I think the modern private equity industry is about 25 years old, with the rise of LBO funds in the mid-1980s leading to the foundation of many of today's leading funds. I wanted to join a firm that had a strategy to lead the industry. I also wanted to find a firm that wanted me to make a contribution for many years, so that, should I perform very well, I would be able to enter the partnership. Finally, people matter in this business. The private equity firms are often only twenty to forty professionals, and rarely more than a hundred.
Cultures are quirky, even among firms with similar fund size and strategy.
I wanted to find a culture that felt right, and people I respected and liked. However, the GSB network, in addition to other friends of mine, were invaluable in facilitating introductions and giving me their candid opinions of various firms. Fall of the second year, for this reason, was busier and more stressful that the first year. I spoke with firms in California, Boston, New York, and Chicago, and racked up 20,000 air miles in the month of November. Several firms ran formal processes, by invitation only.