Don’t know what to do…
As the title says…I don’t know what to do. Would love to hear others’ thoughts.
Currently work in brokerage. Was sniffing 7 digit comp when the market was rolling (< 5 years of experience). It has been a complete grind the past ~18 months. Extremely grateful for where I landed and the opportunity it has afforded, but also have always had it in the back of the mind to eventually do my own thing…
Recently, I have been approached by a well respected, locally based PE firm. Different asset class, but potential to gear up in the asset class in which I work currently. Very interesting opportunity and giving it the proper due diligence. Don't have a ton of clarity yet on what comp could look like, but so far the feedback has been “comp has never been an issue”.
The wrinkle in all of this is if I want to eventually do my own thing is it better to just go now. The rationale for that is I feel like a lot of people that are known today got their start coming out of the GFC. Also, while I think there is a ton to learn by joining the PE firm, I wonder if that locks me in for awhile to collect carry, etc? I feel like ideal time at the PE shop would be 2-4 years to round out some skills, but it concerns me I may leave a lot of comp on the table.
i realize the going out on your own has a whole host of other issues to address (ie how much money do you need to have in the bank to get going, what’s a realistic ramp up period, etc.).
I feel very burnt out on pushing paper for other people, and can envision a lot of joy and satisfaction in rolling up the sleeves and maybe doing some unglamorous tasks on deals in which I have a piece of the pie. Have a very institutional background but would be content to take that background and apply it to more non institutional deals (at least to get going).
Has anybody else been in this position before? How did you approach/proceed? What did you do right? What would you have done differently? Much appreciated.
Based on the most helpful WSO content, it seems you're at a crossroads many in the finance industry face: the decision between continuing to work for others or venturing out on your own. Here are some thoughts to consider:
Assess Your Risk Tolerance: Starting your own thing is inherently riskier than staying in a stable job. You mentioned the potential to learn at the PE firm, which could be invaluable. However, if you're feeling the entrepreneurial itch and have confidence in your ability to succeed, this could be a compelling reason to strike out on your own.
Financial Preparation: You're right to consider the financial implications. It's wise to have a solid financial cushion before starting your own venture. This could mean having enough savings to cover your living expenses for an extended period or securing funding for your business.
Learning Curve: Joining the PE firm could offer a learning experience that might be difficult to obtain on your own. The skills and knowledge gained could be beneficial if you decide to start your own business later.
Timing and Market Conditions: You mentioned the success of those who started post-GFC. Market timing can be crucial, and if you believe the market is ripe for new entrants or there's a niche you can exploit, it might be an opportune time to launch your own venture.
Compensation vs. Equity: While the PE firm might offer a stable and potentially lucrative compensation package, owning your own business could mean the potential for even greater long-term rewards through equity. However, this comes with the caveat of increased risk and variability.
Burnout and Passion: If you're feeling burnt out, it's important to consider your mental health and job satisfaction. Doing something you're passionate about, even if it involves more "unglamorous tasks," could lead to greater personal fulfillment.
Networking and Mentorship: Before making a decision, it might be helpful to reach out to mentors or others who have been in a similar position. They can offer insights and advice that are specific to your situation and the industry.
Remember, there's no one-size-fits-all answer. It's about weighing the pros and cons and making the decision that aligns with your personal goals, financial situation, and risk tolerance. Whatever you decide, ensure it's a calculated move that you're prepared for, both professionally and personally.
Sources: How to Start an Investment Bank/Brokerage Firm without Being a Licensed Broker?, Thoughts on Starting Investment Bank/M&A Advisory for my Company, Interview with a Senior Software Developer for a Prop Trading Firm, https://www.wallstreetoasis.com/forum/private-equity/then-and-now-compbanker?customgpt=1, Why Not Start Your Own Shop?
Thanks Monkey Bot
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