Need advices : launch your PE fund
Hi,
Currently interning at a private equity fund in Paris, future masters student at Imperial. Personal background: entrepreneurial family with a large group (approx. €1 billion in revenue) without a private equity arm at present — long-term goal: to develop this fund (ideally within ~5-6 years after graduation).
In your opinion:
For these 5 years :
- Is IB/M&A essential before PE, or is direct PE ok (if possible... obviously)?
- Or should I join the family group directly after graduation in the M&A department (corporate development) ?
•And, is London a real plus in terms of networking/LPs, or is it not key? Given that the fund will prob. invest in Europe but mainly in France
If you were in my shoes, what would you do to optimize speed, credibility AND SKILLS in order to launch a fund?
Best,
To optimize your path toward launching a private equity (PE) fund, here’s a breakdown of advice based on the most helpful WSO content:
1. IB/M&A vs. Direct PE vs. Joining the Family Group
Joining the Family Group: If the family group has an M&A or corporate development arm, this could be a viable alternative. It would allow you to gain relevant transaction experience while also building a deep understanding of the family business. However, this route might limit your exposure to external deal-making processes compared to IB/M&A.
Recommendation: Start with IB/M&A at a reputable firm. This will give you the skills, credibility, and network needed to transition into PE and eventually launch your fund.
2. London for Networking and LPs
That said, if your fund’s focus is heavily France-centric, you’ll also need to maintain strong connections within the French market.
Recommendation: Spend time in London to build your network and gain exposure to the global PE ecosystem. This will enhance your credibility and help you attract LPs when you’re ready to launch your fund.
3. Optimizing Speed, Credibility, and Skills
Long-Term (Launching the Fund):
Key Skills to Develop:
4. Additional Considerations
Final Thoughts
If you were in my shoes, the optimal path would be: 1. Start in IB/M&A at a top firm to build foundational skills and credibility. 2. Transition to a PE role to gain direct investment experience. 3. Spend time in London to network and build relationships with LPs. 4. Leverage your family’s entrepreneurial background and network to secure initial capital and launch your fund.
This approach balances speed, credibility, and skill development, setting you up for long-term success in launching your PE fund.
Sources: Leave banking to start a PE fund?, Leave banking to start a PE fund?, Q&A - Starting Post-MBA Megafund PE, CorpDev to PE prospects - creating a long-term map / success stories
If you can go straight into PE at a reputable firm, I would. If not, 2 yrs M&A and ~4 years of PE and you’ll be in a good spot. I say 4 years of PE, rather than 2, because as an associate in your early buyside days it will be IBD analyst years 2.0. Initially you are an execution bot and don’t gain the responsibly to think and guide the investment process until years 3-4. Just my experience
Thanks!
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