Would you think I'm an asshole?
Hi, I will be a freshman in college in September (in Europe). Since I want to break into the industry I have spent my time reading books, learning about business models, and reading 10Ks. After reading Valuation by McKinsey and doing a modeling course I am capable of creating what I think are decent LBO models. I would like to know if you think I will come off as an asshole if I approach PE associates on LinkedIn with a 15-page report with my analysis on a recent deal.
I am wondering if I should do this and if it would help me land an internship, thanks in advance.
Full disclosure: I still haven't done it as I am still wondering whether I should and since I still have 4 months until then.
You would look weird. please don’t.
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This is a retarded idea and you would look weird. Please do it and make it easier on the rest of us.
You seem earnest so I'll be helpful and honest. People want to hire people, not aliens / possessed vessels - the 15 page report idea you had would reveal you to be one of the aforementioned beings and therefore kill your chances.
Tl,dr: try to blend in and act like a normal human being
I think if you are asking the question there is probably a hint of doubt in your mind that this may in fact be a retarded idea. Trust that instinct!
I know you're already changed your tune in later posts, but technical ability won't make you more helpful than the next guy (especially since your 'advantage' is held >4 years before you'd actually need it) . For every PE desk, there are 10 analysts at banks who can easily run the LBO. Focus on developing your soft skills in college (you can definitely stay abreast of PE while there, but don't make it your life) and revisit your "technicals" when it comes time for PE SA recruiting.
I think if you approached MDs / Partners they'd view this as a high level of enthusiasm. Anything underneath their level would be cringe.
I wouldn't do that. Professionals don't have time even to look in-depth in their own models, so, even more, they wouldn't have time for some random guy approaching them on Linkedin. However, something like this can be useful during interviews. I am pretty sure that they will ask you questions about your knowledge/expertise, so then you can mention that you prepared something like that (maybe do a valuation for your own portfolio, etc. to sound more natural?). In my case, during my final round interview, I mentioned that I participated in CFA Research Challenge (preparing valuation report, etc.), after what interviewer asked me if I can share it with him, that was huge value-added.
So yes, you can do it, but please don't send it straightforwardly without being asked. Instead, try to direct the networking call or/and especially interview in this direction so that you would be able to share it.
Alright, I'll bite.
Look, PE is not a technically hard business. You're a freshman and read a few books, and you can do an LBO model (maybe it sucks, but I bet its fine). That's not the hard part.
Being good at PE involves sourcing a deal, negotiating with the sellers, negotiating with banks, being a resource for the management team, being a value add at the board meetings, building relationships with investment banks, negotiating with the buyers, understanding insurance, understanding accounting & QE reports, hiring counsel... shit like that.
Depending on the size of the fund, you do that at different levels. In the LMM/MM world, I've been doing that kind of stuff since I moved to the buyside. At a MF, that might not be your role as an analyst/associate. However, the person who can be good at that eventually is the archetype that gets hired on the investment team.
Use your time in college to become well rounded. Lead a student organization, throw some parties. If you want to read books and build models all day, try looking at being a quant for a public markets investor. The private equity skillset is the soft skills you really cant read about.