Stay in UMM / MF PE or leave for Activist HF
I am currently at a European UMM / MF PE shop in New York (Latest fund $5-15bn, think Cinven, Astorg, Permira, PAI).
Currently in final stages with a top activist fund (think Elliott, Starboard, ValueAct) to work under one of their strong / well-performing PMs.
I think it is a no-brainer to take the offer if I get it but wanted to check with the community what you guys think. Willing to take on some more risk for the potential for outsized near-term earnings (if that is still possible from the funds I listed?)
I don't know if job security is that much worse at those funds than at a UMM / MF PE shop.
Since you are already VP level, I would think you have performed well enough in your career that you aren't getting shitcanned like someone who would out of banking for being straight up incompetent. Both are likely up or out type seats so you need to perform in both but those strats aren't pod models where you are gone in a quarter.
Moving back to PE at a similar sized fund if you don't do well, I wouldn't imagine would be off the table though you probably lose credit for the years at the activist fund. Easier to say - I liked private transactions with control more than the process elements of public campaigns than the, "looking for a new opportunity down-market".
People generally assume you are getting pushed out in both circumstances but easier to believe in someone who didn't do great in public markets than someone who is trying to "trade down" in fund size.
what do you mean by this? can you please elaborate?
"people generally assume you are getting pushed out in both circumstances but easier to believe in someone who didn't do great in public markets than someone who is trying to "trade down" in fund size."
To put it simply, almost no one willingly leaves those types of roles. Even if you don't love the process the comp is usually enough to alleviate those feelings. If they do leave its usually 1) performance, 2) political, or 3) to start their own thing. If you're not doing the 3rd, it's almost always 1 of the first 2.
It's better self-marketing to position yourself as "I disliked the process of dealing with public campaigns where there are so many more variables to deal with that you can't control for" (e.g. regulators or in theory how someone could just come along and fuck your whole thesis out of spite a la Icahn/Ackman) than to be the bigger fish looking for a smaller pond. It'll ingratiate yourself more to the folks you're talking to. At least that's how I'm interpreting it.
What would the rough comp differential be? Think lot of people believe hf pay higher when in reality it isn’t true esp if ur at a MF
Bump, curious what comp looks like given when you look up analysts at Pershing their $5mm condos pop up
PE role: $200k base + $200-300k bonus
HF role: $225k base + $600k-$800k bonus
Curious how many years are you into PE?
How were you able to gauge the quality of the PM? Looking to make a similar move
Have talked with both current and former analysts at this fund so have a fairly good sense on his track-record
Thanks. Any tips on prepping for activist interviews? Feel free to PM also, would love to chat
Bump on the above, would also love to chat - PM me
Pariatur mollitia ad et eius. Nobis consequatur voluptatem consectetur illo. Ex est et nostrum quas est suscipit.
Harum dolor odit aperiam minima. Alias amet laudantium deserunt. Aspernatur praesentium soluta atque suscipit libero. Odio totam sint omnis impedit magni rerum sed. Necessitatibus corrupti occaecati aut vitae est quam.
Molestiae nostrum praesentium voluptate voluptates vel. Fugit vel in dignissimos necessitatibus facilis velit. Ut enim accusantium minus impedit. Eum doloribus eaque sed. Et non facere amet doloribus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...