Portfolio managers are vital to the heart of WebStreet’s ecosystem, and we are meticulous in our selection process to ensure that only the most qualified professionals like yourself join our platform. As a portfolio manager, you have the unique opportunity to operate with up to 4.7X leverage, potentially skyrocketing the growth of your portfolio.
To qualify, you must have a proven track record in the specific monetization type for which you are raising funds and be prepared to invest your own capital alongside your investors.
The Vetting Process Step-by-Step
Step 1 – Initial Review of Top Candidates
This form is a brief questionnaire that asks about your experience with online businesses and any portfolios you currently manage. It should only take about 10 minutes to complete, and you can submit it at any time of the year.
Our vetting team will evaluate the number and nature of the businesses in your portfolio.
After you submit the form, our analysts will review the information to ensure you have the necessary experience for the program. This step is crucial, as we aim to involve only the best Portfolio Managers at WebStreet. We are thorough in our vetting process to ensure the qualifications of our Portfolio Managers.
Step 2 – Assessing Shortlisted Candidates
If you meet our criteria, you will receive a second, more detailed questionnaire tailored to the type of monetization you specialize in.
The questionnaire will request detailed information on the following:
- Your current and past portfolio: the size of businesses, how they were acquired, and how they are managed.
- Your team: the growth strategies you use and how your team operates.
- Experience specific to monetization: inventory management for FBA, Google algorithm updates for content sites, and other relevant experience. You may also be asked to submit a video introducing yourself. This allows us to learn more about you personally and gives you a chance to elaborate on your experience and objectives.
We will also verify your willingness to co-invest in your target fundraising. Co-investments amount to 5% of the deal value, and decreases in subsequent rounds. Additionally, we will conduct background, criminal, and credit checks on all potential Portfolio Managers.
“So I’ve been working with WebStreet for almost four years now, and we’ve done four rounds with them. I love working with WebStreet because they allow me to do what I know best, which is finding the right deals, doing those deals, and then growing these deals, while WebStreet takes care of communicating with the investors and getting my work across with the right messaging. I can focus on my work, while investors also are at ease because they’re getting constant updates from WebStreet.”
Mohit Tater, Founder of Blackbook Investments, Portfolio Manager at WebSteet
Step 3 – First Interviews
During the first interview, you will meet with the WebStreet team to discuss the program in detail and elaborate on your reasons for wanting to participate.
In this step, we aim to learn more about you both as a Portfolio Manager and as an individual. We will delve deeper into the information you provided in earlier stages of the application process, asking you a set of predefined questions about your track record, past successes and failures, and your long-term objectives.
The goal is to gain insight into your acquisition criteria, including your preferred deal size, monetization strategies, and niche. We will also inquire about your current team and operational processes.
This interview stage is designed for you to gain a better understanding of the program and to determine whether it aligns with your goals.
Step 4 – Listing Evaluation
In this stage, you will be tasked with selecting listings from a brokerage of your choice that you believe could be potential acquisitions. You will need to analyze these listings as if you were preparing to acquire these businesses. This analysis should include a brief explanation of why you chose these listings and how they align with your criteria.
Following that, you will be required to conduct a more in-depth analysis of one of the potential deals. This will involve performing due diligence, creating financial projections, drafting a business plan, and devising an acquisition and negotiation strategy.
This step allows us to observe your approach to evaluating a deal.
You will need to articulate the reasoning behind your choice of business and justify why it is a suitable fit for you, as well as how you plan to execute the deal. Your analysis should include both quantitative and qualitative assessments of the target acquisition, projected investor returns, and an overview of the risks and opportunities associated with the acquisition.
The ability to identify and acquire strong businesses at a favorable price while considering investor returns is a critical skill for WebStreet Portfolio Managers.
While your track record provides insight into your past performance, the listing assessment stage offers a framework for evaluating and comparing your future performance.
Successful completion of steps one through four will lead to an invitation to a final interview.
“Our annual cash and cash returns have been just north of 12%. Our target returns are 20% annualized… These businesses typically trade for around 3x annual, and any growth that you achieve really comes out at the exit.”
Blago Nestorov, Investments Manager at WebStreet
Step 5 – Final Interview and Selection of Portfolio Managers
During this interview, we will provide feedback on your application performance and discuss your due diligence exercise. We will assess your capacity to fulfill the responsibilities of a Portfolio Manager, outline the operational timeline, and clarify the next steps, including the fundraising and acquisition period. Additionally, we will define the acquisition criteria that you will present to investors.
Following the final interviews, we will select the most suitable Portfolio Managers and extend offers to them.
Successful applicants will be required to provide a few additional verification items before proceeding, such as proof of financials from your portfolio and your track record. You will also be asked to undergo a background and credit check.
Portfolio Manager Selection is Crucial to Your Success at WebStreet
While you may be qualified to raise funds with us, you may not be selected for a given round based on the other Portfolio Managers we have chosen. If you are not selected, we will offer candid feedback on your strengths and weaknesses and consider you for a future round.
By Step 2, we have reached the final application stage with a highly competitive selection of candidates.
After evaluating your individual strengths and weaknesses and your fit into a diversified portfolio offered to investors, we will make the final selection of a few candidates with expertise across different monetization types, acquisition criteria, and growth strategies.
“If you’re an experienced online entrepreneur and you’ve done this multiple times before where you’ve bought businesses, grown them, and sold them, and you have a good track record, under the WebStreet umbrella, we vet you, we look at your track record, and we do a whole bunch of checks, such as putting you through a simulation, and due diligence. And then we would put you in our fund, usually along with another three to four portfolio managers.”
Mike Vranjkovic, Managing Partner / Co-Founder at WebStreet
Overall, we are seeking a recent and relevant track record of executing the exact strategy you intend to pursue. For example, if you are interested in managing FBA deals, you should have a track record of successfully executing those types of deals.
Portfolio Managers do not receive a salary; instead, all compensation is derived from their share of the profits. Additionally, all operating expenses, including team and contractor services, are charged at cost, and WebStreet will conduct audits to ensure accuracy.
Many Portfolio Managers have completed transactions with WebStreet. We can verify these candidates’ track records more easily because WebStreet often prepares the P&L, vets the portfolio manager’s businesses, and assists in executing the deal.
If you have not previously transacted with WebStreet, we will verify the numbers you provided and vet your track record of buying and selling businesses based on your previous industry experience.
Are you ready to take your investment strategy to the next level? Whether you’re a seasoned Portfolio Manager or an investor eager to explore the alternative investment world of online business investing, WebStreet offers you the perfect opportunity.
Apply now by clicking here if you have what it takes!
