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May 31, 2024
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Bumpity bump
I mean everyone will have their own definition of "up and coming" but the Golden Gate spinouts are crushing it: Arcline (industrials), Percheron (consumer), and a newer one, Lone View (tech). Don't think I've ever seen Radial Equity mentioned on here but good name to keep on your radar. Incline is a strong MM name. One Rock is growing like crazy and keeps doubling fund size. Clarion is a true LMM player but their returns are great. MiddleGround is growing and has great returns.
Just curious - how do you know they are crushing it given they are new funds and have no meaningful exits yet? Thinking Lone View, etc.
In order to raise a new fund that's 1.5-2x larger without significant realizations you need to show some serious value creation in the current portfolio. Some of those I named have portcos that have grown EBITDA 4-5x already. Should at least be good/stable places to be and learn as a junior professional since if it all blows up eventually, you won't be the one losing out on carry.
Any further detail on Incline? For recruiting / exit ops does it matter what fund (flagship, elevate, ascend) you go to?
What is best way to identify these funds? If you end up at one is there any reason to jump ship unless performance deteriorates?
IMO the easiest way is just to keep a close eye on the industry news and see what new funds are spinning out of established MF/UMM players. If one or more people are coming from brand names and raising a sizable first time fund, odds are they're serious people. Could be lots of upside getting in early as a junior and yes, you'll get reps and can jump if things go south.
Thanks that makes a bunch of sense. Appreciate the response!
Small firm called Blackstone is doing well
They have been around for a while as a FoF, but would add partners group. Very, very fast growth in US direct buyout with 15b fund last year and made a bunch of interesting investments this year despite deal environment
They’ve bought loads of stuff at way too high valuations. Portfolio will struggle big time
The direct portfolio has had 20-25% irr for the past decade. They sold off most of their assets they “overpaid” for in 2021, and what they bought last year came in cheap. Lot of capital yet to be deployed in fund IV
Second this, know they have a couple of donuts they overpaid for
What‘s their associate and VP comp / carry nowadays? Heard it got bumped significantly.
Would say comp is now in line with top mm funds (~275-300as1), a little below market for MF standards, but denver location balances that out. carry kicks in at senior associate level.
Whatever chance people get to hype up Partners Group lol
I’m keeping my eye on distressed and deep value oriented shops. They tend to thrive in this market
Any names coming to mind now?
Following
Bump
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