PE firm with 8 employee? trustable??

8 employee=2 founder+2 associates+1 investor relation guy+1 info tech guy+2 law staff....

Is this....common? could this be too"boutique"???? Honestly, will you give your money to this kinda firm? generally speaking.

3 Comments
 

I'd focus more on the size of the fund per employee...are they managing $150 million or $500 million. big difference.

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Best Response

With PE, firms can be much more "lean" than banks because there is not as much administrative crap and not as much of a need for analyst monkeys to do grunt work... and they outsource a lot of the HR-related tasks to headhunters.

Even the biggest funds, e.g. KKR etc. only have a few hundred employees, compared to banks with tens of thousands.

If you meant "8 people" as in "1 founder, 2 MDs, 2 VPs, 3 Associates" that would be fine and there are actually $500MM funds with that structure.

What you described does sound a little small but I would still go for it if it's managing at least a few hundred million.

Keep in mind that the majority of PE firms fall into this category as well - there are only a few "big" ones and then lots of smaller ones with anywhere between $100MM and $1B AUM.

 

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