| Topic Name: |
Should I take this PE offer? |
| Message Name: |
Question for PE Guy |
| Date Posted: |
04/29/2003 |
| In Reply To: |
I'd appreciate other Vaulters' advice on my situation. I have three years of experience with a top 3 I-bank. Last week got a verbal offer to join a small, relatively new (couple years) PE fund focused on turnaround investing. Just partners so far; I'd be the first junior guy, focusing heavily on sourcing deals over the phone (I guess sort of like what TA/Summit do) but with the potential to grow in responsibility along with the fund.
Regarding compensation, the partners are talking about a $50K base + $20-30K per closed deal (the idea is to do a couple deals per year). Plus some carry, though it really doesn't mean much right now due to the fund's newness (the partners, who each have a significant amount of PE experience, aren't paying themselves any salary right now). They do have solid LPs backing them though.
Obviously there's meaningful risk joining a new fund, and the base salary is a bit low than I'd hoped (Though infinitely greater than the partners'!). On the other hand this would be my break into the industry; I figure that even if the fund totally tanks in a year, I'll have that experience to add to my r??sum??. What do you think?
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| Message: |
I think this role sounds quite interesting. My only concern is the low base pay. I guess it depends where you are based. If it is a east coast city I think they should pay some more. But if you are in Atlanta or somewhere cheaper it doesn't seem so bad. FYI- you could maybe ask for a percentage of the transaction rather than a flat fee then when you source a deal you really rake it in?
What other VC firms take on associates and make them focus on sourcing/originating deals. I have seen the URL of Summit Partners and am interested in the firm. I am looking to draw up a list of firms which take on junior guys to originate deals. If you know of any others please let me know.
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