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Fund Formation vs. M&A
Posted: Wed Aug 18, 2021 5:26 pm
by Anonymous User
For a V10, which one:
is easiest to become partner (is it easier to bring in business in one practice versus another/is there more demand)?
has broader or better exit options (what kind of exit options exist for each path)?
has more firedrills and unreasonable people/which one provides predictability?
what type of person or personality enjoys the practice and would be good at it?
Re: Fund Formation vs. M&A
Posted: Wed Aug 18, 2021 5:59 pm
by Anonymous User
Source: Current funds associate
Easiness to make partner is very firm and practice specific. My guess is that funds maybe is a newer/faster growing practice so may be easier to make partner but that could all change in 5-10 years
Exit options depends on what you’re looking for. M&a probably has wider exit options since you could get exposure to a lot of industries. Funds will be more limited since you’re looking mostly at exits in the asset management industry but that industry is also extremely high paying.
Lifestyle of the funds practice is significantly better than m&a. At top funds shops you will work similar hours to M&a overall but your hours will be fairly consistent on a weekly basis. M&a can have a lot of last minute or weekend fire drills. Almost never happens in funds since deadlines tend to be fairly transparent. I would guess that the retention rate for mid-senior level funds associates is much higher than M&a for that reason.
Personality is very firm/group dependent, although I’ve found funds lawyers are generally very collegial. The nature of the practice is much less adversarial than M&a since you do a lot of repeat deals with the same managers/investors and your clients have a strong interest in keeping their counter parties happy since it’s a relationship business.
Re: Fund Formation vs. M&A
Posted: Wed Aug 18, 2021 6:02 pm
by the lsat failure
Anonymous User wrote: ↑Wed Aug 18, 2021 5:59 pm
Source: Current funds associate
Easiness to make partner is very firm and practice specific. My guess is that funds maybe is a newer/faster growing practice so may be easier to make partner but that could all change in 5-10 years
Exit options depends on what you’re looking for. M&a probably has wider exit options since you could get exposure to a lot of industries. Funds will be more limited since you’re looking mostly at exits in the asset management industry but that industry is also extremely high paying.
Lifestyle of the funds practice is significantly better than m&a. At top funds shops you will work similar hours to M&a overall but your hours will be fairly consistent on a weekly basis. M&a can have a lot of last minute or weekend fire drills. Almost never happens in funds since deadlines tend to be fairly transparent. I would guess that the retention rate for mid-senior level funds associates is much higher than M&a for that reason.
Personality is very firm/group dependent, although I’ve found funds lawyers are generally very collegial. The nature of the practice is much less adversarial than M&a since you do a lot of repeat deals with the same managers/investors and your clients have a strong interest in keeping their counter parties happy since it’s a relationship business.
Mind PM'ing me?
Would like to ask a few questions! Also, could we tack on Banking/Debt Finance as a practice group as well?
Re: Fund Formation vs. M&A
Posted: Thu Aug 19, 2021 2:20 pm
by Anonymous User
Anonymous User wrote: ↑Wed Aug 18, 2021 5:59 pm
Source: Current funds associate
Easiness to make partner is very firm and practice specific. My guess is that funds maybe is a newer/faster growing practice so may be easier to make partner but that could all change in 5-10 years
Exit options depends on what you’re looking for. M&a probably has wider exit options since you could get exposure to a lot of industries. Funds will be more limited since you’re looking mostly at exits in the asset management industry but that industry is also extremely high paying.
Lifestyle of the funds practice is significantly better than m&a. At top funds shops you will work similar hours to M&a overall but your hours will be fairly consistent on a weekly basis. M&a can have a lot of last minute or weekend fire drills. Almost never happens in funds since deadlines tend to be fairly transparent. I would guess that the retention rate for mid-senior level funds associates is much higher than M&a for that reason.
Personality is very firm/group dependent, although I’ve found funds lawyers are generally very collegial. The nature of the practice is much less adversarial than M&a since you do a lot of repeat deals with the same managers/investors and your clients have a strong interest in keeping their counter parties happy since it’s a relationship business.
Do funds lawyers ever get into fundraising or is that hard to do?
Re: Fund Formation vs. M&A
Posted: Thu Aug 19, 2021 2:45 pm
by Anonymous User
Anonymous User wrote: ↑Thu Aug 19, 2021 2:20 pm
Anonymous User wrote: ↑Wed Aug 18, 2021 5:59 pm
Source: Current funds associate
Easiness to make partner is very firm and practice specific. My guess is that funds maybe is a newer/faster growing practice so may be easier to make partner but that could all change in 5-10 years
Exit options depends on what you’re looking for. M&a probably has wider exit options since you could get exposure to a lot of industries. Funds will be more limited since you’re looking mostly at exits in the asset management industry but that industry is also extremely high paying.
Lifestyle of the funds practice is significantly better than m&a. At top funds shops you will work similar hours to M&a overall but your hours will be fairly consistent on a weekly basis. M&a can have a lot of last minute or weekend fire drills. Almost never happens in funds since deadlines tend to be fairly transparent. I would guess that the retention rate for mid-senior level funds associates is much higher than M&a for that reason.
Personality is very firm/group dependent, although I’ve found funds lawyers are generally very collegial. The nature of the practice is much less adversarial than M&a since you do a lot of repeat deals with the same managers/investors and your clients have a strong interest in keeping their counter parties happy since it’s a relationship business.
Do funds lawyers ever get into fundraising or is that hard to do?
Do you mean working with a placement agent? Anecdotally, friend of mine switched from our funds practice to an investment bank's fund formation placement practice. Not heard of, but don't think it's very common.
Re: Fund Formation vs. M&A
Posted: Fri Aug 20, 2021 3:12 pm
by Anonymous User
Anonymous User wrote: ↑Thu Aug 19, 2021 2:20 pm
Anonymous User wrote: ↑Wed Aug 18, 2021 5:59 pm
Source: Current funds associate
Easiness to make partner is very firm and practice specific. My guess is that funds maybe is a newer/faster growing practice so may be easier to make partner but that could all change in 5-10 years
Exit options depends on what you’re looking for. M&a probably has wider exit options since you could get exposure to a lot of industries. Funds will be more limited since you’re looking mostly at exits in the asset management industry but that industry is also extremely high paying.
Lifestyle of the funds practice is significantly better than m&a. At top funds shops you will work similar hours to M&a overall but your hours will be fairly consistent on a weekly basis. M&a can have a lot of last minute or weekend fire drills. Almost never happens in funds since deadlines tend to be fairly transparent. I would guess that the retention rate for mid-senior level funds associates is much higher than M&a for that reason.
Personality is very firm/group dependent, although I’ve found funds lawyers are generally very collegial. The nature of the practice is much less adversarial than M&a since you do a lot of repeat deals with the same managers/investors and your clients have a strong interest in keeping their counter parties happy since it’s a relationship business.
Do funds lawyers ever get into fundraising or is that hard to do?
Yes, some go into investor relations (but it's not very common, tends to be a "type" and often those people end up wearing multiple hats at the manager). Would be less common to become a straight up placement agent/biz dev person. All else equal, M&A gives you more diverse non-legal/JD-advantage type exits.