Private funds, PE, CapM, M&A? Forum
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Anonymous User
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Private funds, PE, CapM, M&A?
Hi, I understand this question has been asked many times, but can anyone provide any thoughts on these practices for an incoming associate or know where I can get more information? Would like to know about what work is like for a junior, work life balance, and what kind of exit options are available.
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Anonymous User
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Re: Private funds, PE, CapM, M&A?
As you indicated, there are lots of other threads on different transactional practices. Definitely try harder to search on your own. Hopefully the below quick summary helps a bit, good luck.
PE = Private Equity. Private equity firms create funds, and investors invest in these funds. There are a bunch of documents governing the operation of a fund. In Private Funds practice you generally form the fund, sign up all of the investors, and then maintain / advise on fund-related matters during the life of the fund. Stuff like "Investor A wants to invest $X more, but Investor B wants all of his money back."
M&A = Mergers and Acquisitions. Private equity firms use their funds to invest in, purchase, and sell companies. M&A practice generally facilitates the buying and selling of companies. Stuff like "Private Equity Firm A wants to buy Company X from Private Equity Firm B." Some practices with private equity firms as clients do both fund formation / maintenance and their M&A work. There are also firms that primarily do M&A for public companies, which is different from PE M&A.
CapM = Capital Markets. This relates to public companies. Public companies raise money from the public via the stock market. Sometimes a small private company goes public ("IPO"), but most frequently, an already-public company is just raising cash by issuing stock or debt. CapM practice interfaces with the SEC, so following the rules is very important. Stuff like "Company X is issuing A shares at $Y per share."
There is a lot of overlap, but those are general buckets. There are also Credit and Banking practices that you could explore on the transactional side. Maybe Real Estate and Tech Transactions, too.
All of these groups can be demanding, even for biglaw standards. So there is not much to say on work-life balance as junior associate other than good luck. You'll be reviewing and creating documents and sending emails in all of these. Private Funds might be the smoothest sailing, but maybe also the least fun. M&A probably has the broadest exit options, though it all depends on which firm, private vs. public clients, etc.
PE = Private Equity. Private equity firms create funds, and investors invest in these funds. There are a bunch of documents governing the operation of a fund. In Private Funds practice you generally form the fund, sign up all of the investors, and then maintain / advise on fund-related matters during the life of the fund. Stuff like "Investor A wants to invest $X more, but Investor B wants all of his money back."
M&A = Mergers and Acquisitions. Private equity firms use their funds to invest in, purchase, and sell companies. M&A practice generally facilitates the buying and selling of companies. Stuff like "Private Equity Firm A wants to buy Company X from Private Equity Firm B." Some practices with private equity firms as clients do both fund formation / maintenance and their M&A work. There are also firms that primarily do M&A for public companies, which is different from PE M&A.
CapM = Capital Markets. This relates to public companies. Public companies raise money from the public via the stock market. Sometimes a small private company goes public ("IPO"), but most frequently, an already-public company is just raising cash by issuing stock or debt. CapM practice interfaces with the SEC, so following the rules is very important. Stuff like "Company X is issuing A shares at $Y per share."
There is a lot of overlap, but those are general buckets. There are also Credit and Banking practices that you could explore on the transactional side. Maybe Real Estate and Tech Transactions, too.
All of these groups can be demanding, even for biglaw standards. So there is not much to say on work-life balance as junior associate other than good luck. You'll be reviewing and creating documents and sending emails in all of these. Private Funds might be the smoothest sailing, but maybe also the least fun. M&A probably has the broadest exit options, though it all depends on which firm, private vs. public clients, etc.
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Sackboy
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Re: Private funds, PE, CapM, M&A?
In most places groups labeled PE or M&A are the same as the M&A described above. The PE described above is generally in a group called Funds. That's my experience at least.
