Hi guys, A little bit about my background, I'm not from the US went to a "target" school and have decent grades. I have some experience working in a strategy role, as well as some investment management experience looking at global micro/small-caps. BUT, I do not have any banking / deal experience.
I've recently reached out to a startup private equity group (founded in 2016) that invests in an extremely niche industry (the industry size is 1bn in size). He's generally done deals in the 5-15m space and capital is raised on a deal-by-deal basis. The fund generally takes majority positions / LBO's. He's also coinvesting with some bigger funds based in Europe.
Thing is - yes, the fund is completely no name, and the founder doesn't have a PE background, but had a short tenure in MBB consulting. From the diligence I've done they are doing VERY well.
I know things aren't set in stone but I've been pretty clear about my intentions in the possibility of joining the fund as an analyst.
Is this opportunity worth pursuing if I want to make it in an investing role down the track in PE or VC? What questions should I be asking in this informational interview? What are the exit opps for this sort of thing? Is there a possibility to move to a bigger fund or can I move to corp dev?
Thanks guys, Please let me know if there is anything else I can clear up
What's your goal?
If it's a j-o-b then this may not be for you. If you want to be a hustler and create independent wealth, then this guy may be a great mentor for you.
I would dig very deep into actual, tangible success. What pelts has he put on the wall in 3 years?
Exits? 1. Learn what he does and do it on your own (where, when and how you want) or, 2. Go apply through HR to a bank and trade your waking hours for the security of a paycheck.
I would say it's totally personality based and you shouldn't try to rationalize the decision too much.
Thank you for the advice.
I suppose the eventual end goal is ended up in an investing role in PE/VC, or an operational role in a portco or in the industry the fund invests in.
If I want to end up in PE/VC I know its going to be difficult with my background coming into this space. I just got really lucky that I've had previous operational experience operating in this industry..
Apologies for being vague - if you don't mind I could shoot you a PM?
Thanks again
Bump
I think what the original responder is saying - and I agree with - is that if you're looking at this as a career building job to use as a stepping stone to a more corporate job, it might not be the best move.
You would take this job if you felt like the guy you were going to go work for was going to continue to be successful and hungry for deals. You would go work for him if you thought you would be able to contribute and potentially stay there for the rest of your career and build a team under you and co-invest in his deals and actually create wealth for yourself.
That is the dream right? Would you rather be able to say that you work for blackstone and make very comfortable money or would you rather say you work for a shop no one has ever heard of and are building real wealth for yourself? (Not that you can't do that as BX, I'm just making the point that a smaller shop working for a really hungry / successful founder (who has a track record) as the second employee sounds like a very nice risk/reward to me....)
Posters above nailed it. You can make a lot of money at small shops especially since it's easier to post great IRR. If you believe in the founders and hash out a real path to meaningful participation then do it.
This sounds like a very interesting and unique opportunity! I'd also agree with the above posters on all their points.
If you would like, I would be happy to put you in touch with a friend of mine who manages a platform raising deal-by-deal capital for independent sponsors from a group of UHNWIs and family offices. Typically looking to deploy 5-20m clips so it sounds right in this fund's range. He's closed around half a dozen deals in the last year or so and I think he could give you some more perspective on what it's like to work with people at these small niche shops. He could also be a friendly face for you to raise capital with if you do end up choosing to work there. Feel free to PM me if you're interested.
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