What are the best sectors or verticals to cover to maximise chances for buyout exits? I heard TMT is the most sought after but is it across all verticals? I was also told that within industrials business services offers great exits, which makes sense given that it is mostly a sponsor-driven market.
What about the other sectors?
| +97 | Sr Asso / VP Unemployment Check-in | 58 | 20h | |
| +35 | What did you do after signing? | 12 | 1d | |
| +25 | Resume Gap after 2.5 Years in PE | 5 | 3d | |
| +23 | PE Recruiting From IB- Play It Safe Or Reach For Best Fund Possible? | 11 | 23h | |
| +23 | PE / IB in NYC from Cambridge compared to US colleges | 26 | 6h | |
| +23 | Where is there untapped value in secondaries? | 13 | 2s | |
| +21 | Public company LBO | 8 | 2h | |
| +20 | Vista Lateral Associate | 12 | 4d | |
| +18 | VP HF Lateral to PE | 1 | 3d | |
| +16 | What is GS Private Equity like? | 5 | 9m |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Following
The answer to this question will be subject to personal interest/fit for the person. There can’t be a long term “best sector” from a returns perspective as competitors will enter the sector and compete out excess returns.
Agree but you can still have a POV on generating alpha within verticals over a set time horizon (next 5-10 years). Eg TB and Vista investing heavily in Software throughout the 2010s and consistently seeing above market returns. I think OP is trying to understand verticals today that have a lot of cap markets inefficiency whether its value or speculative.
Fair - That’s a harder question and one which I wish had a better view on. However, given OPs title and comments about hearing from others, I think the best advice for OP is to focus on sectors that interest them rather than searching for a golden goose from a returns perspective.
There are so many buyout shops that focus on sectors across the board that you can find good depth across most of the coverage sectors at a bank.
Obviosuly the big verticals will have a ton of exit ops - think industrials, business services, TMT, healthcare, FIG. I think the industrials/services/TMT offers you the most flexibility since the business models and drivers are relatively straightforward, whereas healthcare and FIG will position you really well for shops that focus on those areas (HC understanding the nuances of your specific countries system, similar for FIG local banking and insurance regulations).
I don't want the above to dissuade you from nichier groups, though. I've seen a number of folks pivot from real estate/gaming/lodging, metals/minerals, infra in banking to a completely different PE seat.
Error eos earum sit et. Esse beatae eligendi molestiae tempore maiores necessitatibus nemo. Praesentium rerum officia eum nostrum rem ad minima. Aut harum tenetur deleniti et aut eligendi. Minima est tempore modi et excepturi qui.
Laboriosam aspernatur possimus earum quisquam ratione ex. Quia earum saepe nobis explicabo voluptas. Voluptas veniam et nihil quas.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...