2nd Years at 2 & Out Shops
For those of us who didnt get into a B-School they are excited about, how are the lads thinking about options for employment (or self employment) as the clock ticks on their PE careers?
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Based on the most helpful WSO content, the situation you're describing is not uncommon. As the end of the 2-year PE stint approaches, and if B-school isn't the next immediate step, there are several avenues that individuals typically consider:
It's important to start planning early and consider what aspects of the PE role you enjoyed and what skills you want to continue using. Reflect on what industries excite you and what type of work-life balance you are seeking. This self-reflection can guide you towards a role that is fulfilling post-PE.
Sources: Reflections on Year 1 at Booth, https://www.wallstreetoasis.com/forum/private-equity/leave-pe-early-or-stick-it-out-2-years?customgpt=1, PE Senior Associate - What next?, Staying a third year as a PE associate vs. doing something nontraditional, The PE career path
Bump - in a similar position and curious how others are thinking about it
Applied R2 so still waiting on decisions which pushes the timeline out. Honestly wondering if it would be that bad to just take a 1-3 month break if I can't line something up in time...
What's that?
Bump. Interested to see what people are doing
Probably throw myself off a roof?
Don’t scare me bro
I left PE after my 2 year program was up and worked a remote corporate strategy job. Pros were getting to travel a lot, work on side biz projects, get in great shape, improve relationships. Cons were less money, less defined career path, candidly (in the current market) no real path back to high finance, slower pace at work (good and bad thing). For me, my mental health, physical health, and relationships were an absolute disaster so I just needed the change of pace even if intellectually I wanted to stay in PE.
I would recommend that you think critically about both what your near term needs are (immediate health, mental wellness, relationships) and what your long term desires are. Both are equally important now that you’re older and are frankly now living the life you built for yourself. The prologue to real life of education and early professional training is largely over and now the story is on and it’s up to you to determine if that story you’re living is worthwhile or not.
Thinking of heading down that path as well. Tired of the rat race. How did you end up landing your current role and how much of a comp discount did you take?
Market cash comp post PE associate program at a corporate is $175-225K + some amount of equity. I had a very high standard and refused to take anything less than this range - your skillset post PE is extremely differentiated and valuable in corporates and you deserve to be paid appropriately. The appropriate title varies but is somewhere between manager / senior manager / associate director. At a PE portco you can likely get a higher title and potentially even higher comp. After 2-3 years operating, you can get opportunties at PE portcos that pay $300K cash + equity. PE firms love to hire ex PE guys with operating experience because they know you understand what information / data / metrics matter and are generally more sophisticated. You do need to practice telling your story a little bit differently though, where you're highlighting the portco work you've done and you're specifically highlighting directly transferable skills (modeling, budgets, executive deliverables, etc.)
In terms of finding the next opportunity - Network with ex finance (IB / PE) and consulting people in businesses. They should know the quality of the skillset you bring to the table and they should have an appreciation for how much they'd need to pay to hire someone with your background.
Total process should take 6 months at minimum and will require a high volume of applications and interviews. Getting a differentiated corporate exit is just as hard, if not harder in some cases, than getting another PE / HF role. Approach it was the same intensity and commitment.
Highly recommend burnt out PE associates to look at long-only investment firms. Made the transition a couple of years and could not be happier at pace of life, quality of analysis, and overall balance. Pay is surprisingly better than you think and could outweigh a comparable PE path if you land the right seat.
did you find that LO shops are open to that background (i.e., 2-3 year of PE) compared to people with HF experience?
Could you elaborate on the process to transition from PE to long only? Did you first do b-school, what did you portray in interviews to firms, etc.
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