Interesting Scenerio
I am currently a senior at a non-ivy school with an interesting dilemma. I have been networking out east at the BB firms and have a few good possible interviews lined up. The purpose of getting out there is to get back into PE or to start my own smallcap. HF eventually. That is where the problem comes in...
I currently have worked for a lower middle-market buyout fund for over a year as an analyst (NOT INTERN). They can't hire me on full-time yet because it is still fund I, but they are trying to get me to work at a small IBank in town (I am talking deals around $20MM) so I can come back soon. I love the people I work with and know they will get through this PE downturn that will happen eventually.
I still want to get to a BB firm in NYC but am worried that I won't be able to stay in close enough touch with these guys and someone else may step in my spot. The fact of the matter is that I have a job with a small but stable PE firm right now and who knows what will happen if I leave. Could you guys offer some advice?
anyone?
why can't hey hire you bc its fund I? they have no committed capital yet? what makes you so sure they will be able to raise a fund? if they do have a fund and they love you so much, why can't they hire you?
so you're in school AND working for these guys??? sounds like an intern to me, please explain.
advice: if they don't have a fund yet, take a job in a BB if you can get it. if they do, i would question why they can't take you on? how much capital do they have? how many people in the fund? etc? if you can go straight into PE then do it. soudn like they don't want to pay your salary/bonus but like you and so are trying to string you along until they have a fund to pay you out of. I would just MAKE SURE you have an understanding that if you take a sub-par job in town that you are expecting to jumpship to join them as soon as they are done fundraising. still sounds kind of fishy to me.
They are a +$40MM committed capital fund. I am really not sure why they won't hire me on because the work I do right now is more of an associate role. I have sourced 4-5 deals already. None have gone too far, but we have taken good looks at them. Also, I don't do bitch data entry work anymore. A lot of capital structure and initial looks at incoming pitch books. My opinion around here is taken into consideration.
I have not pinpointed why they don't want to hire me on but I think it is a matter of principle. To work in PE, you have to put your time in IB. This is crap because I am doing some great work, but who knows? When the time gets closer and I have a few other offers I will talk to them more seriously about this.
Finally, yes I am in school and NOT an intern per se. They guys here do not like to call me an intern anymore (specifically told me this) but I still have to technically put in on my resume because I am in school. It is an annoying situation that I can't figure out.
it sounds fishy to me. go do BB banking in new york or a boutique in NEW YORK. then decide if you still want to do pe after one year of what is likely to be hell especially in BB. then if you can't get a pe job in NEW YORK or some other reputable shop in greenwich, la, sf, boston and your local hometown fund hasnt blown up yet, then think about calling them back.
$40MM is not too much to work with...think, even if they have a 2% management fee, excluding carry that is only $800k a year they are bringing in. is it only 2 other guys? I can assure you if they are splitting $400k each they don't want you to take $100k or more out of thier pockets. you'd prob. be doing more VC-type work anyway. Sounds like you have had a great experience though, and those guys could be great references for you.
Avoid the bucket shop, go to a reputable BB or mid market shop and then if they got a real fund together ($+200mm) then go back to them. otherwise, you're just wasting your time and they're using you. (as nice as they seem)
do yo know how to bild an operatig 3 statement model? lbo model? do you understand the intricacies of a companies capital structure? from debt to mezz to prefeered to equity? maybe go for a 1 yr stint in banking and look to transfer out to PE quickly. the guy i work with now pulled that off and you could point to this experience as an example that you're ready only after 1 yr in banking. use the recruiter database from this site...some of them are good for PE placement
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