Hey everyone,
I was wondering if anyone had any information on working for the valuation group within a PE/VC fund. My understanding is that they provide FV measurement for portfolio companies for financial reporting (if required) and for the LPs. Depending on the fund, it looks like they may play some limited roles in the deal and exit processes.
Does anyone have any insight into these positions? Am I missing any responsibilities/roles? What sort of pay is typical? I assume it's below front-office, but am not really sure where that puts these positions.
Thanks for your help!
In-House Valuation Groups Inside PE Firms (Originally Posted: 11/03/2015)
I have seen linkedin's of some people who are specifically within the "Valuations" group of PE arm of megafunds like Blackstone and Apollo Global Management. They tend to come from FLDP/big 4 valuation/non-target backgrounds, which seem to make such a role within reach for me.
Can anyone here tell me more about the valuation groups within PE firms? What kind of skills does one develop there, and what kind of valuations are they performing, that they need specialized people for instead of the PE generalists that are hired from top Ivies? I'm guessing that the in-house valuations people are not running/executing the deals or doing the complex LBOs, and more like what typical big 4 valuation groups do (PPAs, but in-house?). And what are their comps/exit opps?
It kind of seems like a great way to break into PE later on as well.
When I worked in valuations, we reviewed the valuations I believe you are talking about. PE firms needs to report their investments at fair value for financial reporting.
They typically use some mix of DCF/Guideline company/precedent transaction to value these positions. Couldn't tell you exactly what the exits or anything else about these roles.
yeah, it's a support group where you pretty much do quarterly valuation on the portfolio and reporting and that's it. 100% would not lead to an investment role, but it probably be better paid than comparable position at big 4. not sure what kind of exit ops there would be
I suppose it is both for financial reporting of publicly listed funds as well as quarterly reportings for investors/LPs. It's rather a portfolio appraisal function instead of valuating ongoing transactions.
Career Help - In-house PE Valuation Team (Job offer time sensitive) (Originally Posted: 04/07/2014)
Hello everyone,
Long time reader/first time poster here.
Brief background: I was never serious about my career up until recently (age 27). Had all the potential, but just never decided to fully apply it. When I decided I wanted to pursue a career in finance (after taking my final business admin major class - corporate finance), I didn't really have an understanding of the right/usual path (first generation of my family to go the corporate route). So as I have prefaced with that, here is a summary of my profile:
non-target undergrad in CA after transferring from a UC (original psych major) - graduated cum laude (no finance internships) ==>
non-target MBA in Chicago - graduated beta gamma sigma (BB Wealth Management internship/Boutique Investment bank internship) ==>
Valuation Consulting (think Navigant, FTI, Huron - doing Portfolio Valuations, Business Valuations, PPAs, Goodwill impairment, etc.)
I have been doing valuation consulting for 3 years now. I was lucky that one of my Directors focuses on the valuation of private equity/debt fund investments and was also lucky to be put on his engagements from the start. I enjoy these engagements the most and as I recently began to get serious about my long-term career, I have decided that I want to join the in-house valuation team of a Private Equity or Private Debt fund.
That said, I currently have an offer on the table to join the Valuation Review Group of a BB bank (understand this is "back office") where I will be focused on the valuation of their private equity investments. It would be a lateral move in terms of title, but an increase in salary (similar bonus).
As I previously mentioned, my end goal is to join an in-house valuation team of a PE firm. My questions are below:
1) Would joining the BB VRG and getting the brand cachet of a BB on my resume be a good step for my career and towards my end goal?
2) Is valuation consulting at a mid tier firm viewed more highly then being part of a BB VRG?
3) Should I stick it out at my current position (up for manager promotion at the end of the year) while I continue to try and secure interviews at a PE fund?
Any input would be much appreciated as I have to give a response on the offer soon and really have no idea how VRG is looked upon from a PE valuation team point of view.
Cheers.
I understand I rarely post, however I would greatly appreciate any input on this.
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