Would joining a Series A funded start-up to assist with its exit (IPO/SPAC/Acquisition) help me get a buyside role?
I am currently a third-year at a boutique investment bank doing M&A. Previously big 4 CPA and currently working on my CFA . I've been trying to transition to a middle market LBO private equity firm for a while but haven't had luck.
I recently was reached out by a high-growth start-up to be their 2nd finance hire. The company has had 2 rounds of funding (~$15 million total) from high-profile VC firms, approx. 40 employees and apparently is growing quickly. They recently hired a former BB partner as their first CFO and this job would be his second-in-command assisting with the exit strategy. News articles indicate this signals the company will go public soon. I would be responsible for analyzing possibilities of IPO, SPAC, or being acquired while also examining different growth strategies and handling the accounting. I'm least thrilled about the accounting aspect, but excited about IPOs or SPACs since I don't get exposure to that in my current small IB firm.
This is very different from the private equity/investing roles I've been focused on. I recognize there are inherent risks in joining a start-up but the company has heat on it (lots of news articles and high-profile investors) and the CFO is highly respected investment banker (was basically hired for his connections to Wall Street). These reasons make it seem like a good move since I would make many connections and be heavily involved with the exit. I am hoping to leverage connections made in this role to get a buyside role.
Would taking this role completely side-track me from eventually ending up in a investing role? Adding a few more years to my already non-tradition background of Big 4 to boutique IB. Or would this unique experience be a differentiator viewed positively by a buyside firm?
How old are you? I think it would sidetrack your career somewhat but this also sounds like an interesting and attractive opportunity. Would make sure MMPE is the golden ticket you're looking for before you turn this down. Do not think this opportunity would differentiate you to lower middle market or middle market PE firms.
I'm 28. With my non-trad background and small IB firm, I'm not getting much traction with MMPE recruiting. So I'm thinking this opportunity could at least lead to an interesting/unique career. Possibly growth equity or VC.
I completely agree. I'd think more about the long-term. Long-term success in MMPE requires making partner somewhere that is doing very well (increasingly tough, and a big grind) or starting your own shop (extremely difficult). Not saying you should give up the dream but I'd err towards taking the bird in hand, personally. Plus this opportunity sounds really interesting, could be a fast-track to a CFO role at this company or another one.
Dude this sounds sick. Sure it might close some doors, but it's totally going to open some cool doors that you can't even see from where you currently are
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