Hi all,
This will sound like a silly question, and like one that I should know the answer to already perhaps. However, my whole career thus far I have essentially optimized for the opposite (I was a big hardo). But on the other side of 30, life seems different. Nothing new. The problem is everyone I know is also a hardo.
So I don’t actually know how to trade 30% of comp for 30% of lifestyle. Or something like that.
Secondaries? Credit? IR? RE?
Seeking to make a transition here because I feel that more and more I do this job to feel important and in return pay a cost in the form of the happiness of myself and those around me, which is now no longer a preferable deal for me.
Honest question and greatly appreciate any help.
A good BD role at a fund - there are a few threads on here with detail if you search around. I truly believe it’s the best spot in the industry for WLB/comp.
Thanks for the insight here — my immediate reaction is to find this compelling. Will look at those threads. You have any personal / primary source experience with it?
Yes. I’m the OP of the 2024 BD Comp thread (though it’s a disappointing thread with only two data points) and have posted in the other BD threads that pop up occasionally. Your background would be interesting as not a lot of people tend to make the switch from pure investing to BD. But I make probably 10-20% less (and perhaps it’s even closer but I don’t have visibility into their comp) while working 50%-60% less. With the added bonus that my work is enjoyable (to me, at least).
I think the immediate issue is that a 30% reduction in work typically comes with a 50%+ reduction in pay (especially long term w/ carry). For example, you could go from a VP in PE clearing $750K annualized (with carry) to $300K in corporate development/strategy and cut your hours from 70 to 50. You'll find it pretty hard to find a seat that pays you $400-$500K+ with 50 hours at this level of experience, unfortunately.
Think some potential exceptions are the ones you listed: private credit at a sleepy direct lending fund, secondaries. IR will be a pretty large haircut.
I was born to indiscriminately shell out s600 uni’s at 92 fr
Would note on secondaries, the only way to avoid a material pay-cut is the MFs or UMM equivalent funds and the lifestyle improvement won’t be significant.
Coming from a large secondaries shop, this is true. And on the lifestyle point, we can usually tell who the people trying to hop over to take it easy are. The hours are actually genuinely better, but we've seen people who take it as a license to coast and given the lean teams that really drags everyone else down.
Long only by far
Oh shit I barely considered this due to minimal exposure to public world. Some friends in HF land but more so pod shops and some of the SMs.
LO SMs like Holocene? Is that what you mean or more like a fidelity? Really appreciate the insight man!
Holocene is not LO in the least lol
I recommend looking into LP roles. A lot of large endowments and foundations are split across publics and privates, so your skill set would likely translate well within the privates team. Hours are much better than IB or PE at ~50 hours (60 hours at the very top), and the work is really interesting (from canvassing interesting strategies (I.E. who are the best operationally focused LMM/MM managers focused on A&D) to working across venture, growth equity, traditional LBO strategies, and private credit). Very low stress job too. Pay at the director level is a bit all over the place ($250k-$500k, with larger firms Harvard Management Company / PRINCO / MITIMCO paying the most), but the MD pay is pretty solid ($1-$4 million for most ramped up MDs at the Tier 1s. Since these orgs are non-profits, you can look at their IRS 990 forms to see how much staff are paid.
Damn that sounds awesome. And actually a very interesting role too, I kind of like meta-analysis and discussing this industry more than any one particular deal, which is perhaps why I spend so much time on WSO..
Do you have any personal / primary source experience with these types of roles?
Yeap, I have worked/work in this space.
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