Help me think through an opportunity

angrybanana's picture
Rank: Monkey | banana points 39

Hi,

I have an opportunity to join a fund in London that is an activist (not so hostile) investor in UK and European small to mid-cap companies, and in most cases takes them private. The role is an analyst and I have around 5 years of experience in the HF industry and a total of 10 years of work experience. Here are further details:

  • It's not actually a fund just yet - it's been around only a few years and whenever they see an opportunity, they invest a bit of the partners' capital and get the rest of the capital (the bigger chunk) from a megafund
  • They invest in one company a year because between not having a committed fund and not finding that many activist opportunities, it can be tricky to do more
  • The two partners come from a sell-side background (M&A and wealth mgmt, 20+ years of experience each), and have told me that they have sufficient relationships to call capital on a deal by deal basis for opportunities that emerge
  • They are a team of 4 (2 partners, 1 analyst, 1 COO)
  • They are situated in shared offices in Mayfair

Can you help me think through the pros and cons of this opportunity? The comp will naturally not be a big pro here, so I'd like to hear your perspective on what kind of "optionality" this job can provide down the line? Is it to narrow a scope to spend the next 3-5 years of my career there, or is it the right thing to do to go ahead and specialize from now in an area like that? I do like activist investing I must say and am not a big fan of passive HF investing.

Any thoughts appreciated please.

Thanks!

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Comments (2)

Jan 1, 2019

I've worked for an activist fund focussed on European small caps; I'd be happy to share my view/experience. Feel free to PM me!

Jan 1, 2019