VP Moving to Portfolio Company Sales Role from PE/Credit
Hey everyone - many years on this forum so appreciate the feedback and also proud to have contributed to helping others in this crazy industry we all live in.
Wanted to get the forums’ general thoughts on my situation as I’m stuck between a rock and a hard place. Primary question is thoughts on leaving my existing credit role to jump into a sales role at a portfolio company, and how difficult it would be to get back into private credit.
Quick background, and I may be exposing my identity a bit but whatever. I’m a VP at a mega fund on the credit side and spent some time in LMM PE and mezz + various bulge bracket investment banking roles at the junior level. Non-target school, always just hustled and worked smart and hard. “Performance” reviews have varied depending on internal politics. Current compensation is now $315k all in split salary and bonus.
Headline issue is that after a year at the VP level in credit, I am frankly bored and somewhat exhausted from working in an intense ultra high performance driven environment. This might sound lazy but it’s not meant to be. My current segment of the firm is very political, there are meaningful internal issues and internal battles to be fought, and everyone takes themselves too seriously. I’ve pretty much maxed out on my learning at this point, with the exception of learning some things about new businesses/industries segments and seeing new management teams and different styles and approaches to growing their biz. There’s always more learning and some new things but generally speaking the role is more repetitive and much more legal doc focused which is the stuff I least enjoy (many amendments, negotiating commitment letters and credit agreements for new deals and participation’s, LPA docs, etc.).
I’m happy to get into private credit in more detail, but do think it’s a pretty interesting emergence within the industry (massive AUM growth, better hours, similar comp to PE with exception of most senior roles). I think the business is getting more commoditized and getting new deals is more and more just recurrent relationships with sponsors. But at the end of the day my current shop/role is actually pretty good in regard to deal flow / exposure and managing processes and the hours can be really good.
I do however have the opportunity to jump to a portfolio company. The role is completely different though - it’s a Director of Sales role with a large market / dedicated geography. Company is rapidly growing, recurring revenue model, sponsor backed, and offers a pretty solid service offering to private equity and law firms. Basically my job will be to meet with PE and big law firms a few times a week and try to sell them on services for their deals that most of them are already using. Means going to coffee, getting drinks, attending conferences, etc. Not a ton of travel as all of my focus will be on NY. Comp is interesting, $130k base, but 6% of all revenue generated and a revenue split with other sales folks in Chicago and Boston if clients are shared (to reduce internal selling competition / more collaborative). To put in perspective, 4 total salespeople today and top two made $1mm and $700k all in comp incl. commissions. However, I’ve been told there will be a decent ramp so it’ll take me some time to get to those levels, if ever. I’ll also be offered some decent equity units in the business. There’s more background as to how I got into this opportunity but will not bore folks. I have always personally enjoyed the aspect of the existing role of being out in the market and networking, talking new deals or sports, etc.
I’m wondering how difficult people think it will be to go back into PE/PD or even banking (which is just a sales role)?
I’ve spoken historically with some of the big headhunters about leaving for my own business, and what it looks like if that fails, and the general consensus was that there’s enough supply of folks on the typical track who would be suitable for the VP level roles and I just wouldn’t be hired even if the business made a lot of sense and I gained a ton of good experience which would IMO just enhance my investment /operational skill.
To me, seems like it could be a cool gig, having drinks and lunch with people, expense account for sporting events or dinners, big potential upside comp with a not horrible base, and flexible hours and working location. But I could be walking away from a potential good career trajectory in private credit and a stable $300+ in comp and making an irreversible mistake. Going from buyside to pure sales just seems odd and not sure how that is ultimately perceived.
Thank you for any responses and those that read through. Will pay it forward.
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