| Topic Name: |
I-Banks prep VC's |
| Message Name: |
Comments |
| Date Posted: |
04/09/2005 |
| In Reply To: |
Hi,
I started recently in PE (in the infrastructure space). I was hoping you can provide some insight regarding how this kind of experience will translate to other kinds of PE in the future. Infrastructure assets that we pursue include assets in the energy, transportation, healthcare, etc. sector.
I get a lot of modelling experience where I am and am learning (slowly) structuring (legal and tax).
I am currently in Canada but would like to move to the US eventually. Do you know if this kind of experience will be valuable in the US.
Would the best/ most common route be to get a decent MBA and apply to PE in the US from there? Are most associates (pre-MBA) able to land PE positions after an MBA with another firm/ in another space?
Thanks for your help! |
| Message: |
I'm not as familiar with the infrastructure space, but I can provide some general insight. What I've found is most PE firms are looking for the following things: 1) LBO modeling ability and understanding capital structure (i.e. risk/return profiles of different security classes - Revolver, TA, TB, High Yield, Sr Sub, Convertible, Preferred, Common); 2) deal experience including a very good understanding of the diligence process and its pitfalls); 3) critical thinking ablitity - SWOT analysis and investment appeal on a prior deal or industry with which you've had experience; and 4) general fit with the team and communications skills. In terms of infrastructure, if you can explain your modeling experience and investment rationale for the deals that you've closed, then I think that would make you marketable to other late stage PE firms. However, it will be somewhat less marketable than traditional LBO experience mostly because your investment criteria is somewhat different. Correct me if I'm wrong, but you are not as concerned with evaluating/backing a management team and do not deal with companies operate in competitive environments. That being said, I think this can be overcome during the interview.
However, if you do not have principal investing experience (i.e. buyside) prior to your mba, forget about applying to a PE firm post-mba, regardless of your credentials. There are simply too many candidates that have already done IB/mgmt consulting and then PE that you are competing against for relatively few positions. This phenomenon is something that has evolved over the last 2-3 years, but is becoming the norm. Finally, where you get your mba is equally important. Just look at the number of bios with HBS/Stanford/Wharton on any PE firm's website and that should tell you alot about the qualifications for a US PE firm. Hope this is helpful.
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