why do people want to exit into PE?
I get that PE offers (supposedly) a better work life balance and higher pay. People also say it is more stimulating since you are putting money to work.
However, I feel like I want to gain more specificity than this. Here are some questions:
- is there better work life balance if you to MF?
- how much more money do you make as an associate in PE vs IB?
- how is the comp different for a MD at a top BB / EB group (eg GS TMT, MS M&A) vs being a MD at a PE shop?
- is it easier to get fired in PE or in IB?
- (bonus) would you rather be a MD at a top BB / EB shop or MD at a PE shop?
I don’t have exact numbers or data for first four questions but for the last one I feel like on + of being MD at IB is that you work with top, public companies whereas in PE i feel like you keep working with these random companies. Ofc these random companies are awesome but Id imagine if hits different when Unilever or Facebook is said to be your client. Then again, wtf do I know i’m just an undergrad — I’d really love to hear other people’s thoughts on this because I’m sure most of you know better than I would.
Thank you!
Bump - underrated topic
This topic has been touched upon many times before.
1. No
2. Depends - given the recent raises will have to see what the comparison is but typically base is lower in PE but bonuses are higher
3. Depends again - some top rainmakers can pull in a very good comp package but you typically see PE partners make more with annualized carry
4. Probably about the same
Just go with whichever option you find more interesting and don't be swayed by what some random kids say online.
I think it’s beyond pay. People find buying/building businesses and theses on industry to be more interesting than pitching to win a company’s business.
I think it is an important question and there might be more shades of grey than conventional wisdom would suggest. HOWEVER, I have no doubt the ceiling at PE is so ridiculously higher. I'm at LMM PE that no one has heard of, and our partners' carry checks are probably multiples of what top banking MDs make.
Not just WLB and comp.
- More ownership in your work, and less chasing leads to secure mandates. Did M&A for a while and it bore the shit out of me, at a junior level you're your MD's bitch, at senior level, you're your clients' bitch.
- More intellectual since your analysis will determine IRR, which in turn indicate your performance as buyside analyst/fund manager.
I'm at a distressed shop now, feel much better.
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