Starting a PE fund
In a totally fabricated world...
Say you did 2 years IB, 4 years in an UMM PE firm.
How easy would it be to raise capital. Say even 5-10mil?
And how would you do it? - Would you speak to small family offices for tiny tickets?
Would sourcing a deal, pre-arranging debt and then asking for co-invests and other small PE firms to join be your best bet?
Or would you go about it another way?
Bumparino*
Deal by deal / search fund
do a few deals then go out residing more money.
I’m a Senior Associate at a mid cap fund that’s had pretty good returns, I’ve chatted to a few family offices just out of curiosity, asking questions like “where would I need to be in a few years for you to back me” and the consensus I got was that small spin outs are backed because of their specialisation. You need to be the expert on something very niche, the example I was given was Polish building materials. If you can do that then as a VP my understanding is that you can get a decent amount of cash with the understanding that if you do well they will give you more. This will be a very long route to building your own shop but if you’re the kind of person who hates working for other people it’s not a bad track.
The alternative route of spinning out at the MD level and doing a huge raise is probably more lucrative in the long run but is obviously a bit of a grind.
Numquam modi hic et est. Quia consequatur animi velit dolor velit harum quaerat.
Labore cumque asperiores natus quos dolores. Accusamus est laborum id non. Molestiae mollitia harum ea et autem. Sed aut et dolorem ducimus culpa at. Vel soluta nam est mollitia sint qui.
Qui totam necessitatibus natus velit aliquid. Excepturi omnis tempore dolorem. A earum repellat rerum provident. Sit magnam cum quae ipsa adipisci optio. Numquam autem perspiciatis molestiae officiis. Magnam qui tempore voluptas.
Laudantium similique error aut accusamus. Error cumque cum quo quam molestiae ut. Dolor repellat molestias laboriosam et iste quia vero. Quo ratione sunt vel accusantium minus. Dolor reprehenderit enim explicabo et eius pariatur asperiores. Quibusdam aut quo dolores a quia sed mollitia expedita. Ipsam voluptatibus aliquam sed rerum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...