Worth it to join no name MM PE Fund for the experience?

TrumpsLeftNut's picture
Rank: Chimp | 14

I currently work in corporate finance and came across an opportunity at a middle market no name PE fund in my area. It has strong reviews on Glassdoor but the salary is well below what I'd expect someone to make at a bigger fund. $50k base with $15-$25k bonus. If I worked here for 1-2 years would the experience help me get bigger/better jobs in finance or would the lack of a brand name be holding me back? Said another way, do companies value experience more than brand name? I didn't major in finance in college and honestly this would be the only way for me to enter PE without getting an MBA first.

Comments (12)

Apr 6, 2018

If that's the career path you want to take and that's your only option, then I don't see why not. Even if you get an MBA, it's difficult to enter the industry without pre-MBA experience.

Apr 6, 2018
TrumpsLeftNut:

$50k base with $15-$25k bonus.

Jesus. Is the fund in Alabama? Is it a $100MM fund? If not, I'd have a tough time seeing these economics as anything other than an enormous red flag.

Are you sure the position is for an investment role, and not fund ops or portco assistance?

    • 2
Apr 6, 2018

exactly - does not sound like an investment role if that's the comp

    • 2
Apr 6, 2018
Layne Staley:
TrumpsLeftNut:

$50k base with $15-$25k bonus.

Jesus. Is the fund in Alabama? Is it a $100MM fund? If not, I'd have a tough time seeing these economics as anything other than an enormous red flag.

Are you sure the position is for an investment role, and not fund ops or portco assistance?

The fund has 1.8b AUM, not sure of the average deal size. The role is an entry level analyst role that's heavy in financial modeling and analyzing prospective investments.

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Apr 6, 2018

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Apr 6, 2018

Have a feel the platform in question here is K1 based out of LA - they are a very solid shop, with a horrible, horrible comp structure.

Apr 6, 2018
Grindtime:

Have a feel the platform in question here is K1 based out of LA - they are a very solid shop, with a horrible, horrible comp structure.

Yeah it's K1. Everything about the shop seems good but when I heard about the comp I was like... what? How are they pulling that off?

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Best Response
Apr 6, 2018

Honestly I don't understand it myself, besides the fact that they typically don't hire ex-bankers and because of that employment decision, feel they can offer slave wages to folks who otherwise would have a hard time getting into the industry. Thing is, even more senior roles are below market - except for the partners who take the entire riches and leave scraps for the little guy. It's an odd dynamic for sure - I've had around 5-6 buddies work there at some point.

Besides comp though, if you want to get some deal reps under your belt and access into the industry, I say go for it. They see really awesome software deal flow, and I'm of the opinion that at a certain point, no one gives a shit about brand name except for the top tier of the top tier (and mega-funds). If you don't care about that, I see any PE role as a good stepping stone and beneficial to Bschool or w/e. I'm pretty familiar with LA buyside if you have any other questions - currently helping kick off fund 1 at a growing firm, getting carry but also trash comp (and limited insight into bonus), so I feel the pain. I can tell you that you WILL have trouble pulling the hours necessary for live deals making the shit they offer though, unless your more motivated than most. If I'm working past 10pm, on my salary, I am fucking livid lol.

    • 5
Oct 23, 2018
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