Private Equity Fund Size
Initial close around $125 million, one founder, two vps and one associate. Would this be a good fund to work at from a fund size perspective?
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What is the founder’s track record? How of the $125m did the founder commit?
Founder didn't really have prior IB/PE experience. I am not sure how much he committed out of his own pocket.
probably around 5%
So far doesn't sound that appealing. It would be better if the founder has an investment track record that a) you can learn from and b) helps (as someone else pointed out) to raise institutional capital.
What type of investing? What’s the “non-IB/PE” background? An exited entrepreneur of a name-brand startup doing VC / co-invest deals with $125M from CALPERS and Yale could be a solid setup, but a former surgeon trying to do distressed energy deals with friends and family money is a very different story.
At any rate, it’s a small fund and the lack of background is a yellow flag (potentially red depending on what their background is), but it isn’t inherently a dealbreaker.
I’d look into the founder’s track record, the mid-levels’ backgrounds (a chairman-type founder with two rockstars under him isn’t necessarily ideal for a new fund but could still be enough to get off the ground), and who the LPs are (are there a couple anchors who wrote $25M checks but could scale up to $200M checks over the next fund or two, or are they HNW friends who cap out at a million… the latter makes it very hard to grow the fund)
Thanks a lot. Mind if I PM you?
Feel free
Also depends on what you want to do… if you’re hoping to do 2-3 years and rocket off to a Tiger Cub, then the $125M fund is going to be a hurdle. If you want to get your hands dirty in microcap rollups hoping to turn out 4-5x MOICs on $15M checks with a 5% carry stake as a VP, then it could be perfect
Well said
Would like to see some more comments.
PE is an extremely crowded space - do they have a specific angle or expertise? Unless you're getting a meaningful share of the economics, I would be weary of a vanilla LBO fund lacking any sort of track record or proprietary sourcing capabilities. IMO juice is not worth the squeeze for a vanilla fund just competing in banked auctions.
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