Taking step back to get back to banking?

3 YOE banking, 4 yoe PE. Didn't get VP promote in PE and considering going back to banking. Interviewed with a top group for a VP spot (think they're ideally targetting experienced VP/junior principal level hire).

Was asked if I'd be interested in a senior associate role to be promoted in a year. On one level feels like a bit of an insult after having done 4 years at the associate level (albeit in PE) already. On another level i've been looking for a while and the job market's absolute sht at the moment.

What should I do? Take the ego hit and take the job? Or keep holding out?

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