Angela McCoy refutes the stereotype of private equity as slash-and-burn investors. She explains that her firm focuses on growth by building out management teams, adding headcount, and investing in functions like commercial and engineering, thereby creating jobs in smaller communities.
Rather than relying on a single mentor, Angela McCoy advocates creating a dynamic "personal board of advisors." This group consists of peers and mentors from other firms who offer objective advice, act as advocates, and provide external perspectives that internal colleagues cannot.
Starting in a generalist role provides broad exposure to diverse industries, business sizes, and transaction types. This wide-ranging experience, like Angela McCoy's at a family office, builds a valuable foundational skill set before transitioning into a specialized private equity focus.
Working in leveraged finance during the 2008 financial crisis provides intense, high-volume exposure to a wide range of deals, including LBOs and distressed situations. This experience across the economic cycle builds a robust knowledge base and versatile skill set essential for a private equity career.
Angela McCoy states her conviction that a sector-focused strategy is a winning approach in the lower middle market. This specialization, particularly when combined with a heavy emphasis on operational value creation, aligns with current trends and attracts LP investment, validating her career move from a generalist firm.
Joining a small PE team with no internal peers can be isolating and hinder learning. Proactively building a strong network of peers at other firms is crucial for guidance, sharing knowledge, and getting up to speed, especially when formal internal mentorship is limited.
A key mental shift for experienced professionals is moving from self-doubt to appreciating the profound value of their accumulated knowledge. Recognizing that years of diverse experiences have built a unique perspective provides the confidence to speak with authority and contribute meaningfully.
Contrary to what junior professionals might think, asking seemingly basic questions is often a sign of experience. Seasoned experts know which foundational assumptions to test and have the confidence to clarify core concepts, realizing it's more effective than feigning knowledge and looking it up later.