Peterson Partners? (Utah)
Hi all,
Does anyone have any insight on Peterson Partners in Utah? Currently in NYC but have strong personal motivations to move to Utah. Peterson seems like the strongest buyside firm in the state. Anyone know what comp is like at associate and VP levels? Also, is it a good place to build a career, or do you have to be in the “right” LDS family (personal connections to the partners) to do so? I went to a “top” target (whatever that means — one of HYPSM) and am currently at a MF; I assume I would be a more “blue chip” candidate (again, I think this sort of categorization is dumb) than most folks applying for associate positions there, but maybe it’s all about personal connections.
I saw on Pitchbook that fundraising has been a little weird over time — not sure what’s going on there, but would appreciate any insight on the current standing of the firm and where they’re headed (winding down, ramping up, etc). Are they considered a true LMM or kind of sit between LMM and MM?
Bump
Based on the most helpful WSO content, here's what you need to know:
Peterson Partners is indeed one of the more prominent buyside firms in Utah, and it has a reputation for being a solid player in the LMM space. However, there are a few nuances to consider:
Compensation: While specific numbers for associate and VP levels at Peterson Partners aren't directly mentioned in the WSO threads, LMM firms typically offer lower compensation compared to MM or MF firms. For reference, LMM associate comp can range from $150K-$250K all-in, depending on the firm and carry structure. VP comp would naturally be higher, but still below MM/UMM levels. It's worth asking directly during the interview process about their carry structure and co-invest opportunities, as these can significantly impact long-term earnings.
Career Building: Peterson Partners has a reputation for being a good place to build a career, but like many firms in Utah, personal connections and cultural fit can play a significant role. While your MF background and top-tier education make you a strong candidate, it's worth considering that firms in regions like Utah may place additional emphasis on local ties or cultural alignment (e.g., LDS connections). That said, your credentials should still make you competitive.
Fundraising and Firm Trajectory: The fundraising challenges you mentioned on Pitchbook could be indicative of broader market conditions or firm-specific issues. It's not uncommon for LMM firms to have uneven fundraising cycles, especially if they are reliant on a smaller LP base. It would be wise to inquire about their latest fund size, investment strategy, and any recent exits to gauge their current standing and trajectory.
LMM vs. MM: Peterson Partners is generally considered a true LMM firm, though they may occasionally play in the lower end of the MM space depending on deal size. Their fund size and deal focus will likely confirm this positioning.
If you're serious about moving to Utah and joining Peterson Partners, it would be beneficial to network with current or former employees to get a clearer picture of the firm's culture, comp, and trajectory. Additionally, understanding their expectations for associates and VPs, as well as their long-term growth plans, will help you make an informed decision.
Sources: LMM PE Associate Experience - What is it REALLY like?, Urgent: Partners Group vs MMPE, LMM PE Associate Experience - What is it REALLY like?, PE Associate Offer - Comp Too Low?, Ask CompBanker
I would strongly suggest staying away from Peterson. Honestly just rude seniors, low comp at all levels and terrible deal experience compared to any other fund. Tower Arch is definitely the better place to be in Utah, but if you don't want Tower Arch, I would do my best to try and figure out a hybrid / WFH setup with a fund in the Bay.
Thanks for your response, this is helpful. Do you have personal experience/been in Utah? The thing I’m worried about with Tower Arch is it looks like there could be some nepotism — two of the partners’ sons work there. Is there upwards mobility in the firm? Last thing I want to do is transfer to a fund where I get pushed out after two years and can’t transfer to another reputable fund.
Yes I have experience interning at and close relationships at the Utah funds. Tower Arch's path to promotion requires an MBA, but post-MBA hires are (or at least told they are) on partner track. Peterson is more murky because as you noted their fundraising isn't linear; they aren't trying to grow fund size because they like where they sit right now. That being said, I do believe Peterson has a clearer "path" forward because they are more of an ad hoc promotion style, but even with a promotion you don't start receiving meaningful economics in the fund because they aren't growing so there's just no new economics to spread around without diluting existing seniors. Tower Arch's growth trajectory and culture is infinitely better than Peterson's so if you can get a VP spot there, would be a no brainer IMO.
Also, FWIW, the two "sons" you mentioned at Tower Arch aren't actually sons of the partners (although one of them is a nephew of one of the partners), but both of those guys are very competent and deserving of their seats so the "nepotism" isn't as much as you think.
Hope this is helpful color!
This is extremely helpful, thank you! That all makes sense. I shouldn’t have assumed those two guys were sons — just noticed the same last names and made an assumption. Thanks for the clarification. Glad to hear about Tower Arch’s success; they are the second firm I’ve been looking at. Thanks again for the color; it’s a bit challenging getting information about Utah firms.
The Utah landscape is pretty bifurcated:
Top shops are Tower Arch, Sorenson, and Peterson. You can kind of think of it similar to a S/H/W sort of situation: Tower Arch is the place you go if you want to do buyout, and Sorenson if you want to do growth. Peterson is clearly in the top 3, but it is always #3. They have the buyout arm, venture arm, and search arm. I've not known a ton of the Peterson folks but have a couple personal connections, and they're very solid guys.
Then you go down into every other VC / Angel / "Growth" group. Think Pelion, Mercato, etc. whose job is half time looking for deals and half time going on LinkedIn to talk up the Utah tech and VC scene. I'm not saying that some of it is not warranted, to be clear, but if Utah could export hype then they'd be the highest GDP state in the country. You also have some buyout in this group, such as Cimmaron, that are sort of there but not something to write home about.
For what it's worth, I don't have the same experience as the poster above with Peterson. This could be because of lack of exposure, but word tends to sort of get around and I haven't heard that bad of things. N=1, but still.
I'd also echo what they have to say about Tower Arch. Yes, there's a touch of nepotism you can see from the outside, but those guys certainly earned their spots and frankly could recruit elsewhere and come up just as successful. It wasn't the name. But if you look at it the other way around--You do PE beforehand, you go to a top school, and you want to return to a killer partner track job in the state you love--why on earth would you not go to TAC?
As far as recruiting, you'll do just fine with your background there and I can't imagine why you wouldn't get looked at. Being LDS is not a requirement. Might help you fit into the culture of every Associate having at least a 2 year old and you might not go out to bars each weekend with the other Associates, but if that's not your speed anyways then you're going to have a fantastic time.
Can't beat the skiing either!
HMU if you'd like to talk live about it sometime, I'd be happy to connect.
This is so helpful! Thanks for your response and insight. I will most likely reach out at some point to connect live. Thanks for being willing!
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