Los Angeles Private Equity
Was hoping we could get an updated thread on the private equity scene in Los Angeles. I know it's definitely a smaller market than NYC/SF, but still would like to hear some data points on comp/culture/hours (all the usual).
Thanks in advance.
bump
Every firm's founding somehow related back to Michael Milken if they are based in LA. Hence the term BoM (Baby of Milken)
Tbf half of Wall Street IB/PE partners crossed paths with Milken at one point
Definitely true. An alumnus of my school worked at Milken’s family office in LA for a few years.
This has been covered pretty extensively. Summary of what I've read from other posts:
Clearlake: Real up-and-comer / has already up-and-come with the recent ~$7B fundraise and incredible returns. Heard second-hand multiple times that hours are bad. Unsure about people
Oaktree: Traditional PE fund that's probably the most famous in LA only with LGP. Good returns and program.
LGP: Similar to Oaktree, another famous one in LA. Heard good things about culture and progression (would be my top pick if given the choice, which i do not)
Marlin: Was a rising star with fund 1 and 2. Seems like things have tapered off with fund 4/5 showing sub-10% IRR returns. From prior posts, it seems like progression is very long (3 yrs Associate + 3 years S. Associate + 5+ years as VP). TBD on culture
Ares: High pay / bad culture. Some cite potential recent changes in culture but TBD if true
Platinum: Historically bad culture but apparently have turned things around. MF level in terms of size and returns.
Apollo: Same as Ares - high pay / bad culture / good name
Gores: Fallen star it seems. Lots of talent left to make Marlin, which is respectively struggling right now
Obviously a lot more color if you find all the posts here on WSO but that about sums it up in short.
Appreciate the detailed response, heard similar things as well.
OAK is not a traditional PE fund, they are distressed. They have one Distressed PE / SSG group. Mainly hire RX people.
I think by traditional he means more typical of what you'd see in the NY PE scene in terms of culture and WLB. Though you're completely right on their investment mandate / candidate criteria
APO culture is total garbo there speaking as an ex-APO NY associate. Smaller office, lots of facetime, pretty awful senior guys. None of it is conducive to a good working environment. Even their MBA summer associate opted to look for something else at the end of his internship
Marlin and Ares are both sweatshops
Current Ares employee here and have to say I disagree. You will grind when on a live process, but outside of that context the WLB has been much better than anticipated tbh. Don’t know why this site seems to perpetuate the sweatshop label (likely because it was a sweatshop prior to 2018)
Both Marlin Heritage and Core fund sweatshops? Was under the impression they were more chill being down in Hermosa Beach and all
What does comp look like at these shops?
Very insightful post. I was just wondering, do these P.E. firms recruit more like mega funds with on cycle recruiting and still require 2 years of IB or consulting?
Also none of the above has been fact checked so apologies if any of it is wrong. Just what I read here on WSO.
Anyone have info on seidler equity
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What does comp look like at these smaller shops for analysts/associates?
bump
Are you looking for insight on any particular fund?
Following
Bump, any info on Seidler Equity Partners?
Seems super top heavy...can’t imagine work life balance can be that great...
Lots of new consumer funds are started in LA. But they are quite small (probably sub $200m first time fund), so that’ll have to be something you’re ok with.
Any specific funds you are referencing?
I just get inbounds every once in a while from recruiters. I don’t really pay them any mind because I’m not looking to move to LA. Maybe someone more knowledgeable on here can help.
Anyone know anything about Lightbay Capital?
Interviewed with them previously, their mandate is seemed pretty broad (i.e. credit/turnaround investing to traditional buyout). They said their broad investing style as a good thing but not sure as a PE associate thats the experience you would want.
Think they’re planning on fundraising for fund II next year though not sure of the size of the fund. The VP/Principals I interviewed with seemed nice enough though can’t speak more about the culture
Thanks for that. Was their interview process fairly standard? Did you feel like they pay market?
Can I message you to ask about their interview process?
Never heard of them until this post. Good first fund raise, but there are so many partners/ senior people compared to 2 associates. Seems like a miserable experience for those associates.
Yeah, miserable. Horrible comp. Loser option.
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Does anyone have more color on Clearlake? Seems like they’ve had a good run in the past few years and I think just raised a 6 or 7bn fund. Would appreciate any insight into mandate, sector focus, culture, etc. From LinkedIn looks like they have some pretty pedigreed talent in terms of prior shops.
They're a solid firm. Spoke with them about a Sr. Associate role early 2020. Flexible mandate so they write both buyout and minority checks. Typically play in industrials and software/tech-enabled services. Sounded like they were aggressively scaling their team for the new fund. I only spoke to a handful of people, but they were all very pleasant to speak with.
Do you have an idea of comp there and do senior associates get carry?
Anyone have color on the culture/WLB at Freeman Spogli?
Great culture and nice people, but I hear they work you pretty hard.
Butterfly equity I think is out in LA too. Former Kkr cr guy. They do like food and sustainable stuff. Nice friend from college/banking is a principal there. Seems like good firm to work for.
also have plenty of good regard fro lgp and ares out there. Though maybe lgp might be a bit more lifestyle friendly compared to ares but just anecdotal from my personal knowledge and exp
Can I PM you? I'm very interested in Butterfly Equity!
A few others:
Seiler equity partners
riverside co
StoneCalibre
ClearLight
StoneCreek
Folks - do we know who are typically headhunters for LGP in LA? Thanks!
It's DSP.
Ew
K1 in Manhattan Beach
Levine Leichtman
Platinum comp is low relative to AUM. No carry given to VPs (don’t know of any firm that does this). Culture is very poor.
Avoid
Firms that do or don't give carry to VPs?
Yes, I was going to ask for this clarification as well -- most firms do or do not give carry to VPs?
And Platinum comp is low across the board, from associate to VP? Do you have any ball park numbers for their compensation?
duplicate post
Has anyone heard anything about Angeles Equity Partners? Comp? Culture?
Can’t speak for WLB but they are a sharp group and very active at least currently. Not too rigid like platinum or anything
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