Just looking for the forum's impressions on Francisco Partners? I've heard they had a bit of trouble raising their last fund (got done at $2BN) and have heard mixed reviews on the lifestyle of the investment staff. Any data would be helpful.
Thanks in advance.
What’s It Like Working at Francisco Partners?
Francisco Partners is a West Coast tech-focused private equity firm. Over its 15+ year existence, the firm has invested in and acquired more than 200 technology and technology-enabled companies. While most insight on Francisco is a few years old, here were the latest impressions of the firm per WSO members:
- Lifestyle is bad, on par with a tough banking experience
- Look at a lot of investments
- Associates travel a fair amount
- Weekend work rare but depends on personalities
- If you're passionate about MM tech it is worth considering, although funds like Silver Lake or Accel KKR are probably a better experience
- Pre-MBA Associate all-in comp in 2011 was ~ $250k
WSO user @tubs" explains further for anyone interviewing with them:
I would be concerned about joining FP. Ask the associates what has been going on there. The senior guys there i hear are good, but overwork their junior team. Firms like FP play in the toughest part of tech buyout. Think hard as to where they sit in the chain.
- Be prepared to do a simple lbo model from scratch and read through docs to propose an investment case
- Different tech assets have different multiples associated with them... e.g., 90-100% SaaS can go from 3x rev to 6x rev., tech enables BS (with roughly 60% GM, and "recurring revenue model") can go from 6x EBITDA to 15x EBITDA (LTM) depending on IP and differentiation...
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lifestyle is bad, on par with a tough banking experience.
look at a lot of investments, associates travel a fair amount.
Lots of travel, high deal volume, . Lifestyle on par with other west coast firms...weekend work rare but depends on personalities. Not sure if previous poster has a dated view. Firm has a rule against weekend work although it is flaunted on occasion.
associate attrition is severe... disagree. I think the only comparable worklife firm is golden gate
pe_cogwheel...you have one of the most honest user names on here. Cracked me up.
haha one of my buddies went to school with a guy there... he says it's a bunch of Asians led by a few white guys
haha we just did an HBS case study on them. They got into the market at a bad time so their returns have been less than stellar
know a few people who worked there (quite recently) and quit. hours are pretty bad (esp. for middle market PE). second the point about high associate attrition. if you're passionate about MM tech it is worth considering, although funds like Silver Lake Sumeru or Accel KKR are probably a better experience
Accel KKR...have heard some rough things about the lifestyle there as well. As far as FP goes, have heard same on returns being a bit weak and a tough lifestyle too. The guy that used to run recruiting for them is a world-class a-hole, but it seems they figured that out and have someone else doing it now (but he still works there).
Silver Lake Partners & Francisco Partners (Originally Posted: 06/06/2007)
Silver Lake Partners and Francisco Partners are among the best Private Equity firms that are focussed on Technology. The analysts/associates at these two firms seem to be hired from across all the Investment Banks. I was wondering if anyone knew how the hiring at these firms is done ? Is it through a head hunter, or do analysts apply on their own in the second year ?
Also...can someone comment about the hours, culture, work at these two firms ?
Can't comment on Francisco, but Silver Lake uses headhunters. People at Silver Lake are, generally, rather cool, good people to work with.
So if some one is an analyst covering Technology at a BB and is interested to apply to Silver Lake...what would be the best approach ? Which headhunters to get in touch with ?
Chances are if you are at MS Menlo Park in Tech M&A a headhunter will approach you.
more like GS TMT
SLP uses Glocap and SG Partners
TZL,
If you are working for GS/MS and covering the Technology Group....but outside the United States. What would be the best way to apply to Silver Lake Partners ?
Is it possible to get in touch with the firm or the Head hunters you mentioned directly ?
What is the time frame for recruiting ?
Also...what is the compensation for an analyst/associate at SLP ?
Thanks
Francisco Partners Pre-MBA Associate (Originally Posted: 03/01/2014)
Can anyone shed light on what a pre-MBA Associate can expect as annual all-in comp? Is it competitive with megafunds?
~250k all in
Source: have a buddy starting there
Thanks for this. A little disappointing, I was hoping they would be in line with the megafunds.
That is roughly with the lower end of megafund comp... nothing to be disappointed about.
$250k is disappointing?? That's in-line with TPG and Warburg - just a bit below most other MFs.
Do get another data point to confirm, but I hope my info is useful; I'm not sure how much pay varies across associates there.
seems like most of the upper mm pe firms pay well vs. the megafunds (e.g. heard of very high pay figures for Leonard Green, kelso, ga, lindsay goldberg, GTCR, h&f, new mountain, crestview). any truth to that?
The upper-MM funds you list, just like the megafunds, exhibit a range of pay scales in the same area as the MFs, with perhaps a slightly lower median. Other than a couple known outliers, if someone tells you they are making considerably more than the $250k - $300k range for MFs, they are probably lying.
Francisco Partners Interview (Originally Posted: 10/24/2010)
Hey guys,
I have two 1st round interviews with Francisco Partners coming up. Any idea what I should be prepared for.
The recruiter informed me that one would be a technical and one would be a case. Any ideas around how rigorous the FP ones are?
i would be concerned about joining FP. ask the associates what has been going on there.
be prepared to do a simple lbo model from scratch and read through docs to propose an investment case (i.e., invest or do not invest and why, what would you pay, what is the return threshold for that kind of asset, what are the nuances associate with revenue model... i.e., recurring nature of maintenance streams, contract lengths, SaaS perpetual license models, churn etc.)
Different tech assets have different multiples associated with them... e.g., 90-100% SaaS can go from 3x rev to 6x rev., tech enables BS (with roughly 60% GM, and "recurring revenue model") can go from 6x EBITDA to 15x EBITDA (LTM) depending on IP and differentiation...
the senior guys there i hear are good, but overwork their junior team.
Firms like FP and Vector play in the toughest part of tech buyout. think hard as to where they sit in the chain.
Thanks, for the info. This is really helpful. I'm also interviewing with Battery which is more of a sourcing shop. And trying to compare the two opportunities.
I'd really appreciate some further detail on any potential issues with the FP role. I don't mind working hard at all but would be concerned if they work you hard just for the sake of running you into the ground?
Also my guess is that the type of interview you detailed was more of a 2nd round. The HH suggested that the two 1st round interviews would be 1 technical & 1 case (over the phone).
Any guidance on what kind of technical questions they will ask?
one of my interviews was a structured investment type of case, tracking returns to all the various stakeholders (equity, cvt preferred, standard debt) and drawing their payout curves
another was owning a portfolio of securities, what would you pay for them. (assuming xyz on yield, risk of default, etc.)
another was a standard simple lbo - here is the cash flow, how much leverage can you put on it, what kind of returns can you drive, what is the ~ irr (no calculator)
One was a simple case (company makes widgets, profits going down, etc.)
the other interviews (and the ones above included) were fit / experiential interviews.
have heard similar things as Tubs re: challenges at FP.
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