by Gail McManus
3. June 2011 16:21
We’ve had a string of junior private equity investors with about three years experience through our door recently who were hired just before investing stopped and are now worried that they haven’t worked on a completed transaction. And they don’t know what to do. Should they move to somewhere where they’ll get more investment exposure or sit tight and hope it all comes right? They’re uncertain of the impact this will have on their career and are keen for reassurance.
If you have people in your team who haven’t ‘done a deal’ then it’s worth spending a bit of time with them to ensure they understand the value in the experience they’ve had over the last few years and can focus on the opportunity ahead.
When they ask our advice – we’d usually suggest they stay put. To be sure of access to more deal flow they will probably have to move to the lower mid market and this may not meet their future career aspirations. And moving in itself is a risky option. After all, their current team knows them, has a good sense of their ability and will be keen to see them succeed. Moving means that all those relationships, that trust and their credibility has to be rebuilt in a new environment. We also suggest that they adopt a pragmatic perspective and understand that there are real skills they can learn and experiences they can develop when they’re not investing. The simple three point list that we give to junior professionals to focus on includes:
· Make relevant, sustainable and additive relationships that can give access to deal flow now or in the future
· Make yourself visible in portfolio matters with good judgment, good practice and focus on enhancing value as well as protecting it
· Volunteer to support the fund raising effort – LPs need to know you if you are ultimately going to be successful in private equity in the long term
We usually find that just having the opportunity to air their fears and hear a few simple pointers as to how to focus their time moving forward, even if completed deals are few and far between, can provide reassurance and remove anxiety.
Gail McManus - PER
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