Take strong MM PE offer or stay in banking (London)?
Currently an Associate 1 (ignore title) at an MM bank (think WB/RJ/Baird) in London and have received an offer for a reputable MM PE firm in London (think Inflexion/Livingbridge etc). I'm interested in PE but I also like banking so I could see myself working in either for the longer term. My issue is if I moved I would be taking a very large paycut (my MM Assoc1 comp is around £260-280k which is above street and the MM PE offer is £160k all in + no carry yet). I'm curious as to how comp typically scales up at MM PE at the senior levels as I don't have much visibility. Basically I'm wondering if the pay cut risk is worth it over the longer term in MM PE in terms of compensation progression and likelihood of senior progression. At my current MM I have pretty clear visibility upwards. Thanks
Stay in IB, it’s a no brainer.
Btw, how come your total comp is so high? I am also an Asso 1 in IB in London (at a BB) and make £105k fix and expect £60k bonus this year. How are your hours like / do you work a lot during weekends?
Sweatshop hours with high sell side deal flow. Basically a boutique model and deal teams run lean. Base is £140k and bonuses typically close to 100%
Is it that much of a no brainer? Worried about staying in IB too long and closing door to PE and the partner level carry comp (but idk how likely this is anyway)
How many hours do you work per week? And at what time do you usually disconnect in the evening?
Personally I will stay in IB: you make more money as a junior, you have less pressure / less responsibilities. Also, usually the best people of IB go to PE and there a fewer Partner spots available so the competition is incredibly hard (vs staying in IB where it’s so easy to become MD lmao). Also, regarding the carry: suggest you discount that to 0 given you may get it in 10 years (assuming you stay at the exact some firm (and what is you partner is toxic and have to change firm?))
Risk adjusted, PE is just no worth it at all (my view)
I cannot agree more. Promotion is way harder in PE and carry should be viewed with a huge discount given the time required (assuming you are not going to change firms for the next decade also).
Are you in PE? If so are you planning to go back to IB?
Yes I am at a MM shop. When I moved to PE a few years ago I didn't have to take a paycut. However, I see my banking classmates who have stayed all making more than I do now. They are also progressing faster with their careers (some already VPs) - they were all ranked below me back then.
I have some carry allocation but I don't expect to receive anything anytime soon. Even when the carry checks kick in, they probably just make up the cash comp gaps since I left banking. I think PE may potentially still have a more attractive long term prospective (some partners at my firm seem to be doing well) but I am also at a life stage that I will really appreciate some more cash comps now (wanting to start a family and buying a house etc) vs. hoping for more carry when I'm 40.
I had thought about going back to banking but didn't make the move for various reasons. I don't know how feasible it is now. HHs don't come to me with banking opportunities ever so it will require serious networking. My ego doesn't allow me to go back to my previous bank..
Why do people typically not make partner in PE and how long does it usually take? At my IB shop if you are good and can grind the hours, then theres strong chance of making MD.
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This has to be RJ.
What are your working hours like on the daily basis? Your comp is well above the average hahaha
Deletw
I am amazed by the IB pay - only top MF can match to be honest..
RJ pay is above street
I think staying in banking is a no brainer - it's not worth taking so much paycut. If the MM shop starts base at £80-90, it takes at least 3-4 years to get to £130-140, i.e. what you are getting paid now. From there you might get some carry allocation, but will take at least >5 years to see your first carry check. If you average it out, you might still earn less than what you could have earned. However, if you really think you might enjoy the work more, give it a try and you can always come back to banking if you decide it's not for you after 1 year.
I probably would for UMM/MF and commensurate pay. Not for MM, neither for either of those you name checked (each for their specific reasons)
Curious of what you think of both Inflexion and Livingbridge?
Sorry to be off topic but would you mind PM'ing me? I wanted to ask something re: IB at MM banks (have to make a decision).
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