Which tech PE shop would you join?
Hi everyone,
Have seen a fair amount of recent activity on this forum on software/tech investing and likewise shops such as Thoma, Vista, Silver Lake, H&F etc.
Among those four, which shop would be the best to join as an associate (or even an analyst)? Not even purely considering PE track record and returns, but from a career standpoint as of right now. All are obviously great, but in terms of learning experience, exits, MBA, trajectory, comp, and all that, I'm seeing a lot of tradeoff between these firms.
For example, H&F may be viewed as the most "WSO prestigious", top-notch exits to other PE/HF, but has hellish junior culture and very little promotion visibility. Silver Lake also has insane culture but operates under a wider mandate than the other 3, giving analysts/associates exposure to more aside from just B2B SaaS (which certainly helps their exits). And then you've got Vista/TB which may be viewed as less prestigious than say H&F, with decent PE/HF exits, but have much clearer promotion visibility beyond ASO and no MBA requirement.
Just curious to hear people's thoughts on this forum, but obviously the reality is you take whichever one of these offers you can even get, since you must be the next Stephen Schwarzman if you get all 4.
Doubt Schwarzman will get looks w/o pre-MBA PE
You joke but I think I’ve seen interviews with him where he says that he would never be able to get a job at Blackstone today and the bar for junior talent is much much higher. Might have been one of the other famous founders
BUMP!!!
Bump - 1st year in tech m&a looking at these shops
Would add Genstar (generalist but lots of tech exposure) and FP if open to SF. Especially if you are optimizing for tech exposure and “better” culture. H&F tech mainly out of SF anyways so would want to come to that office.
Tiger Global
I’d say that all 4 of these names are pretty much on equal footing when it comes to Tech PE. Work in TMT banking right now and can tell you (from my limited experience) that all 4 of the names you mentioned are pretty much the exact 4 names that we see consistently on the buyer list for pretty much every software mandate. Any of these 4 are some of the absolute best spots in private equity, don’t think there’s a banking analyst out there in any group that’d turn down an offer from any of these guys. Outside of these 4, the drop off is pretty steep (except for maybe FP, which is also rapidly joining this “tier” of tech PE shops). Just my 2 cents.
permira is up there too imo
Permira most certainly not the same when it comes to Tech as these 4
All great seats, agreed, but I think OP was also comparing within those 4 in that upper echelon of PE. Also, you said these are some of the best seats in private equity, not didnt specify just tech PE? Would people take these shops over a BX APO KKR?
And back to the 4, as OP was asking about the differences, wouldn’t H&F have better HF exits, vs Vista/Thoma is likely a far better long term PE seat? How does an analyst/associate do the calculus in their head when the time comes?
If you’re sure you want to do Tech, think you can defensibly make the argument that these 4 seats are better than BX APO KKR. If not, probably not.
I work at one of these four (username is inaccurate -- I am current an aso2). The reality is that, even if you are interested in all of these firms, it's not very common to have an offer from more than one of these firms at a given time. Personally, I was just grateful to have my offer. I figured whatever minute differences between these firms exist I'll figure out when I get there.
To OP's question on what are the minute differences: Vista and TB are pretty similar in their focus on VMS. SL more of a focus on investing across the capital structure and media. H&F: focus on buying "above the bar" assets. The highest quality, widest moat, often growth-y assets.
Also, just wanted to add re: HF exist & Vista/TB. There is less representation of these firms in the HF world because over the past decade staying at Vista/TB has been so lucrative. In addition, historically, more of the exits have been oriented to other areas of private technology investing. I can tell you with 100% certainty based on personal experience that Vista/TB associates can get HF looks at both multi-managers and "top" single-managers (including V/LP/TGM).
You sure that the lesser representation of Vista/TB is simply from self selection on those paths being “more lucrative”?
What about how “playbook oriented” they are - would you say that slightly limits the associate experience and hence exits? ie you think despite all that, associates at those shops can get looks at any kind of HF (Tiger Cubs, Pershing, Citadel)?
