Those who joined a PE port co and received some stock how’d it go?
Have an offer for a PE backed company doing a mix of corp dev / strategy. Some stock units are part of the comp package. Curious to hear others experience with this in the past. Obviously I don’t put a ton of weight on them but it is a cool comp component nonetheless.
Joined a PortCo expecting an exit in 3 years, left 2 years ago (after 3 on the job), still no exit.
Joined a portco 2 years ago and was awarded units 6 months in. We had initial meetings with advisors 1 year ago but those faded as management's focus shifted to a new growth opportunity. Hope to post a success story in 1 or 2 years...
The devil is in the details on these. The standard non exec package is somewhat mediocre, with some tough criteria to meet to see any return: performance units vest over 5-7 years and require you to be there when the exit occurs (and an exit may occur early, meaning you don't vest everything), and it has to beat the sponsor's return hurdle. In a VC/GE backed business, ISO's may require a cash payment (cashless exercise may be an option) but suffer from unknown timing of a liquidity event and sit at the back of the cap stack.
That said, if a PE firm has a good track record and the business does "well", you could expect on average to maybe make 2-3x the original value of the grant. Guessing your grant probably isn't that big, so it's typically a nice bonus but not lifechanging.
I had a small amount of ISO's from a former employer that went public and ~4x'd my money. Pleasant surprise, but nothing life changing.
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