Post-Banking Seats
Hi Everyone,
Current banking analyst looking to move into a more operationally involved seat relative to your traditional post-banking associate spot.
Understand there is a lot more $ to be made on the buy / refinancing / sale, etc. but the idea of being a desktop analyst for the vast majority of the day isn’t particularly appealing.
Looking for a shop that:
(i) Juniors are more involved in the true day-to-day operations of PortCos / investments
(ii) able to drive operational improvement beyond the traditional fund marketing definition of operational improvement, and
(iii) tends to look at hairier assets assets / 363 but isn’t a pure loan-to-own player
Further, I'd presume interviews at the above type of shop would deviate from the typical interview process; if you have experience with said interview, I'd appreciate if you could share preparation / interview tips. Thank you.
Let me know if any clarification would be helpful. Thank you.
Based on the most helpful WSO content, here’s what you need to know:
1. Shops Matching Your Criteria
You're looking for firms that emphasize operational involvement and focus on "hairier" assets or distressed opportunities without being purely loan-to-own players. These types of shops often include operationally-focused private equity firms, turnaround funds, or special situations funds. Examples might include firms like Platinum Equity, Sun Capital, or distressed-focused arms of larger PE firms.
These firms often involve juniors in portfolio company operations, including driving operational improvements beyond just financial engineering. This could include working on cost-cutting initiatives, supply chain optimization, or even management restructuring.
2. Interview Preparation Tips
Interviews for these roles often deviate from the traditional PE associate process. Here’s how to prepare:
#### Behavioral/Soft Skills - Polish Your Story: Be ready to explain why you’re interested in operationally-focused roles. Highlight any relevant experience (e.g., working on deals with operational complexities or distressed assets). - Portfolio Company Involvement: Be prepared to discuss how you would approach operational challenges in a portfolio company. Use frameworks like Porter’s 5 Forces or SWOT analysis to structure your thoughts.
#### Technical Skills - Modeling Tests: While traditional LBO modeling is still relevant, you may encounter case studies that focus on operational scenarios. For example: - Analyzing cost structures and identifying areas for improvement. - Evaluating the feasibility of a turnaround plan. - Distressed/363 Knowledge: Brush up on distressed investing concepts, including bankruptcy processes, 363 sales, and restructuring strategies.
#### Investor Mindset - Think Like an Operator: Be ready to discuss how you would drive value creation in a portfolio company. For example: - What operational levers would you pull to improve EBITDA? - How would you handle a management team that’s resistant to change? - Hairier Assets: Be prepared to analyze riskier investments. Discuss how you would evaluate whether a distressed asset is worth pursuing and what the potential pitfalls might be.
3. Additional Tips
Let me know if you need further clarification or additional resources!
Sources: Confessions of a former second year IB Analyst, https://www.wallstreetoasis.com/forum/private-equity/on-cycle-recruiting-2018-what-to-expect?customgpt=1, Private Equity Recruiting Walkthrough – My Experience, Interviewing For Infrastructure Investment Roles
Bump
Trust me young-un, you really do NOT want to be dealing with portcos and hairy assets voluntarily. it might feel "prestige" or cool or like you are doing real RX work, but the truth is, it is soul-crushing, and you really want to be winning with minimum effort instead of crisis managing day in day out!
just a 5 cent worth of advice from someone who has had to deal with such situations at my shop, and i am pretty pretty fed up with these situations! give me boring cruising portco life anyway!
Thanks and appreciate the concern.
What would you say to someone who has been in RX banking for +2 years and is fully aware that the lifestyle is worse on the other side?
Couldn’t care less about prestige and looking for ideas / names outside of your blue chip loan to own players.
If you saw the shitcos in RX and can viably see a path to continue that grind on the other side, sounds like HIG/Cerberus/KPS/Platinum is for you. Plenty of info about these funds on wso as well. Their PE strategy is focused on turnaround/hairier assets rather than loan to own. Do you think you're interested in a HF path as well?
Thank you. Any smaller names that come to mind?
I’d venture a guess that there is a positive correlation between fund size and the “cog in a machine” feel/reality, appreciating there are other trade offs, hence the question. Happy to elaborate and please share if you disagree!
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