If you are including H&F, I would include TA. According to ACG, TA did 46 tech platform deals and 358 add-ons over the past 6 years.
.
Is drop off steep for EU software players with American arms like Hg?
Thoughts on THL?
Thoughts on Siris?
Hard pass
What makes you say that
How do non-tech focused shops stack up to the above four, given there are tech / TMT specific associates roles at firms like KKR, CD&R, TPG, Carlyle and virtually all of the European MFs?
Some are better than others. For Tech, I’d say it goes:
Tier 1A: H&F, SLP, Vista, TB
Tier 1B: FP
Tier 2A: Permira, Apax, TA, Genstar
Tier 3A: TPG Tech, Carlyle Tech
Tier 3B: KKR Tech, BX
Then everyone else. I think TPG and Carlyle are the only 2 "non-tech focused" MFs that really compare to the heavy hitters in tier 2, nobody else touches the folks in tier 1A and FP.
From my experience / what I've seen from peers:
Thoma Bravo is a firm you want to go to if you'd like to stay in Tech PE. Associates at the firm are very heads down from what I saw during banking, don't get real exposure for a few years. Vista is similar to Thoma in the ways that I described, seen more exits.
I think the god-tier "tech" PE firm for exits is Silver Lake
Other good firms for exits WP, HF, and FP.
I would say if you're optimizing for SM HF exit go to Silver Lake, WP, H&F, or Francisco.
If you want to go to a pod, you can do any of these firms.
If you are optimizing for Khosla / Sequoia I'd go to a crossover fund like Coatue/Tiger, or a VC that regularly participates in top funding rounds alongside the firms you'd like to work for. Issue with that is getting a seat as an associate.
I rambled but that's how I've thought about it when i mapped out everything.
S
also TPG tech has good SM exits
Would Vista/TB associates be out of the running for SM HF? Or at some kind of disadvantage
I wouldn't say it's a disadvantage
If you look at Thoma Bravo, theres a few reasons someone might leave (1) they get to a point where they arent promoted so they go to another tech PE firm, (2) they want change of career/MBA so CorpFin Stanford GSB CorpDev, (3) get better opp to lead at another firm etc
I haven't seen SM exits (maybe 1 or 2) but not at the scale of a TPG, Silver Lake, Warburg
I don't think making decisions based on prior exits should heavily weigh your decision, if you land a role at Thoma/Vista/STG/Permira/Carlyle Tech should not be in any way disadvantaged -- if you really really want to go to SM (like really really want the most linear path) look at firms like Silver Lake/TPG as it would be way easier to network/reach out to people at SMs
Sr Asc at a 15bn+ fund doing tech PE
IMO the stratification for larger firms is
T1A: TB, H&F, FP, SLP
T1B: Advent, Permira, Warburg, Vista, TPG Capital/Growth
T2: TA, Genstar, WCAS, Bain Cap
T3: most other large MF PEs
Switch Vista & FP
… returns m8
and Insight Partners?
lol
Terrible list for many reasons, prime of which are: Advent Tech is a joke, Bain Cap tech is even worse, and TA is actually good at tech.
yeah TA is killing it as of late
Vista to T1A, TA to T1B
How's life at FP?
Really think you shoukd take a look on growth funds if you're really interested in tech. You'll probably see more disruptive companies/businesses than in a traditional PE firm. CAVEAT- if you want to do HF you'll probably be better at a traditional MF.
So for tech HF exits, having a seat at like Vista/Thoma would certainly be better than a TA or GA?
Does anyone know how many seats there usually are at places in TB, SLP, Vista, H&F, FP, Genstar, GI, etc.? How many are still available for 2025?
Also, how selective these firms tend to be in terms of background/prestige for someone at a well-known MM IB firm (think Blair/Baird/HL) in TMT?
SLP & Vista will have much fewer seats in general bc of their analyst program. The remaining are all top notch shops and to be quite frank, don’t think I’ve encountered maybe more than 1 person with a MM IB background who made the jump to those shops
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