Big career move: Daily Stat Arb or Factor Based Monthly Quant?

(This has also been published in the HF forum.)

Fact:

Current:
1. Managing a new mutual fund for a small money manager (head count 20) with 17m for 5 qtrs. Performance is M* top 3%.
2. Managing a similar institutional account with 73m for 3 yrs. Beat benchmark by 1.6%/yr on average.
3. 3-4% shareholder of the company.
4. Fixed compensation 178k/yr with 122k/yr bonus/profit share.

Offer:
1. A small stat arb shop with 6 guys/gals trading in JP, Australia and China.
2. The fund has half year record and 70m. So far SR is 1.7.
3. My role is quant PM for the new China fund.
4. Fixed compensation 130k/yr, bonus not clear. No equity compensation.

Help needed:

1. Would you accept the offer if you were in my shoes?

2. I like the stat arb experience and growth potential, but I realize that this offer is probably not acceptable as is. So any suggestions on how to negotiate is very helpful. In particular, I do not know whether it makes sense to ask for an equity stake. Is it common for HF to pay equity and typically in what percentage?

3. Other important consideration? I did my due diligence and their live performance is worse but consistent with their backtest results.

4. The owner was from PDT and SAC. So it surprises me that he can only raise 70m after two years. Has stat arb become a sunset trade?

Any comments are very welcome.