Offer Advice
Hey Monkeys,
Currently have an offer dilemma and would apreciate some advice mostly from experienced folks.Will keep it broad, but feel free to ask for further details.
I am working at an esg oriented investment firm in EMEA which has experienced massive growth but partners are certainly cheap and salaries are not by any means top of the street. However, I am given huge exposure and responsibility and I really enjoy my team mates, they are hard working but also chill and fun to hang around.
I have been offered the opportunity to join a start up hedge fund and the founder is willing to give me up to 10% of equity without having to buy in. The strategy is mostly focused on credit but their AUM is super low (50mn) since they are just starting. The people from there are super senior guys with top notch experience. However, even with an amazing professional career, you can never be sure that they will be able to raise enough money for the fund to survive.
With this info, should I stick to my role which has solid growth prospects but no option for equity or should I go all in with the hf?
Would really appreciate some solid advice on here since it can be a life changing career choice. Thankss guyss!
The right question is what the exit opps look like (I.e., risk management of the trade). I’d think earlier in your career, if things didn't work out, you could do a pretty good job of explaining the decision and getting another seat. what do you think?
Yeah thats true I mean downside is pretty limited. Also the founder hs insisted that if things dont work out he would help me land another job.
Don't mean to be rude, but if the dudes launching the new fund had truly impressive pedigrees, they'd be launching with much more than $50m.
Some (many) successful funds launched with small amounts back in the day, but the risk you're taking here is significant. Can't stress enough how hard it is to fundraise until you reach critical mass ($500m+?).
Truth.
The hedge fund has top notch senior guys…but they can only raise 50mm and are giving an esg junior 10% equity with zero buy in requirements???
fund launched 3 months ago. Yes, they are really solid guys, one was head of s&t at BB, and the other was one of the top quant guys at UBS/DB/CS. But yeah one thing is to be amazing technically and the other is the ability to fundraise.
Would make the jump if the senior guys are actually good and have roadmap to fundraise more.
Have you tried switching to another asset class in your firm internally? Only a few places I know that have ESG funds. Based on your comp and firm description, sounds like a Partners Group or similar. Go from ESG to Infra or something for a year and lateral to another shop. 50M aum with more than two people is going to be a tough start and survival, like the comments above say.
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