Comments (29)

Jan 20, 2020

What was the process like making the jump to VC? Did you attend business school and use the available network to your advantage, or did you not go to business school and hustle a little more to make your way in?

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Jan 20, 2020

The latter. Although i considered attending B-school, which is definitely a good option. I put more elbow-grease in setting a quota for myself in sending out emails and reaching out to people in my peripheral network every week. There were obviously a plethora of "this will never work / go to b-school" but I found an interesting opportunity with perseverance and good timing. Additionally, I really do believe that the valuation skills that you learn in ER are a great preparation for a VC analyst position.

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Jan 20, 2020

That's awesome to hear, congrats on the success after the hard work. I hope to do the same post graduation.

  • Associate 1 in PE - Other
Jan 20, 2020

Thanks for doing this ! What constitutes a Micro PE firm? What types of deals are you doing, size, industry, business type etc. Thanks in advance!

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Jan 21, 2020

I see anything from $1mm to $50mm in EBITDA as a Micro-PE target; however I would imagine that's subjective and can differ from firm to firm. Usually staying away from innovative technology or life-science businesses. The usual suspects in terms of industry - service businesses, manufacturing, financial services, distribution.

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Jan 21, 2020

What is "micro" about the PE firm that you work for? It's not a common term, hence the question above.

Most Helpful
Jan 21, 2020

Fair question. It's definitely a self-applied term, not meant to be objective. For me it means that we are willing to attain "micro" sized deals as most of our deals come out at the lower end of the range described. Whereas many PE firms wont look at deals with lower than $5mm in EBITDA.

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Jan 21, 2020

Are you guys busy lately? I actually cover micro-mid cap, seem to be seeing more interest from PE lately.

Jan 21, 2020

Interesting. Nothing out of the ordinary on our end.

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Jan 21, 2020

PM'd you

Jan 21, 2020

Did you cover tech while in ER? How were you able to convince your PE firm that you had the appropriate transaction experience to do your job well?

Jan 22, 2020

I covered Small-Mid Cap Biotech. When covering the newly IPO'ed companies you really build an investment thesis from the ground up and need to understand valuation (although it's always abstract). Once you can build merger models, DCF and find time to take a course or two on LBO models you definitely have a shot at smaller shops - it's all about finding someone that is willing to take a chance on you. Its not the usual path, agreed.

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Jan 21, 2020

What about your VC experience made you want to do PE?
How'd you pitch yourself as a PE professional coming from VC?
Were these opportunities gotten through networking/recruiting? How was that experience?

Feb 9, 2020

bump

Jan 21, 2020

Thanks for doing this! Did you go into ER with the goal of breaking into the buyside, and you saw ER as a great way to get there either for recruiting, skillsets built, or both? Or did you love ER and saw it potentially as a longer term career/goal of something other than the buyside?

  • Research Analyst in ER
Jan 21, 2020

Thanks for hosting. Similar to others i'm curious if you could share more color about your transition from ER to VC. How did those conversations go and how did you convince a VC that you were a fit with a public equities background? Once you made the shift, how different was the lifestyle?

Jan 22, 2020

Is there a strategic edge in an industry or sub industry you invest in or is your main focus "strong cash flow generating asset-light scalable service businesses resistant to economic downturns with recurring revenue"?

What concert costs 45 cents? 50 Cent feat. Nickelback.

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Jan 22, 2020

Holy fuck. Saved lol

Jan 22, 2020

Good question tbh. I think there's a slight edge in strategy thinking about add on acquisitions etc and in control investments there's definitely capacity there. At the end of the day though this space of "1-50MM" can range from no CFO to needing a VP of Sales, etc. and simple things like that but holds the same investment deterrent like a restructuring or turnaround where there is naturally less people who invest because of 'process' and that just opens up margins for those in the space. Thoughts?

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Jan 22, 2020

sounds like the move is to start a firm targeting weak cash flow generating asset heavy non scalable businssess non resistant to economic downturns with non recurring revenue

Jan 22, 2020

Specific question, but what do you think about Riverside MicroCap? Have you heard of it? Recently got knowledge of it (and just general microcap PE space) and am starting to think there's actually a really great opportunity in the space even through recessions (because investments still 4-10x in the years after). Would love to know your thoughts.

Jan 22, 2020

Also is being in Micro PE only good at VP+ with the compensations structures generally?

Jan 22, 2020

Are you a search fund? Never heard of micro-PE before. This is a first

What's a LP base typically look like for a Micro-PE fund?

Jan 23, 2020
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