Does anyone have insight on director-level opportunities in corporate development? I have 5.5 years of IB + PE experience (did typical IB path, then PE associate stint, back to IB as an associate). I'm a year away from making VP, but also am coming across some corporate development opportunities at small portcos - primarily executing and some sourcing for M&A. I understand the differences between corporate development / IB / PE at more of the junior levels, but is "Director of Corporate Development" a decent exit post-IB? Assuming the company sells in 1-3 years or so, would it place me well to be a VP of Corp Dev at a company, or is the "Director" position sort of a ceiling? Also, the title is there, but the trade-off is lower comp compared to banking. I'm thinking a fair-level would be $250k all-in cash + some equity upside, but curious to hear others' thoughts.
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Based on the most helpful WSO content, the role of a Director in Corporate Development can be a rewarding career path, especially if you're interested in M&A and industry-specific work. It's not necessarily a ceiling, as there are positions above it such as VP and C-Level Executives.
In terms of compensation, it can vary widely depending on the company and its location. For instance, a Director role in Corporate Development can range from $300K to $500K per year. However, it's important to note that these figures can fluctuate based on the company's performance and other factors.
If the company you're considering sells in 1-3 years, it could potentially place you well to be a VP of Corp Dev at another company. However, this would largely depend on your performance and the relationships you build during your time as Director.
In terms of the trade-off for lower compensation compared to banking, it's a personal decision that would depend on your career goals and lifestyle preferences. Some people prefer the work-life balance and industry focus that a role in Corporate Development can offer, even if it means earning less than in banking.
Remember, it's not just about the title or the compensation, but also about the work you'll be doing and the skills you'll be developing. So, consider all these factors before making a decision.
Sources: What level in Corp Dev after 2 years banking + 2 years PE?, Leave PE for Corp Dev VP role?, The Other Road: Corporate Development Associate Fielding Questions, Corporate Strategy vs Corporate Development
The big question is really why you went back to banking from PE.
The comp is probably fine, if not slightly above avg (a lot of crappy jobs out there paying sub 200). You might get a director or VP title but it doesn't matter much - with your exp/background my guess is there will be someone more senior, or you'll have a guy at the sponsor at a similar/slightly senior level who calls the shots.
Check out the Charles Aris CorpDev comp report for details.
My personal experience for corp dev role at a pe backed business (150-200m ebitda):
- was asked to consider corpdev senior director role
- would have headed the corp dev operational structure (2 bd directors, 1 dd coordination lead…)
The challenge, the VP above sitting on exco, new joiner too, and 20 more years of experience than me. Obvious ceiling short to long term => i’d be unlikely to step in his shoes any time soon given the gap.
(I’m more experienced btw - 11 years of IB before I jumped ship, left as a director).
The ladder is very different in corporates, even pe-backed. Title and responsibility / influence are 2 very different things, and with your experience level that would qualify as skilled, but not close to leading a critical functional area.
It doesn’t mean that the jump is not worth it, but be careful of the pitch & promises.
they always say they want a "deal quarterback" but what they forget to say is there's a hand-the-ball-off quarterback, a game manager, and the dude they let pick his own plays. :)
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