Exiting PE: PE ---> Portfolio Company?
Hey all,
So I know most people here are looking to get into PE (godbless you all). I'm actually in a slightly different situation - I'm considering leaving my fund and going to one of our portfolio companies. I know the company well - I led the deal (diligence, documentation, structuring, etc), and have been very active on strategic initiatives.
I've come to realize that there are many aspects of PE that I dread. Maybe dread is too strong a word, but there are definitely parts of the business that seem more like tedious banking bull$hit versus actual value creation. Obsessing over a returns model that accurately reflects the complex waterfall structure in the event of a sale, answering the myriad of LP's endless questions, quarterly valuation updates, etc - I'm not quite sure how any of that is actually "creating value" - it feels a lot like administrative bull****.
Yeah i know the phrase "value creation" is thrown around alot, but I realize the work that I enjoy the most are the projects that I do in conjunction with the CEO, CFO, and other executives. Looking at how to penetrate a new market, potential new product development, international expansion, etc. I find that I truly enjoy these tasks...and when i think about it, they seem to be "real" and important issues.
Thus I find myself in this dilemma. Sounds crazy, but I'm beginning to think maybe PE isn't for me. I mean, in PE, how well do you really get to know your portfolio companies and "create value"? Does anyone really like the IB aspects of PE?
Little bit about me - I've been in PE for 3.5 years. Post MBA (top 2 bschool), IB pre-MBA.
hire me
I doubt many people like the admin parts of their jobs, but do you like the deal making aspect of your job more than the "value creation" part? If you still like the latter more, perhaps a portfolio management role might be of more interest to you, or getting seconded to a portfolio company might allow you to see what it's really like working for a corporation as opposed to owning one. It's probably the best way to test the waters. Have you considered consulting as an alternative career?
I'm in REPE as opposed to Corporate PE and don't really have an interest in the asset side "value creation" beyond how much money it will make, at which point I become VERY interested. I do enjoy the deal process though (sourcing, negotiating, even pitching my investment thesis to investment committees/LPs). I feel that I am an exception among most of my peers as they seem to "fall in love" (more like fall in ego) with the actual buildings/hotels, whereas I just see lease income streams, debt and capital structure waterfalls.
I suppose the short form of what I'm trying to say is, why care about creating value unless you can capture part of it for yourself? Isn't the endgame for CEOs getting paid?
Repellendus suscipit molestiae in aspernatur corporis et. Sunt qui magni sint cum sunt quis. Nisi laudantium est sed aut illo nemo quia perspiciatis.
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