Nervous About Joining PE Firm Without a Ton of Live Deal Experience
Hi everyone, WSO has helped me a lot in the past couple of years so I want to ask around for anyone who has had this very unusual situation:
I am in a pretty slow deal flow team - in the past two years, I have been on one full buyside and have worked on two sell-sides, one of which stopped right before launch, and another that is ongoing and will likely close by the time I leave, but has not been super intense. I have also worked on a ton of pitches of course and a couple of bake-offs in the past two years.
I am not joining a super intense MF or UMM firm, by any means, but fear that I have not really had as intense of an experience as my peers, given my hours in the past couple years have been relatively light and my seniors aren't horrible people (I only say this to show that although I can take pressure well, it hasn't been like there's a gun to my head).
The MM I am going to is expected to have solid WLB (I have a bunch of solid indicators), but still feel like because of my relatively weak background given the slower deal market, I will have to play catch up severely and not know what I'm doing...
Anyone in a similar situation who ended up adapting to the curve and can talk about their experience? I am prepping on my own for the role through modelling resources like WSO and BIWS and stuff, but want to know if there's anything else I can do or how I can mitigate this less intense experience.
On the bright side, I am not burnt out by any means and will be joining this new firm very fresh, but arguably, with less experience.
Would love to hear anyone's take on this, thank you very much in advance.
Ahoy there! It sounds like you're about to embark on a thrilling voyage into the world of private equity, but you're feeling a bit like a ship without a full sail due to your deal experience. Fear not, for I've navigated through the vast ocean of WSO wisdom to chart a course that might help you weather this storm.
First off, it's commendable that you're already leveraging resources like WSO and BIWS to sharpen your modeling skills. That's like hoisting the main sail in preparation for the journey ahead. But let's dive a bit deeper into the treasure trove of advice and insights from the WSO community to ensure you're as prepared as can be:
Embrace the Learning Curve: Based on the collective wisdom of WSO, it's clear that many have found themselves in similar waters. The key is to embrace the learning curve rather than fear it. You're already ahead of the game by acknowledging areas where you need to catch up. Keep that mindset, and you'll find that the gap in experience can be bridged with dedication and the right attitude.
Networking Within the Firm: Once you've set sail with your new firm, make it a priority to build relationships with your new crewmates. Seek out mentors who can share their navigational charts (i.e., their experience and insights) with you. The WSO community often highlights the value of internal networking for learning and growth.
Proactive Learning: Continue to be proactive in your learning. Beyond modeling, dive into understanding the nuances of the deals your firm works on. This could mean studying past deal structures, industry trends, and the rationale behind investment decisions. The WSO forums are a goldmine for discussions on these topics, offering perspectives from professionals across the spectrum of PE.
Soft Skills: Don't underestimate the power of soft skills. Your ability to manage relationships, communicate effectively, and work under pressure are just as important as technical know-how. The fact that you've had a relatively balanced work-life balance and haven't been "burnt out" suggests you might bring a fresh perspective and energy to the team, which can be invaluable.
Ask Questions: It's okay not to know everything. What's important is your willingness to ask questions and learn. The WSO community often emphasizes the importance of asking thoughtful questions and showing eagerness to learn from those questions.
Stay Positive and Confident: Finally, confidence is key. Believe in your ability to adapt and grow. Your fresh perspective and untapped energy can be your greatest assets. Remember, every seasoned sailor was once a novice navigating their first storm.
In summary, while you might feel like you're playing catch-up, remember that every journey is unique. Your path has equipped you with a set of skills and perspectives that can be just as valuable in the PE world. Keep leveraging resources like WSO, stay curious, and don't be afraid to lean on your new team for guidance. The seas might be rough at first, but with time, you'll find your footing and navigate with confidence. Best of luck on your new adventure!
Sources: Q&A: 3rd Year PE Associate ($10bn+ AUM, MBO/LBO, equity, mezz, distressed debt), https://www.wallstreetoasis.com/forum/private-equity/then-and-now-compbanker?customgpt=1, Family Office Private Equity, Selling Company to join a private equity fund, How to Talk About PE Deal Experience?
You'll be totally fine. It's a steep learning curve for any new associate.
Not a problem. Plenty of teams have had lighter years, it's not something you can control and they expect that you will need to ram up in the first few months.
Also don't forget that the last ~3 classes have had significantly impacted IB experiences due to Covid, WFH and low deal flow, so the classes above you were probably not superstars on day 1 + the expectations are generally pretty low given people will be starting from different points
I really appreciate the answer from both of you, as it took off a bit of anxiety from my end. My main concern is not just reps, but rather more about intensity. I had a one month stretch where I was going to bed at 3 AM every night and handled it just fine, but have not really done any all nighters nor have been holding the pen alone on any models or anything crazy.
Can’t help but feel super disadvantaged through no fault of my own. I’m also feeling crazy imposter syndrome because the other candidates had more tangible experience than me, but maybe I was able to talk about my experiences better, simply because I had more time to prep. I’m genuinely interested in the industry the fund I’m going to specializes in, which I’m sure will help, but am still feeling angsty looking for ways to prep.
Any further thoughts?
If it helps, having bad experiences in the past doesn't necessarily make bad experiences in the future any better. It's the old "If I told you I was going to kick you in the nuts in a month, would you practice for it by getting kicked in the nuts every day?".
Super intense stretches of work just suck no matter what. The truth is the job isn't that "hard" and like the others said pretty much every new associate has to adapt. If you could make it into banking and get through PE interviews you've got the brains for it. You'll be fine.
My $0.02 here is that not getting crushed as an Analyst is net beneficial for you in your career long term.
From a reps and experience standpoint, the marginal benefit you get from working 70-80+ hours per week isn't that significant vs 60 hours per week (especially if it is mundane or repetitive work). If anything, your peers who consistently worked 80+ hours are more likely to be burnt out and less driven/ enthusiastic at their new roles.
In similar situation. Did dcm for a year, then lev fin for 9 months, unsure if I have enough experience by the time I start new job
Find a role with 60 hr per wk or less
I can handle work intensity, I’m just saying that I haven’t gotten the chance to get as many reps as if I’d be in a more intense group given the slower deal flow. Looking for resources to better the transition or to hear from someone who had a similar situation.
Hey man,
It's completely normal to feel nervous about joining a private equity firm, especially if you don't have a ton of live deal experience under your belt. Transitioning to a new role or industry can be intimidating, but it's also an opportunity for growth and development.
One thing to keep in mind is that everyone has to start somewhere, and many successful professionals in private equity didn't have extensive deal experience when they first entered the field. What's important is your willingness to learn, adapt, and contribute to the team.
Consider leveraging your existing skills and experiences to add value in other areas, such as financial modeling, due diligence, or relationship building. And don't be afraid to ask questions and seek guidance from your colleagues and mentors. Showing initiative and a willingness to learn can go a long way in establishing yourself within the firm.
Remember that joining a PE firm is just the beginning of your journey, and there will be plenty of opportunities to gain hands-on experience and grow in your role over time. Stay focused, stay curious, and embrace the challenges and opportunities that come your way.
Best of luck as you embark on this new chapter in your career!
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