Preparation for MF Associate role
I recently accepted an associate offer at a mega fund doing infra PE starting Fall 2022 and feel a bit overwhelmed. During the interview process, I was told that the main responsibility for an associate is owning the model which seems normal and reasonable to me. I've worked with infra models before and I passed the modeling test but as many on here know, passing an hour long modeling test and building an infra model from scratch under time pressure are completely different levels. The latter of which I don't feel I can do right now. Anyway, my current role allows me enough free time to study and prepare for this but I'm unsure if I should spend most of my time trying to improve my modeling or focus on industry knowledge or just enjoy the free time before I start. The associates I talked to after I accepted the offer did not recommend additional studying but I want to walk in day 1 and not be behind. Does anyone have any thoughts or suggestions?
The main thing people solve for when hiring at the jr level (other than basic fundamentals) is ability to look at something they’ve never looked at before and be able to figure it out. The modeling is pretty intuitive and you’ll figure it out. The bigger adjustment for me was spending 6 hours with a mgmt team in a diligence session and be expected to articulate and view on the business, startegy, and team in our debrief. The qualitative stuff take a bit more practice, the modeling is just 6th grade math — you’ll figure it out.
This is so true, models are easy and anyone can do them. What makes you a good investor is the ability to understand a business operationally and be able to identify what drives value
This is true for corporate LBOs, but from the guys I've talked to in infra PE, the modeling can be quite a bit more complex and seems like an entirely different animal. I wouldn't necessarily assume that what is true for corporate PE is true for infra, but my guess is that while they will expect you to be highly competent in Excel and general financial knowledge, they will help you with any industry-specific intricacies for modeling.
There’s FIG-focused PE firms that are investing in speciality finance and re-insurance vehicles that from time to time will hire a generalist Associate. It’s 6th grade arithmetic and accounting. It’s not rocket science. You can figure it out on the job. If you can’t, they made a mistake hiring you. And your current employer made a mistake hiring you. And your UG probably also made a mistake giving you diploma. If that’s true and you’ve somehow managed to get past all these gate keepers despite have an IQ of 78, well then that’s a hell of a lucky streak and probably not one that will end any time soon… so you’ll still be fine. Don’t sweat it, OP.
Adding on, you’ll be utilizing the firm’s modeling templates and just tweaking / manipulating them. You’ll be just fine homie.
Thanks both for these responses. Definitely put it into a different perspective for me. I think the thought of building a model for a multi-billion deal that will be scrutinized by 10+ banks just sounds intimidating right now.
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