PE Exit Opportunity Following Restructuring Experience

cyclone4124's picture
Rank: Monkey | 46

Hey guys,

What do you think the chances are in terms of going into a private equity (MM not your KKR) following a few years at a restructuring shop ( think Alvarez, FTI, ALIX, etc.). Personally, I would figure that in addition to the financial analysis experience, the operational experience would be very applicable to the private equity industry.

Comments (25)

Sep 16, 2009

how are your modeling skills

restructuring is more like consulting

Sep 17, 2009

i am interested in this as well, except am coming from a MM IB restructuring group (think around jefferies or chanin but below lazard or blackstone). where have you seen these analysts exit to after 2-3 years? strictly distressed HF or any more general PE? Any firms in particular that like to pick up people with restructuring backgrounds? Any headhunters that i should talk to? And yes, I have extensive modelling experience. feel free to PM me.

Sep 25, 2009

bump

Sep 25, 2010

bump

Sep 25, 2010

bump

Sep 30, 2011

bump?

Sep 30, 2011

How would an analyst from HL Restructuring do for PE exit opportunities?

Oct 1, 2011

hl rest places just fine. You won't get tpg or kkr but you get very good distressed positions and also sometimes billion + buyout positions

Oct 4, 2011

Can anyone provide more info on exit opps for Alvarez, FTI, ALIX though?

Oct 5, 2011

Restructuring backgrounds are great fits with operational oriented PE firms, esp. those that focus on special situations (distressed, carve-out, etc). Every PE firm markets itself as operational, but some that I commonly see in hairy deals are Golden Gate, Platinum Equity, Marlin Equity, Gores Group, KPS, Sun Capital, Angelo Gordon... Larger funds like Bain Capital and Cerberus are operational oriented as well.

I would recommend you do a google search for special situations or distressed private equity.. there are tons of shops out there, especially when you get to the sub-$1bn AUM level.

Oct 5, 2011
PEguy2011:

Every PE firm markets itself as operational, but some that I commonly see in hairy deals are Golden Gate, Platinum Equity, Marlin Equity, Gores Group, KPS, Sun Capital, Angelo Gordon... Larger funds like Bain Capital and Cerberus are operational oriented as well.

I heard a sponsor describe themselves as NOT operators for the first the other day, I just about fell out of my chair.

Oct 5, 2011

Alternatively, you could focus on the portfolio/operational groups of PE firms. A lot of these funds have portfolio groups to support operational changes at portfolio companies. Of course, if your goal is to get investing experience, this would not be helpful. Some well-known examples are:

KKR Capstone is like 50% ex-BCG, 30% ex-McKinsey - they definitely hire consultants
BainCap Portfolio group is fairly new, but also has several MBB hires that I know of
Summit Partners also has a portfolio group, though I don't know as much about it

As posters above have noted, distressed funds are a natural fit for a restructuring background. If any of those have operating groups, it might be a good exit for Alix/Alvarez & Marsal

Oct 5, 2011

there exist PE funds that invest in turnaround & special situations and buy distressed companies. for example - KPS[/embed] Capital Partners

the lev fin experience can come in handy but I assume you are referring to a restructuring advisor such as HL or LAZ not the lev fin/restructuring desk of a BB.

so traditional buy out is usually a road less traveled. from what i've seen, buyside opps are usually at distressed hedge funds.

The world has changed. And we must change with it.

I'm making it up as I go along.

Oct 5, 2011

buyout shops are the more traditional route but you can definitely go into PE from restructuring (I did as well as a few of my friends in restructuring)...and it doesn't necessarily have to be to a distressed buyout shop.

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Oct 5, 2011

It is interesting to hear a position that is different than the common one of restructuring-> distressed HF/PE. Are the skills and modeling experience of a restructuring analyst be as easily transferable to healthy PE/HF as a similar individual coming from an M&A role?

Oct 5, 2011

I would also note that a lot of PE shops have distressed portfolio companies and are looking for people experienced in distressed situations. Haven't started recruiting for PE yet but that is what a lot of the headhunters are saying right now. I'm not entirely sure how that will play out in a year or two from now but it makes sense for PE firms to pick up analysts with restructuring experience now given how badly their companies are doing.

Oct 5, 2011

with regard to analysts with restructuring experience?

Oct 5, 2011

bump - didnt get any response to this the first time around

Oct 5, 2011

Hahahah, no ur pretty f'd coming from a MM and being in pidgeholing restructuring. Once ur in restructuring u stay there.

Oct 5, 2011
1styearBanker:

Hahahah, no ur pretty f'd coming from a MM and being in pidgeholing restructuring. Once ur in restructuring u stay there.

I gotta ask this...wtf is your problem?

You've been here what, 6 weeks? And you have almost 340 bananas? That averages out to like 7 posts per day. Do you even have a job?

Oct 5, 2011

Vulture funds

Oct 5, 2011
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