Thoughts on growing with a no name small-mid cap private equity firm with $170m in aum
I’m at a Canadian target and will be graduating soon and I have an offer in private equity at a new private equity firm in my city. I have worked there previously and they have an ambitious team with a good direction for the next 20 years. It’s a fairly new firm but it’s growth has been high since incorporation (7 years ago). In the midst of a COVID 19 pandemic they have solid deal flow and are currently in the process of adding 2 new companies to their portfolio.
My questions:
Am I taking a risk by joining a no name firm from a target school?
Can I go from small mid cap private equity to a solid investment bank during my post graduation? (Solid as in a big 5 Canadian bank, or a decent Swiss bank).
Is there anything wrong with my mindset in looking to grow with a firm. Should I reconsider this?
P.S I understand we’re in the middle of a global pandemic and the unemployment rate is very high. Considering that should I just take this offer, or re recruit again?
Thanks.
A firm that has been around for 7 years with only 170m in AuM is definitely small-cap.
Unless they are raising another fund right now, I would be cautious. If its your only offer, fine makes sense, but if you have other options, would consider those.
Good point. I wonder if it's one of those firms that operated as an independent sponsor for a few years in order to build a track record before going out and raising an actual fund.
This was going to be my point too. 7 years with an $200MM AUM, unless they’re raising a >$500MM fund in 2021, this is mediocre IMO.
However, some people do much better at smaller funds because of the freedom and responsibility. If you know you're one of those people, it doesn't matter what people online think.
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