Percheron Capital - Updated Thoughts?

Curious to hear thoughts on Percheron Capital? Golden Gate spinout with $3bn in AUM - predominantly a buy-and-build ownership approach. Info on them seems to be very limited across forums but I know they raised one of the biggest first-time funds in recent years.

Anyone have any insight on growth prospects, performance, culture, potential opportunities post-associate level? How is the firm perceived? How are the Partners? Any info would be greatly appreciated!

38 Comments
 

If you haven’t heard back I would assume it’s a rejection, they said the process would be quick and have seen some others move onto the next round

 
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I know someone on the team very very well. They've grown very quickly due to a mix of hustle / personal connections from the co-founders (one in particular). They are a sharp team overall that's also very commercial, in a good way. Like some have said, it can be a grind as a junior but I wouldn't say I've heard any terrible horror stories. Culture is typical for a PE firm that is trying to continue scaling with large aspirations, especially with Golden Gate heritage. Is there something you'd like to know specifically?

 

HVAC, roofing, car-washes…they plowed into spaces crowded by a million independent sponsors, search funds and PE backed rollups. Hopefully they didn’t overpay but some of these industries saw 18-19x multiples at the peak for gdp growth businesses with a lot of employee churn risk. Anyone have any insight? 

 

They are the definition of a generic buy-and-built fund. Wlb there is pretty sweaty because they do so many add-ons. They've definitely overpaid on some platforms and other assets, but if there's any generic buy-and-build fund that is decently positioned to weather the storm, imo it's them. They've built out legit BD and ops teams. From my experience, they're pretty good at scouring out unbanked add-ons to achieve multiple arbitrage, and their porfolio support group is legit, their portco assets that I'm aware of are actually integrated pretty well (unlike some other buy-and-build funds whose portcos are just a bundle of sticks).

 

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