If you had an offer to both of these shops, where would you go?
STG has more AUM, larger funds, fantastic returns and has worked on more notable buyouts like McAfee, FireEye and RSA (all multi-billion dollar deals). They are more of a value investor that focuses a lot on carveouts. Historically, they were known to be pretty sweaty but apparently the culture has changed since the founding partner left 4 years ago and they became an institutional fund instead of a family office. Headcount and AUM has more than doubled since then as well.
Serent is a little more down market and purposely keeps their funds smaller, even with massive demand. Apparently their returns have consistently been in the top 2-5 percentile. Culture seems amazing and everyone seems wicked sharp. They are more growth investors than value.
Have been across from both, good options to have.
I like Serent, they're more growthy and the down market angle is interesting. We've gone down the path on some really cool companies that wouldn't fit the bill for someone larger like an STG.
Makes sense. I know they are both growing funds but do you have any idea of general perception/rep of them? I know it’s a less important question than what the job is actually like but I haven’t been able to get a good pulse on it.
Don't really keep track of perception/rep, just pitch them ideas if they fit the bill.
Serent guys are top notch and top percentile returns don’t surprise me. The 1 deal I worked on with them, they realized 150% IRR with minimal leverage - returns driven almost purely by growth.
Serent is great. Compete with them often and they’re very good. I would say outside perception matters less and less in growth, what really matters is what management teams ultimately decide to partner with you versus other firms - and they’ve been very good. If you don’t want to stay you will have options to leave, if that’s what you’re concerned about.
Old but can you say more on what kind of optionality you're referring to here? It looks like most people go to operational roles?
Following
Don’t know much about Serent but I have only good things to say about STG. I believe it is still pretty sweaty but a sharp team and there value approach to tech is pretty unique compared to others in the space.
My close friend works at STG. Can confirm the sharp team, stellar returns and solid fund growth. In terms of sweatiness, consensus is that they work a good amount, but still less than their late stage buyout competitors. Big WLB improvement from banking
Have worked with both and would take Serent.
Serent is the absolute best at what they do (their returns are absolutely amazing - they could raise a fund 10x the size of what they have but have instead chosen to keep fund small and keep doing what they’re doing). Everyone in the tech space knows them and knows how good they are. I’ve also liked all the people I’ve met from Serent - STG feels a bit more like a stuffy PE shop whereas Serent has that growthy-laid back vibe that I think is much better to work for. Haven’t worked at either so don’t read too much into this, but Serent people have just always seemed more chill to me
I think this post misses the mark unfortunately, particularly the notion of a "growthy-laid back vibe." Added some thoughts below comparing these firms
Symphony is more of a sure-thing IMO and better reputation across the broader private equity and tech ecosystems. It's a better brand and you'll get paid more. As for Serent, I would be careful. I've heard that juniors get worked to the bone and it's pretty sweaty despite what you may hear as the outward facing message. Comp is also below market. I think they've had trouble keeping their best ppl - take a look at turnover last few years.
Not that associates at STG don't work a lot - they do - but at least you get the benefit comp and the brand is more widely recognized. STG's strategy is also more proven. Serent is still scaling and historical returns don't tell the whole story since deal sizes were much smaller
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