http://www.theprivateequiteer.com/in-it-for-more-than-the-carry/ A vignette into the aberrant thoughts of a private equiteer Fri, 30 Jul 2010 12:08:39 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.theprivateequiteer.com/in-it-for-more-than-the-carry/comment-page-1/#comment-7284 Working for a mega-fund vs. mid-market fund | Ambition Magazine Fri, 30 Jul 2010 12:07:51 +0000 http://www.theprivateequiteer.com/?p=1687#comment-7284 [...] get much less than your initial calculations (see this post on my real-world carry calculations, Part 1, Part [...] [...] get much less than your initial calculations (see this post on my real-world carry calculations, Part 1, Part [...]

]]> http://www.theprivateequiteer.com/in-it-for-more-than-the-carry/comment-page-1/#comment-7218 The Private Equiteer Wed, 24 Mar 2010 11:24:32 +0000 http://www.theprivateequiteer.com/?p=1687#comment-7218 Larger firms are usually recommended if you're not looking for hands-on assistance with operations and strategy. That's not to say larger firms don't do strategy, but they're much more used to doing deals at a higher level. Rather than looking at potential investors from the perspective of mid market vs mega market, I'd consider them in terms of first-hand business experience. If you just need capital and contacts, go with the IB-type firms. If you're really looking to grow strategically, look for firms with proven entrepreneurs (founders who have exited on favourable terms in the past). Larger firms are usually recommended if you're not looking for hands-on assistance with operations and strategy. That's not to say larger firms don't do strategy, but they're much more used to doing deals at a higher level. Rather than looking at potential investors from the perspective of mid market vs mega market, I'd consider them in terms of first-hand business experience. If you just need capital and contacts, go with the IB-type firms. If you're really looking to grow strategically, look for firms with proven entrepreneurs (founders who have exited on favourable terms in the past).

]]> http://www.theprivateequiteer.com/in-it-for-more-than-the-carry/comment-page-1/#comment-7217 VitaNut Mon, 22 Mar 2010 11:25:56 +0000 http://www.theprivateequiteer.com/?p=1687#comment-7217 Hi, as an investee, what are the pros/cons of dealing with a mid market versus larger PE firms? Hi, as an investee, what are the pros/cons of dealing with a mid market versus larger PE firms?

]]> http://www.theprivateequiteer.com/in-it-for-more-than-the-carry/comment-page-1/#comment-7126 Working for a mega-fund vs. mid-market fund: The learning curve | A Private Equity Blog Sun, 17 Jan 2010 04:08:43 +0000 http://www.theprivateequiteer.com/?p=1687#comment-7126 [...] get much less than your initial calculations (see this post on my real-world carry calculations, Part 1, Part [...] [...] get much less than your initial calculations (see this post on my real-world carry calculations, Part 1, Part [...]

]]> http://www.theprivateequiteer.com/in-it-for-more-than-the-carry/comment-page-1/#comment-3906 The puzzle of private equity | The Private Equiteer - A Private Equity Blog Fri, 28 Aug 2009 06:12:50 +0000 http://www.theprivateequiteer.com/?p=1687#comment-3906 [...] trivialises how easy it is to do well in private equity. Sure, some people do very well, but in a previous post I showed how financially unrewarding life can be in private [...] [...] trivialises how easy it is to do well in private equity. Sure, some people do very well, but in a previous post I showed how financially unrewarding life can be in private [...]

]]> http://www.theprivateequiteer.com/in-it-for-more-than-the-carry/comment-page-1/#comment-3413 Show me the carry, part II | The Private Equiteer Fri, 05 Jun 2009 04:30:46 +0000 http://www.theprivateequiteer.com/?p=1687#comment-3413 [...] received a couple of emails in reference to yesterday’s post, In it for more than the carry. Some commented that a $100m fund is a micro fund. Some commented that they got a bigger percentage [...] [...] received a couple of emails in reference to yesterday’s post, In it for more than the carry. Some commented that a $100m fund is a micro fund. Some commented that they got a bigger percentage [...]

]]> http://www.theprivateequiteer.com/in-it-for-more-than-the-carry/comment-page-1/#comment-3407 The Private Equiteer Thu, 04 Jun 2009 05:09:46 +0000 http://www.theprivateequiteer.com/?p=1687#comment-3407 Yes, I'd say $1b is at the upper level of mid-market. I would also say your assumption for the fund returns would need to be lower. As soon as you start investing $100m per investee (maybe $500m EV), you'll be paying much higher multiples and hence getting lower returns. I realise that many mega funds still make great returns, but we're talking about averages here. A $100m fund may only be investing $10m at a time in businesses with EV of less than $50m. Yes, I’d say $1b is at the upper level of mid-market. I would also say your assumption for the fund returns would need to be lower. As soon as you start investing $100m per investee (maybe $500m EV), you’ll be paying much higher multiples and hence getting lower returns. I realise that many mega funds still make great returns, but we’re talking about averages here. A $100m fund may only be investing $10m at a time in businesses with EV of less than $50m.

]]> http://www.theprivateequiteer.com/in-it-for-more-than-the-carry/comment-page-1/#comment-3406 e Thu, 04 Jun 2009 04:16:59 +0000 http://www.theprivateequiteer.com/?p=1687#comment-3406 Would you consider a US$1bn fund mid-market? Understand its not mega but one would expect a bigger carry and not much more staff than a US$100m fund Would you consider a US$1bn fund mid-market? Understand its not mega but one would expect a bigger carry and not much more staff than a US$100m fund

]]>