I am a fifth year law student. I was recently offered a full time position at a tier 1 law firm in the investment funds practice. I have heard a lot of negative chatter about the practice area from my law school seniors, and peers. I find it interesting, but do want flexibility in my career - both location and ability to switch to in house roles.
(1) What is the growth potential of this practice in India in the next 10 years? (2) Do you expect the practice to expand out of Mumbai (to Delhi or Bangalore)? (3) How easy is it to switch from investment funds to M&A/GC/PE&VC roles? (4) Do PE firms look to hire in-house lawyers with only investment funds experience?
There is immense growth in funds but not in the sense you want. Very unlikely that it'll grow out of Mumbai.
If you're choosing funds, then absolutely forget flexibility, there is very less flexibility in choosing firms only; forget in house and location.
Switching is hard because the area is completely completely different. Switching from PE to funds would be a better idea than vice versa.
Getting hired by PE firms is a complete hit or miss you can't rely on it.
I would strongly suggest you that if you're not from Mumbai or want to eventually shift out of Mumbai, start off by PEVC instead of investment funds. Starting by funds you'll be limited to 3-4 good firms at Max, there is absolutely no flexibility remember this.
There is immense growth in funds but not in the sense you want. Very unlikely that it'll grow out of Mumbai.
If you're choosing funds, then absolutely forget flexibility, there is very less flexibility in choosing firms only; forget in house and location.
Switching is hard because the area is completely completely different. Switching from PE to funds would be a better idea than vice versa.
Getting hired by PE firms is a complete hit or miss you can't rely on it.
I would strongly suggest you that if you're not from Mumbai or want to eventually shift out of Mumbai, start off by PEVC instead of investment funds. Starting by funds you'll be limited to 3-4 good firms at Max, there is absolutely no flexibility remember this.
Its just like Capital Markets - work is clerical, firms putting in quality work are few and chances of going in-house are sleek. Should be avoided unless you are 200% sure of growing and making the best out of it at a firm. The darker side of both funds and capmarks is that it becomes kind of difficult to switch to M&A/GC roles since you neither develop the skills nor the bend of mind to understand general corporate transactional work/research propositions.
(1) What is the growth potential of this practice in India in the next 10 years?
Great potential - see the proliferation of funds over the last 10+ years.
(2) Do you expect the practice to expand out of Mumbai (to Delhi or Bangalore)?
It already has but Mumbai is likely to still be the biggest center.
(3) How easy is it to switch from investment funds to M&A/GC/PE&VC roles?
The skill sets are entirely different - it is a different practice area after all. There will be a learning curve, much like if you wanted to do debt work tomorrow coming from a fund formation background. So, I would reckon you will be able to switch in the first 2/3 years but it will have difficult after that.
(4) Do PE firms look to hire in-house lawyers with only investment funds experience?
Mostly, no. Once a fund is formed, then between entry and exits, a fund may have 10-20 deals (if not more). So, they are likely to value the lawyers who are involved in those 20 deals over the lawyers who are involved in the fund formation. That being said, larger funds may end up hiring a few people with fund formation background.
One question you haven't asked, which I think is probably the most important, as you grow older: what are the exit opportunities outside of law firms?
Here, M&A / PA & VC (and I consider this to include general corporate) or even debt work will give you far more marketable skills if you wish to move in-house. It will be silly for you to bank on exiting to a fund after you leave law firms since there are very few of those roles available in the market and typically people stick around in those roles once they get them. So, your likely exit is to be an in-house in a company. Here, fund formation work gives you very little advantage since it is a niche practice area and practice areas which have a larger universe of companies or which have general skills make more sense. Someone coming from a M&A / PE background will know how ESOPs work, how employment agreements work, would likely have done more drafting of general contracts, and thus will have skills which a founder will be more interested in, rather than fund formation.
(1) What is the growth potential of this practice in India in the next 10 years? (2) Do you expect the practice to expand out of Mumbai (to Delhi or Bangalore)? (3) How easy is it to switch from investment funds to M&A/GC/PE&VC roles? (4) Do PE firms look to hire in-house lawyers with only investment funds experience?
Would appreciate honest answers! :)
If you're choosing funds, then absolutely forget flexibility, there is very less flexibility in choosing firms only; forget in house and location.
Switching is hard because the area is completely completely different. Switching from PE to funds would be a better idea than vice versa.
Getting hired by PE firms is a complete hit or miss you can't rely on it.
I would strongly suggest you that if you're not from Mumbai or want to eventually shift out of Mumbai, start off by PEVC instead of investment funds. Starting by funds you'll be limited to 3-4 good firms at Max, there is absolutely no flexibility remember this.
If you're choosing funds, then absolutely forget flexibility, there is very less flexibility in choosing firms only; forget in house and location.
Switching is hard because the area is completely completely different. Switching from PE to funds would be a better idea than vice versa.
Getting hired by PE firms is a complete hit or miss you can't rely on it.
I would strongly suggest you that if you're not from Mumbai or want to eventually shift out of Mumbai, start off by PEVC instead of investment funds. Starting by funds you'll be limited to 3-4 good firms at Max, there is absolutely no flexibility remember this.
Great potential - see the proliferation of funds over the last 10+ years.
(2) Do you expect the practice to expand out of Mumbai (to Delhi or Bangalore)?
It already has but Mumbai is likely to still be the biggest center.
(3) How easy is it to switch from investment funds to M&A/GC/PE&VC roles?
The skill sets are entirely different - it is a different practice area after all. There will be a learning curve, much like if you wanted to do debt work tomorrow coming from a fund formation background. So, I would reckon you will be able to switch in the first 2/3 years but it will have difficult after that.
(4) Do PE firms look to hire in-house lawyers with only investment funds experience?
Mostly, no. Once a fund is formed, then between entry and exits, a fund may have 10-20 deals (if not more). So, they are likely to value the lawyers who are involved in those 20 deals over the lawyers who are involved in the fund formation. That being said, larger funds may end up hiring a few people with fund formation background.
One question you haven't asked, which I think is probably the most important, as you grow older: what are the exit opportunities outside of law firms?
Here, M&A / PA & VC (and I consider this to include general corporate) or even debt work will give you far more marketable skills if you wish to move in-house. It will be silly for you to bank on exiting to a fund after you leave law firms since there are very few of those roles available in the market and typically people stick around in those roles once they get them. So, your likely exit is to be an in-house in a company. Here, fund formation work gives you very little advantage since it is a niche practice area and practice areas which have a larger universe of companies or which have general skills make more sense. Someone coming from a M&A / PE background will know how ESOPs work, how employment agreements work, would likely have done more drafting of general contracts, and thus will have skills which a founder will be more interested in, rather than fund formation.