Hoping for some thoughts on going from a smaller to a much larger PE fund
Dear all,
I'm currently in an Asia PE fund which is still in its first fund (<US$100m) although we have just completed the deployment of the fund and thus in the process of raising the second fund, ideally larger.
As a result of the small fund size, my remuneration is quite a way below market but as an early employee, I have been offered carried interested which could potentially give me about 0.8% of the total carry pool (would be forfeited if I leave the fund). Given the small team, I have been given opportunities to work on all aspects of our deals and have been promoted relatively quickly to VP (although I think that it is a bit of inflation that, given that I'm still doing analyst/associate work). WLB is great here as well.
Recently, an opportunity came up that could potentially yield me a junior position (analyst/associate) in a much much much larger fund so the salary is likely to be much higher as well. In this day and age of high inflation and rising cost of living, this is a huge plus.
Just wanted thoughts from everyone here about how to think about this new opportunity. Would I be too comfortable if I stayed with my current fund instead of looking out for other opportunities which could allow me to work on larger deals and have a higher salary?
P.S. I have been with this fund for more than 5 years and the carry is European-style.
Thanks in advance.
Geez, 5+ years of experience and you are getting offered an analyst/associate job, and doing analyst/associate work? Was some of that time as an intern?
There's no right answer here. Generally it's hard to move upmarket, so if you want to do so this is probably your chance. At a fund that size you are unlikely to ever really get paid market.
Also, on carry - it's market for VPs to get carry, so if that's what is keeping you, you won't be too far away from getting carry at the new fund and I'd imagine in dollars it'll be much more than you are getting now. 0.8% feels low given that is 0.8% of a very small pie and you are also getting paid below market. I would ask the new fund about carry and what the typical VP allocation is - acknowledging you are a bit away from VP, but are giving up carry at your current fund and want to make sure you will be on a path to get carry in a few years.
If you really like your fund, the people, and the work that is one thing, but I would not stay simply for that tiny bit of carry in a tiny fund
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