Thoughts on an Emerging PE Fund
I have been an associate with a growth MF (GA, TB, etc) and was recently approached by an HH for an opportunity to join an emerging manager who is currently trying to raise a 700m to 1B fund. I have had a conversation with the team and want to know your thoughts, especially as I am on VP track. Here are the details.
1. Founder used run Europe for a well respected MF (Warburg, Advent TA etc). He wanted to start his own firm in the European software space. He has a greater track record, last 15 years invested approx 5B of capital and returned about 20B of capital.
2. Comp is in line with my current job - main benefits is that I have more responsibilities, more freedom and an opportunity for significantly more carry - assuming the fund is successful.
3. Interestingly, he is still part of the previous firm listed as a deal partner. They are letting him to do this. He has hired a few members for his team, also he has great advisors. Including Park Hill/Evercore and top Lawyers.
What do you you think of the opportunity? Should I take it? How about the software space, still room to run?
Edit: he has not officially started fundraising, but already has 2 term term sheets from blue chip investors for 400M
What’s the line of sight on fundraising? That’s all that really matters here
Based on the most helpful WSO content, here are some thoughts on your opportunity with the emerging PE fund:
Key Points to Consider:
Founder’s Track Record:
Compensation and Responsibilities:
Current Involvement with Previous Firm:
Fundraising Status:
Considerations for the Software Space:
Questions to Ask:
Stability and Working Capital:
Career Progression and Mentorship:
Conclusion:
Opportunity Assessment:
Next Steps:
Feel free to ask additional questions or seek further clarification on specific aspects of the opportunity!
Sources: Startup PE Shop - Self Funded, Software Engineering seems like the best job one could have, Does it make sense to go from software CD->traditional PE if my end goal is software PE?, IB or $200M PE Fund out of UG?, Do you think it's justifiable to ask for 25% of the GP for being the fund raiser for the projects?
I've also been contacted about this position (assuming this is the MD from one of the 3 respected funds you list... ), sometime over the summer. I didn't end up proceeding because it was a very early stage setup with seemingly nothing but him committed. I don't think it's necessarily a bad idea fwiw, and some of his deals are quite interesting. But I am at a bit of a different stage where idk if I want to take on as much risk as this. It needs to be well set up with commitments not just chatter.
It's a super interesting space though, and if I leave my current UMM/MF gig, I'd definitely want to be in the sub-2bn area.
Qui doloribus dignissimos omnis nobis laborum qui. Magni voluptatum odit reprehenderit expedita voluptatem ut culpa ea. Quasi ea at eos placeat minima et. In a aut voluptates vitae autem aut recusandae. Et doloremque incidunt accusantium nesciunt. Expedita id ab quae numquam voluptatibus illo.
Quidem assumenda quis voluptatibus et nisi et officiis. Rem aut accusantium labore quia iusto. Commodi expedita voluptate impedit officiis voluptas. Consequuntur provident illo saepe sapiente ut eum. Deleniti velit aut reprehenderit perferendis fugit. Est ut ut ut possimus voluptatem. Quia enim nobis ipsa tempore.
Quibusdam consequuntur inventore magni ea quia. Et repudiandae eum sit corporis qui. Odio eos consequatur tempora optio culpa aut. Sed aliquam nihil voluptatem dolores corrupti.
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...