Private Equity

[Super_Geo]

Any Beyonders in PE?

Was hoping to get some insights on the industry in Calgary. Outside of Arc/Kern are there other big players in town? Is it better to saddle up with one of the smaller guys if they're looking? Any info would be greatly appreciated!

[Mckenzie]

I work in this world. The other one is Tri-West, that just closed a huge fund. I'm with a venture growth fund, which does some smaller PE type deals, but is not a Bain Capital and we have zero interest in the energy space. That being said, I know most of the people/companies across Canada in the space. The industry is very hard to get into and Arc/Kern/Tri-West would be tough to land a job at. I know that Tri-west and 32 Degrees Capital are looking for someone fairly entry level. It is a long road to riches given that you need to get into the carried interest before you get a payout. On a 10 year fund life, that could be a long time. But it's a way better gig than any public market job and the hours are much better than banking.

Shoot me a message if you need more details.

[Marsh]

Mckenzie, if you dont mind, could you share how you broke into the industry? I've always been interested in PE but like you said its difficult to break into. PM if you dont want to post it up.

Thanks

[Mckenzie]

Sorry I dont get email notifications for some reason. I worked at a Big Four accounting firm and one of the guys who left there and landed at a shop in town knew the MD of the firm I am at now. I stayed in contact with him for nearly 2 years and interviewed about 4 times before I actually landed the job. My biggest advice is that you need to get involved in the venture / PE community and meet people in droves. It is HIGHLY network driven.

Check out the CVCA and VCAA website where you can find all the big players in Alberta and Canada. Pick your niche and then start trying to connect with them. They typically hire people with advanced degrees- CA/CFA/MBA/P Eng/ PhD/LLB etc. Its actually ridiculous the pedigree of the MDs in this industry, but I guess a small supply of jobs means they can take cream off the top.

[civic_ek4]

hi Mckenzie, what type of work do you do? accounting and valuation?

[Mckenzie]

Fund accounting, valuation, LP reporting, fundraising, sourcing/negotiating deals, executing transactions, fund administration duties, etc. You wear a lot of hats in this industry.

[civic_ek4]

i figured A&V but sourcing/negotiating deals.....what are the fund size and it's minimum, onshore or offshore?

i've been working in the fund admin for the past 5 yrs in HK and things are really tough, thinking about moving back. like everyone else my company is shifting some work to india so this makes me think even harder!

[Mckenzie]

It's all onshore and the fund size is just under $100 million. We are outsourcing a lot of the financial administration to a back office provider based in NYC but I still oversee everything.

Nothing is getting easier these days!

[civic_ek4]

Ic, size isn't bad.

NYC, is that the final the destination or would it be India or Philippine?

Yup, nothing is getting easier..........

I've been looking for a new job for the past year and it's so quiet luckily I was given a very generous raise and an adequate bonus! But our so called knowledge center in Pune will probably be fully operational within this year so I need a way out.

[chibwack]

Pretty shitty feeling knowing you're trying to break into such a small industry... I've just started working on the cfa designation (L1 in december). HOPEFULLY finish level 3 in june '13 and at least have somewhat of a chance to get in to the field. Until then I'll just keep on doin I guess.

[civic_ek4]

Well, you can always start with audit and work your way up to manager grade. Then take on a cayman job and since the island is so small you can easily meet the big boss! Few more drinks and you can land yourself a job in the west again. Only if things still work like this.......

[Mckenzie]

It is very much connections based there is no doubt about it. I didn't apply to this job from monster.com that is for sure. For a list of current openings, check out the CVCA careers website to get a better sense of roles, responsibility and remuneration. http://www.cvca.ca/careers/

There is not a chance that our back office will be outsourced further to Asia. The group is called Augentius and they are quite a big organization with offices everywhere.

[Mckenzie]

For example- here is posting for BDC VC analyst:

Education and Experience - Bachelors degree in Commerce with a professional accounting designation, preferably CA - 3-5 years relevant experience preferably in a financial institution/financial industry Skills and Knowledge - Strong financial, accounting and analytical skills - Advanced level of Excel and PowerPoint - Knowledge of the Venture Capital industry, an asset - Sense of urgency, able to prioritize and to work independently - Strong time management and organizational skills - Strong teamwork skills - Customer service focused - Good written and verbal communication skills - Bilingual

Please apply on line at www.bdc.ca/careers , Job Number 55956, prior to May 29th, 2012 At BDC, we value diversity in our workforce and encourage all qualified candidates to apply. We appreciate all responses and advise that only those candidates selected for an interview will be contacted. Proud to be one of Canada’s top 100 employers

[civic_ek4]

In HK, most of these work are done by law firms - Maples, ogier....... they seem to scoop up more business than Citi and others

When you outsource, what do you look for? The name, sas70 type of credentials or cost?

[Mckenzie]

I suppose a combination of all of them- many new entrants are trying to play in the space with no experience. They have to be PE/VC fund specific and SAS70 is a huge stamp of approval. One of the firms we looked at was also quite expensive and didnt seem to have the depth of experience for us. The other thing was the technology element, where our LPs get a portal to access their data online and that is super convenient for us and a huge value add to the LPs.