Which Job Would You Chose? - Multiple PE/VC Offers
Hey all,
I wanted to try to spark some conversation to help me think through a few recent offers I've received. Really curious to hear what you guys and gals would do based on your interests:
- Established Single Family Office - Mfg. Industry Focus Private Equity: Targeting Lower Mid Market, avg. EVs of deals $40-$100M+. Responsible for all deal related tasks from sourcing through close + helping monitor and manage portfolio, taking a bit of a strategic operations role within the portfolio too.
- Established Single Family Office - Multi Strategy (Real Estate, Public & Private Markets etc.): First 2-3yrs will be focused on a single portfolio company, sourcing bolt-on/expansion acquisition opportunities, as well as strategic level support for the portfolio company. Potential to shift into the broader Private Market strategy after those 2-3yrs.
- New Single Family Office - Brand New, No Clear Strategy: This is the first hire outside of the Family. They need support managing the FO and finding opportunities. It's a small capital base, but the family is young and willing to take on a lot of risk to grow their wealth. The family wants to incubate companies, as well as source VC deals, and potentially looking into PE/Acquisition opportunities as the they grow their capital base. Essentially, this role lets the family focus on their own startups, while the "Analyst" manages the entire portfolio (Sourcing, Monitoring, etc.) But also includes some operator responsibilities, helping portfolio companies too.
So... 3 different things. Which would you take, and why?
Before I share my own opinion. Can you share a bit more for why you’d consider each opportunity? Curious to hear what appeals to you / makes each role attractive (comp included). It’s clear that you’re focused on the family office space. Depending on the family you’re working with, it can be a really good gig that opens up the door to some great network and much more.
Well, first off let's assume comp is the same. What's more important to me is long term potential. I want this next role to be my "home" for the next 5-10yrs, perhaps beyond.
Thoughts about each:
As with all family offices, there's no clear indication if the role could ultimately lead to and end game position, "partner" or "CEO" of the FO? I feel that of the three, the third job presents the greatest opportunity to take on a ton of responsibility up front, with a clearer path to "running" the FO in the future, especially given how new it is.
I think there's a lot to consider. Option 2, is the last choice as you mentioned, so I would probably put that to the side for now. As I look at option 1 & 3, i think it comes down to what are the things you value the the most.
Option 1 appears to be the most attractive opportunity assuming you'd like to focus on PE. Furthermore, it looks like you'll have the opportunity to have an "unconstrained" mandate as you grow with the firm. I will say this, capital duration is important. Seems like they're more established FO and have a better idea of how they want to utilize you in this role. Any reservation on the family and team?
Option 3 seems very interesting. However, the appeal to option 3 can vary given your personality and long-term interest. How do you feel about joining a team that isn't really structured and starting off at the analyst level and being tasked with possibly building an infrastructure? Some people like a little bit of hand holding so they can have an idea of what is needed of them, while others are ready to roll up their sleeve and the uncertainty of the role is what excites them. The other point to consider is moving out west. How do you feel about that? this opportunity seems like it can be really good if things work out well, but it can also be pretty bad if things don't work out well. Also, what do you know about this family and how do you feel about the family?
Just a few things to consider.
Following
Alright so focusing on Option 1 & 3:
Firstly, how should I be evaluating the families? What would you consider being the "ideal" family to work alongside?
1. Yes, I like the weight towards more traditional PE, but the capital is patient... no exit strategy in place, nor is there pressure to do a dozen deals a year. The family is very nice, and have decades (generations) of experience in the industry, as well as an established network, which I think is great given I can learn a lot from them.
3. I am very excited by "uncertainty", that's part of investing isn't it! That said, I'm basically making a bet on myself that I can "build out" the family office, which is something I've never done before, and that the investments I make, and the ventures the family pursues are successful... My only reservations towards the family are that they are very young.
I don't think there is an "ideal" family to work for. Personally speaking, the way i would assess the situation is:
- Who in the family is involved in the day to day operations? Is the FO ran by a few members of the family or are they a bit more institutionalized with a non family member leading the efforts and the family members are simply involved at the board level. Essentially what I'm getting at is if there is a ton of family oversight or the family allows the investment professionals do their thing. I interned at a FO back in college and the family was very hands off and allowed us to handle the investments without much disruption and would basically be updated on a monthly/quarterly basis.
- is the family reputable and well known? (relevant when it comes to expanding your network and ability to see opportunities)
- what's their approach to investing (seems like they have a long term patient capital approach - def pros and cons)
There are a number of things to assess but def hard to do only during the interview process and probably easier to do once you're inside.
As it relates to option 3, there's def a lot to consider. It can be really good, I would imagine you'd be learning a lot and working quite a bit. Any idea of the capital base or size of the family's wealth? just curious
Did you intentionally target SFOs?
Yes
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