I have an interview upcoming for a sourcing analyst position at a MM PE firm. The job description says 60% of time is spent on sourcing while the other is spent modeling. Can anyone comment on whether this is a good way to break in and eventually lateral to an actual PE or IB role? Any idea what comp would look like? I'm a little worried it will be a straight cold call job.
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While definitely a good start, you ultimately want to be on the deal execution side from modeling to writing investment memos to reading creditor docs and I think it’s certainly possible to get to more of the execution side from a sourcing position if the PE firm is well know ex. Summit or TA who have that sourcing model, I would try to get a couple of deals under your belt and move ASAP
Thank you for the response. Any idea what comp would be like/ what to expect? It's not at TA or Summit.
Disclaimer: I'm an associate at sourcing focused firm and started out as an analyst. I am very biased.
This is definitely a great way to break into MM PE. With that said, it's important to ask in the interview what the career progression looks like. Structured programs will have a view whether or not the are open to promoting analysts. Structured programs will also have a thought out development plan, such as first 6 months is focused on volume, next 6 on quality, then next 12 on execution (start off with market, then analysis, etc.). Structured programs are the ones you want to go after
You're not going to ever break into traditional buy out firms like Blackstone or Apollo. Just not going to happen unless you break in post MBA. If you want to do LBO, then this role probably isn't for you.
I've seen plenty of analysts get the promote internally, move onto another MM PE firm as an associate, move over to VC or work at an actual company. Plenty of exit opps.
Lastly, don't underr-estimate sourcing or, even simpler, sales. Underlying that skillset is commercial ability. The most talented folks in finance or any industry are commercial and can "win hearts and minds" so to speak. I objectively believe that it's critical for folks to be put in situations where they need to develop commercial instincts early on in their career. You'll always have an opportunity to learn the financial accounting and modeling concepts on your own, or hopefully though the company's internal resources and development structure.
Very helpful and informative. Thanks a bunch! Could you touch on what sort of comp to expect? NYC based firm
all in you can expect anywhere from 100-150k. Base is below 100k
Just my experience. I could be off in some instances.
I know my firm has "business development analysts" which are sourcing analysts and they make 130 -140 all in and it is a 2-3 year program with top performers being given an option to become an associate. I would consider my firm to be a top MM in the midwest to give an idea of firm size.
Honestly kind of surprising comp is that high. I understand the need and benefit of sourcing, but I feel like someone cold calling should be paid much less. I see a financial advisor and sourcing analyst as comparable jobs in terms of cold calling, yet most financial advisors are making less than $60k the first three years.
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