Least modeling-intensive PE firms

Mr_Palmer's picture
Rank: Chimp | banana points 13

Just curious as to which PE firms have a minimal amount modeling (relatively speaking)? Growth equity, FoF (but that doesn't really count)...any others?

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Comments (20)

Best Response
Jun 22, 2017

What makes you think growth equity requires minimal modeling? You won't spend hours cranking 3 statement operating models, but you'll be balls deep in building detailed waterfalls and analyses for things like customer churn, MRR, staffing forecasts, cohort analytics, etc. which is a bigger pain in the ass than LBO modeling.

The same goes for FoFs; they often build their own lbo models for GP coinvest opportunities. Try to get up to speed on modeling (it's not that difficult) because a buyside gig with minimal modeling will be hard to come by,

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Jun 23, 2017
ebit_dab:

What makes you think growth equity requires minimal modeling? You won't spend hours cranking 3 statement operating models, but you'll be balls deep in building detailed waterfalls and analyses for things like customer churn, MRR, staffing forecasts, cohort analytics, etc. which is a bigger pain in the ass than LBO modeling.

The same goes for FoFs; they often build their own lbo models for GP coinvest opportunities. Try to get up to speed on modeling (it's not that difficult) because a buyside gig with minimal modeling will be hard to come by,

I know someone who worked at a growth equity firm and was a bit surprised when he said there was actually very minimal modeling, but maybe his experience was unique.

So I guess it's safe to say the real answer is: none?

Jun 23, 2017

It's less modeling in the sense that you won't spend all day building lbo models based off CIMs that bankers send you, but yes, basically every single junior role in finance will require significant excel work at the junior level. On the VC/GE side, some of the waterfalls can get pretty complicated once you start building in various layers of pref, each with their own liquidation preferences, conversion rights/participation (or lack thereof), warrants, accruals, etc.

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Jun 22, 2017

If you're not a big fan of modeling, IB/PE is not the right route for you. Consulting would be better but the consultants I know still do a fair bit of modeling.

Jun 22, 2017

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Jun 22, 2017

Corporate law

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Jun 23, 2017

VC and GE but GE can still have a decent amount of modeling, it just won't be as complex as in PE because you don't have to worry about debt. You also usually aren't owning or operating the company in GE so you don't need to build any operating assumptions.

As everyone has said though, modeling at a base level isn't that hard. Invest in spending time on doing a basic modeling program and then firms will usually teach you from there.

Jun 23, 2017

Which hedge funds do not use excel? I'm not a number type of guy.

Jun 24, 2017

Madoff's

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Jun 24, 2017

You're not a number type of guy, and you want to work for a hedge fund...?

Jun 24, 2017

A lot can be said for "going with the gut", right?

Jun 24, 2017

If you're not a numbers guy and you want to work for a hedge fund, the mail room is probably gonna be your best bet

Jun 24, 2017

I'm just bullshitting you. I work in fp&a at a f500.

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Jun 24, 2017

damn I can't believe I missed that, I'm usually good at spotting that shit hahaha

Jun 24, 2017

Yeah. If you read much of the shit I spew on here I am almost never serious.

Despite being a troll/joking on here all of the time I do legitimately appreciate the content. There are a lot of interesting threads that contain candid insights you will not find elsewhere in regards to finance. So don't let me distract you! ;)

Jun 26, 2017

You trying to avoid modeling is very telling of what kind of professional you're going to be in this field. Good luck, you're going to need it.

Jun 26, 2017
ledger123:

You trying to avoid modeling is very telling of what kind of professional you're going to be in this field. Good luck, you're going to need it.

I was going to say... do you really want to join a firm that does minimal modeling... the answer is obvious

Jun 26, 2017

These guys probably don't do that much modeling:

https://www.calpers.ca.gov/page/investments/asset-...

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Jun 26, 2017

Lolllll what a mess

Jul 3, 2017