Edgewater Capital, which raised $185 million for its fourth fund just under a year ago, is out searching for human capital this time in the form of a new analyst or senior analyst.
In this role you’ll have an opportunity to dive into deal modeling, deal management, and data room management–see more details here. You’ll also conduct market research designed to pave the way for fresh investments in specialty chemicals, life science, advanced materials and engineered components, as well as to improve the performance of portfolio companies. Candidates should have either one to two years of investment banking experience or two to three years of transaction services or other relevant experience.
The newly created position reports in to Partners Bob Girton and Pete Ostergard. Day to day you’ll work under the tutelage of Associates Mack Doyle (pictured) and Richard Kertis and also interact with everyone on the staff from top to bottom.Said Doyle: “All of those folks have been instrumental in developing me personally and have taken the same approach with the senior analyst that we have currently.”
MiddleGround Capital, which closed its debut fund late last summer above it hard cap, plans to launch a search for a junior-to-mid-level professional to work on deal origination and investor relations.
The ideal candidate would have three to eight years of professional experience and a background in a related field such as investment banking, private equity or management consulting. Christen Paras, head of business development and investor relations, said that the search “will be getting kicked off pretty soon.” The new hire will report to Paras (pictured).
MiddleGround Capital has been on a deal-making, fund-raising and hiring tear since its founding in March 2018 by Partner and CCO Scot Duncan, Partner Lauren Mulholland and Partner John Stewart.
Ever wonder why so many private equity firms strive to raise ever larger funds? Simple. Larger funds generate more income–more management fees for certain, and more carried interest so long as their deals turn out to be sufficiently profitable.
More management fees translate into higher individual pay, since firms don’t hire at the same pace that they expand their assets under management. And that has led to some remarkable differences in pay for folks doing similar work at large and small shops. More evidence for these disparities comes from the 2019 employment report released by Columbia Business School this fall.
You can’t blame small private equity shops for paying less in salary and bonus than the big ones. They simply don’t bring in the same level of management and portfolio-company fees. They can’t support comparable payrolls.
So they make up for it by being more generous when it comes to allocating carried interest, right? Well, not so much, according to the 2019 Carried Interest and Compensation Survey, now in its 12th edition and published by PE Professional.
After a few years on the job, you may feel that considering options outside your firm is akin to “cheating on a significant other,” said Chris Magill, founder of executive recruitment firm Alternative Investment Staffing LLC.
But “always be open-minded,” advised Magill, and don’t be afraid to network with an eye toward career advancement. If a recruiter sends you a personal message–and not a mass mailing that looks like it went to 20,000 people–take the call. “Ninety percent of candidates I place told me they weren’t looking when I [first] talked to them,” said Magill (pictured).
In his early career José Miguel Guzmán has worked in positions at one of the largest PE shops in the world, and one of the largest pensions–putting him in a unique position to compare and contrast the experiences.
From 2013 to 2016 Guzmán served as an associate at New York, New York-based Cerberus Capital Management. Then, from 2016 through earlier this year, he served as a private equity investment officer for the New York City Employees’ Retirement System. I caught up with Guzmán this week to get his insights into the advantages and disadvantages of working for GPs and LPs. Below is a record of our conversation, edited for length and clarity.
Women make up about one in five employees at private equity firms around the world–far from parity but still an improvement over two years ago when data providerPreqin last studied the question. At senior levels, women make up barely more than one in 10.
According to a fact sheet released in advance of its full report, Women in Alternative Assets 2020, Preqin found that in the two years since its 2017 study, the percentage of women in private equity has grown to 19.4 percent, up from 17.9 percent–see chart above.
Jay Heilbrunn, president of The Distributor Board Inc and a director on the boards of private companies and organizations over the years, recalls a board meeting at a company whose biggest customer represented a substantial slice of its business.
“What’s the plan for taking $2 million out of expenses next week?” Heilbrunn recalled asking the managers. “They kind of looked at me like this is really a strange question.” Heilbrunn said he persisted: “Well, when this customer leaves, we’re going to have to jettison $2 million of expenses, and where’s it going to come from?”