Outlook on (Tech) PE recruiting as incoming AN1
Incoming AN1 to one of the top EB (CVP/EVC) whose goal has been to exit and stay in PE long term; definitely want to be investing but HF is too risky for my risk preference.
Previously wanted to exit into tech / software PE but now with the AI events I'm not so sure. From a long-term career stand point does it make sense to still target tech/software PE or should I look into other safer (healthcare maybe?) PE firms/groups as well?
Am a current An1 who's recruiting off-cycle for growth roles, so admittedly biased.
Rough, I think growth is in a better spot if goal is to do tech investing that requires some level of hard skill development. Think buyouts is hard because most firms are focused on really creating value through margin expansion, which is exponentially harder with the rise of AI. You really need to be agile and invest in product development more than ever, especially if you are the legacy incumbent (as many of these buyout assets are). Just like for any tech revolution, would rather invest in the disruptors (the companies venture / non-buyout growth is doing) than the disrupted.
How do you feel about growth buyout roles? For example firms such as Hg who make control investments in high growth SaaS businesses?
Am a first-year in tech banking, so take with a grain of salt. From my vantage point, I don’t really view Hg as “growth buyout.”
Yes, their companies often grow double digits, but they use leverage fairly aggressively and run traditional control buyouts. To me that’s more “growth at a reasonable price” buyout than true growth equity. Not saying they in particular will struggle or anything, but just don't see them as growth buyouts.
If you look at something like the GrowthCap list of the top GE firms of 2025, a lot of firms labeled “growth” are still doing control deals with some debt alongside minority investments. Also will note that list includes firms with various stratgies like Charlesbank, who has a seperate growth-y team and a JAMMBO team..
Broadly, I do think growth is structurally better positioned than classic buyouts in a world of higher disruption and lower predictability. Beyond company profile, lower leverage simply gives businesses more flexibility to reinvest and adapt as industries evolve. In a faster-changing environment, that matters.
I shared detailed thoughts on another thread a few days ago so not going to rehash (search function - probably why limited responses)
BUT just so you all know… GrowthCap is total trash. If you were to print it out, it wouldn’t be worth the ink. It’s a pay-to-win “ranking” site. No merit at all.
That’s why you see MD from struggling JAMMBO listed alongside principals from shops you’ve never heard of. A few good firms are there but notice how it’s not their top professionals or all top firms? It’s just a joke.
Use it as a source to make list of firms to research but ascribe no merit to them. It’s actually probably closer to a list of firms to avoid than a list of firms to target.
You can double check me with a LLM or checking the PE sites website for disclaimers…some compliance teams will add footnotes basically saying GrowthCap is a paid promotion.
There are other sites / rankings that pull this same BS to trick lazy LPs.
Was not meaning to use that as a basis of good firms, just firms that fit the growth moniker broadly speaking that you can do further research on. Growth cap has a lot of JAMMBO firms in every year list, but also seems to have some emerging managers or smaller managers as well.
I didn’t say you were. I wouldn’t even view it as your super broad growth moniker thing. It’s literally… I will pay you to say I’m a top growth investor.
You can start a 1-person shop tomorrow called 57th Street Ventures and make it on the list if you paid the fee. It wouldn’t make you a growth investor. That’s my point.
That’s not really fair. Every list can be gamed and every ranking list generally asks for payment to be included / promoted (like, every single one because the platform pushes distribution).
Otherwise the growth cap list is fair. It’s fair to say some smaller names have better performance than big names, although there are tons of missing big firms I agree, so in other words there are no real “surprises” as to who’s on that list but perhaps odd that a few are missing.
Obviously the list loses absolute credibility if it follows your example - like Forbes is a paid site everyone knows, but doesn’t mean some lists aren’t fair. Not sure why you’re being so aggro
There’s a difference being aggro and objective lol. Not sure how you found this offensive as someone just joining the thread. Do you work at GrowthCap?
GrowthCap is known for being pay-to-win where others, like Forbes, have avoided that reputation… there’s a reason for that. Look at the list again, red flags should go up. HEC is much better (heard of it?).
I’ve invested in several funds and marketing businesses. I get that different funds have different returns, not sure how that point is additive. Yes, some other lists take payments (there are a lot lists). NerdWallet does it to determine list order, etc etc.
The key is how much payment influences selection. From my first hand experience informed by talking to people on the list, that weight is 100% at GrowthCap.
I’m just trying to be helpful to new professionals in the industry. Some will listen. Some will try to tell me it’s a bad take while also hedging some level of agreement, leaving me confused on if they understood the main points. Totally fine with me either way.
If you want to ascribe any merit to GrowthCap for the purpose of making career decisions, be my guest.
As for aggro…. If you go into PE looking to find examples of aggro in every conversation… you’re gonna have a bad time. Not everything is that deep.
I think Hg is uniquely great here - haven't looked at which case studies they share publicly, but many examples of them launching new products via their AI incubator (Catalyst) that have driven 7-8 figures of NARR across their existing vSaaS portfolio
Bump - interested as someone who signed software PE in OCR but thinking to lateral ASAP or even go back/stay in IB for time being
same boat.
in tech IB and signed with a great large cap software buyout fund. great comp benefits promotion rate… but now I’m hesitant
Bump - Do you think HHs would understand re-recruiting / reneging given how much the market’s changed in the last few months?
how easy/hard is it to move from software PE (TB, Vista, FP, Hg) to growth investing after 2 years as an associate?
You will certainly get interviews. Up to you to convert to offers.
You should get every look for good growth shops (whether crossovers, growth specialists, or multistages). Was at one of the above and now am at a multistage/growth team.
Bump - I also signed with one of the names you mentioned but now anxious as to whether to re recruit
If u only wanna do tech just go for FP or EQT, if u wanna do payment focused go for Nordic; EQT does overpay for asset but they are solid in general, FP and Nordic barely overpay and they buy quality asset. Also great place for upward mobility for these
wild trying to put FP and EQT in the same tier lol
did I say tier? i said experience and exposure wise. Wut is so important abt tier, at the end of the day it's abt who make it to VP to principal to MD not whether you are stuck as an asso at BX
Me reading this having signed a large cap software buyout fund wondering if im screwed and whether i need to re recruit. I genuinely wonder as if i made a really bad decision and fcked over my career.
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