Hi fellow Monkeys,
I have worked previously in Venture Capital, most of the deal sourcing is made from juniors looking at 5-25 startup decks/day as well as follow-up on investments + superstar startups for later stages and goes up to the partners going trough various approvals (at least in my fund). How is the sourcing process in PE? Does seniors/partners give you an industry to look for companies worth investing or a specific business to look at? Are investment banks pitching potential sales? Do companies come to PE funds for a potential LBO/investment?
I am interested to hear in all markets - MM and MF. And all types of investments - distressed, LBOs...
It varies. Some firms (Summit, TA) have associates cold-call, with certain quotas they need to hit on outreaches/interactions. Some firms, particularly ones who are focused on specific industries, will take a more thematic/thesis driven approach. That can be led by the juniors or mid-levels, or under the direction of the senior folks. Other firms, particularly the larger funds, will rely more heavily on intermediary (bank) driven deal-flow, as well as relationship-driven sourcing. That tends to flow from the top down. Almost every buyout shop will get at least part of their deal flow from intermediaries though. There's enough variance here that you'll need to decide which approach interests you the most/fits with your level of experience, and do the research to figure out where you should target.
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