Question for Current PE Associates/VPs

Currently an IB analyst at a small boutique and accepted an offer from a MM FIG PE firm. Feel nervous about my current job not preparing me enough for the PE role in terms of modeling and deal experience. Don't want to sink at the PE firm so wanted to ask current PE Associates / VPs here what I can do between now and my start to prepare myself. I feel comfortable with basic LBO modeling but lack in terms of creating detailed operating models (especially for FIG sub-verticals like specialty finance, insurance, fintech) and more complexity in LBOs (stub year, add-on acquisitions, earn-outs, complex mgmt. promote structures, etc.). Any advice, action steps, learning tools would be very appreciated!

 
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Well, you'd need to see some detailed FIG operating models and some decks. Those are hard to get.

I think the best thing you could do is reach out to a Director/MD at the firm you got the offer at, tell them you would like to sign an NDA with them to receive a couple of their old models and investment committee decks so you can dive in and learn how they think about investments, so you can hit the ground running.

Another thing you can do is try and get some FIG equity research reports, especially initiating coverage reports so you can understand some subsectors and what drivers are usually modeled.

A third thing you could do is find a FIG banker who could share some of his old dated materials you could review. Preferably a warm intro not a cold call.

Option 1 the easiest and most fruitful.

 

Thanks for the reply DZZ. Have already started looking at initiating reports for likes of SoFi and other public FIG comps to get a sense for Revenue and Cost drivers. Out of curiosity, have you done either options 1 or 3? Wondering how receptive my firm will be to option 1 - will they have 2nd thoughts on me given I'm admitting my lack of knowledge in the sector?

 

I did do option 1. A friend of mine counseled me to do it saying he had seen it many times. I didn't quite believe him but it worked. You're an analyst, you're not being hired on your expert knowledge, rather your ability and willingness to hit the ground running. This shows that.

 

Agreed with the above. Let them draft a pretty clear NDA. They are likely to have already gone through a similar situation, and you are rather showing that you are eager to add value straight away, which is a definite plus in one of the trickier sectors.

 

It might be me but that seems like a strange ask. Don’t want to be too eager and develop a reputation as kid who asked for an NDA prior to you starting...

Maybe ask what areas you should spend your time to prep, instead of leading with the NDA option?

 

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