Does Private Equity prepare you for starting/running your own business?
Hello, I will be joining a BB bank (GS/MS/JP) in London as an IBD analyst. I always had in mind moving to a PE and then proving myself there and eventually starting my own PE fund either in London or NYC. However, I have now understood that this is indeed a very difficult path. My father runs and owns a pretty decent businesses in South America. He recently lost interest in one of his businesses ($1.5mln EBITDA and about $14mln revenue which makes up approximately a third of his wealth I would say) as he want to concentrate on another ventuere which he sees as more promising. I have 4 siblings and three half siblings from a first marriage and so I will be inheriting relarively little by the time he passes away (hopefully as late as possible). However, given the recent developments and the fact that I am the most accomplished (hate to say this) son in the family, he offered to give me 51% of the shares in the business I previously mentioned provided I go back to South America and dedicate my whole energy in it. He said I can either take the offer now, or wait 5-6 years and take over the business after having had some experience in London. I have three choices in front of me:
1) Join the business immediately giving up my banking role
2) Joining the business after 5-6 years in finance after which I will hopefully have had 2 years of banking experience and 3-4 years of PE experience
3) Never join the business and continue to build a career in finance with the objective of making the big bucks there (harder and harder these days?)
What do you guys suggest I do? Will the PE experience make me a better entrepreneur and CEO or will it be useless in that regard? I am willing to work hard in any field and I would probably enjoy all of the options, tbh my main motivation is maximizing long-term wealth.
There is certainly some transferrable experience but since PE deals with established firms that have got over the initial 'start-up' hump, perhaps VC would prepare you better. VC deals with inception, PE with longer term growth.
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