Thoughts

Based on the most helpful WSO content, here are some insights to consider:

1. Firm Reputation and Background:

   • Vertica Capital Partners is a small and new firm, which can be both an opportunity and a risk. The fact that it is run by an ex-Blackstone professional is a positive indicator of the firm's potential and the quality of mentorship you might receive.

2. Role and Responsibilities:

   • The role at Vertica Capital Partners seems to be heavily focused on deal sourcing, which might not be as technical as an Investment Banking (IB) role. This could limit your exposure to the technical aspects of finance that are crucial for certain career paths in Private Equity (PE).

3. Growth Opportunities:

   • Working at a smaller firm can offer significant growth opportunities and a broader range of responsibilities. You might gain a more comprehensive understanding of the business and have a closer working relationship with senior professionals.

4. Exit Opportunities:

   • Exiting to larger PE firms from a small, new firm can be challenging. Larger firms often prefer candidates with a strong technical background and experience from well-established institutions. Completing two years in IB at a reputable bank like Canaccord, Stephens, or Piper Sandler could provide a more solid foundation and better exit opportunities into larger PE firms.

5. Long-Term Career Goals:

   • If your ultimate goal is to work in lower middle market (lmm) PE, consider where you will gain the most relevant experience and skills. IB roles are typically more technical and can provide a strong foundation for a future in PE.

Recommendation: - Given your concerns about exit opportunities and the technical nature of the work, it might be more advantageous to accept the IB offer. This path can provide a robust skill set and potentially better exit opportunities into larger PE firms in the future.

Remember, the decision should align with your long-term career goals and where you believe you will gain the most valuable experience.

Sources: Q&A: VP in Private Equity (Growth Equity + LBO)...Post-MBA...Formerly IB Analyst, Q&A: Private Equity Investor at a Large Buyout Firm Focused on Growth and LBO Strategies, Thoughts on PSG Equity / Providence Strategic Growth (2022), CVC Capital Partners case study - Investment team, Lead Edge Capital - Growth Equity Info