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I'd argue that it's only for the long term. Carry is only worth anything if you stay at the same fund for a long time (I'd say 5 years at a minimum but really more like 10+). It becomes harder and harder to leave as you get more senior exactly because of the carry element.

So in terms of exit, I guess you could go back to banking, move to another fund, or go maybe work at a corporate, but I seldom see people move out of PE if they've already been there longer term (except retirement of course).

 

I mean it depends on the individual, but it's a much less volatile industry than banking, for example. PEs tend to make hiring and firing decisions for the long term, and promotions, while they do follow a similar pattern to banking at the junior level, you can definitely spend time at one level without it being the same red flag it is at a bank.

This is especially true at smaller funds.

 

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