Should I know target funds before initial HH chats

I'm curious if it's recommended to have already analyzed and researched a HH's client list and know your top funds before the intro HH call. I've also heard you should just know your preferences and that the HH will help guide you and send you clients that are wanting to interview, which makes more sense to me. Which of these two is expected?

I started researching CPI's clients and it was taking me way longer than expected (underestimated ~110 funds) lol. Thanks!

3 Comments
 

You should probably have some specific criteria other than “I want mega fund” or “I want anything”.


Having a very narrow list is not “normal” but probably a good thing to do to put you a little ahead. 
 

I also think it would be easier for you if you take more of a top down POV vs bottoms up — eg if you realize you want to do consumer/ retail in New York in the MM/UMM range, then you know you’re looking at sycamore, L Cat, TSG, and then all you need to figure out is if these are represented by CPi and if you like their specific niche in the space. 

 
Most Helpful

I agree with this. If you're diehard on 1-2 names (sounds like not), you can be vocal there (e.g., have ties to a niche city with literally 1 firm and want to be there at all costs). Otherwise, I'd think about criteria like:
 

  • Main criteria
    • Geography
    • Fund size
    • Investing type (growth, LBO, etc.) and style (growth vs. value)
    • Sector (consumer, software, generalist, etc.)
    • Maturity (newer fund vs. more established fund)
  • Other criteria (probably less likely to vocalize but items to sniff out/consider before/during a process)
    • 2 or 3+out vs. history of straight-through promotion
    • Culture
    • Performance/fundraising track record (can be researched)
    • Employee retention/turnover
    • Duration of each role and progression (2 vs. 3 year program; Senior Associate before VP; at what level carry is received)
    • Investment approach (hands-on/operational vs. hands-off)
    • Complexity of deals (carve-outs, buy-and-build theses, etc.)
    • Fund concentration (AKA will you help with 6 portcos or 2)
    • Single fund vs. multi-fund strategy (doesn't really matter, albeit sometimes impacts culture if you're not at the "main" one but can also open more doors for promotion)
 

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