Consulting vs. PE
Background: graduated from STEM school 2 years ago with a degree in Quantitative Finance. Interned in AM at a BB and did not accept the full time offer I received to instead take a financial strategy consulting position.
Have liked My job thus far and am interested in the content of the engagements I have been placed on. Additionally, I have been told numerous times that I have the behavioral tools and ambition to become a partner. The firm is also allowing me to graduate early from the entry level program to fast track my promotion.
Recently I was offered an opportunity to jump ship and work at a large PE firm, within Portfolio Management. The upfront compensation would be about the same as what I am making right now, however, I will make a lot more in the next ten years at the PE firm then I would in consulting, but I would make more eventually staying at the consulting firm if I made partner.
I am at odds with whether or not I should stay for the long run or jump ship to make more in the interim. I’m sure plenty of you have had similar decisions and so I ask for your advice.
You're saying PE would pay better for 10 years but then fall behind later on in years 11+? Why?
1.2m average partner salary for financial strategy consulting practices within my firm + Pension that pays 75% of an average of your top three years of comp.
You can make much more than $1.2M a year in PE. However, I think you should be real with yourself and do what you really like. The work in consulting is very different from PE. It is also very hard to get promoted in PE (as I am sure it is in consulting), so while it's great to look at potential earnings, it is important to consider that not everyone makes it. See where your strengths are, and that is likely where you will be most successful. Additionally, if you are making a decision solely on comp, you'll be miserable as fuck if you don't love what you're doing. I think you have a good problem to have,
Aaaaaaaand . . . ? Do I seriously have to ask you now what you think the PE comp looks like? If I wanted to pull teeth I'd be a dentist. Just lay it out.
It depends on which shop you're at, fund performance, politics, etc. But as a senior PE professional, you are looking at $1.0M to $20.0M+ a year.
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