9 Comments
 

I think it's a risk tolerance thing. Generally speaking your role on the SS has a cap, whereas working for a fund the rcomp (especially being one of the first in the door) can be exponential...but the downside is also a 0 if you don't perform/if the fund shuts down. Do you have a family/kids etc to take care of? I think for you it's fairly situation/risk tolerance dependent...if you need the CF now, obviously staying on the SS would be safer, but if you've always wanted the buyside gig/you are free of the NEED for CF right now (ie mortgage, wife, kids etc), then might be worth it to take the shot...they don't come around often, especially to be one of the first in the door.

 

Are you interested in moving into PM side in the foreseeable future? Would you choose direct contributions to investment vs. publicity? If yes to any of these two questions, I would go work for the fund. Sounds like you're tired of your current job. You'll probably regret it if you don't take advantage of this opportunity.

Not everyone is meant to make a difference. But for me, the choice to lead an ordinary life is no longer an option.
 

You can always go back to the ss where you belong after you blow up your new fund too!

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Best Response

Hard to say. I am more favorable on most on ER careers - the stability and lower stress has a lot of value. Comes down to what you want to do longer-term, do you think you would be a great investor? Do you truly believe that this founder is a smart guy? Do you think you could become the primary ER analyst for your sector some day (i.e. how old is the senior analyst, how strong is the franchise, etc)?

Note that a key detail is that the start-up fund has the backing of a larger fund - that means that even if things don't work out, there is a chance that you would just get folded into the larger pool. That helps your downside. Also, you can always go back to ER, but possibly in a more senior role. I'm leaning towards the buyside role. If you are still debating, feel free to reach out to me directly.

 

Thanks for the comments/thoughts guys. I went for it and took the role. I have to say I am pretty excited to start.

@slowdive - breaking everything down that way was definitely helpful in making the decision. I will make sure to reach out later as I'm positive I'll have additional questions once I get settled in.

 

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