A big opportunity

I recently completed a position as an investment banking analyst. I moved a month ago to a position in a large bank, of a corporate finance analyst (with an emphasis on commercial companies and leveraged finance). I enjoy my work and learn a lot from it and at the same time, my dream is to become a managing partner in a private equity fund at a relatively young age. I was contacted by a managing partner in private equity fintech and real estate, with whom I previously interviewed, for the position of associate and/or vp. The position will report directly to him and I will have to manage complex projects and work with many interfaces in the fund. Considering the tempting offer and the fact that I just started in a new place (which is interesting and educational ), what do you think I should do?

 

Ah, the classic high-finance conundrum – to leap or not to leap, that is the question! Based on the most helpful WSO content, here's a bunch of bananas for thought:

  1. Timing in Current Role: You've only been in your current role for a month. It's a short time to assess whether it's the right fit for you long-term. Plus, a quick jump might raise eyebrows on your resume. It's often wise to show some stability, especially early in your career.

  2. The New Offer's Potential: The role you're being offered sounds like it could catapult you closer to your dream of becoming a managing partner in a private equity fund. Direct exposure to a managing partner and handling complex projects is golden.

  3. Learning Curve: You're currently in a learning-rich environment. Weigh the learning opportunities in your current role against those in the new offer. Which position will accelerate your growth more effectively towards your ultimate goal?

  4. Cultural and Work-Life Balance: Consider the work culture and life balance each role offers. The new role might demand more of your time and energy, but if it aligns more closely with your ambitions, it could be worth the trade-off.

  5. Long-Term Vision vs. Short-Term Gain: Sometimes, a bird in the hand is worth two in the bush. But if those two birds are private equity eagles, you might want to consider grabbing your binoculars and taking a closer look.

  6. Negotiation Leverage: If the PE firm really wants you, they might be willing to wait or offer even better terms. Your current position could provide leverage in negotiations with the PE firm.

  7. Honest Assessment: Take a step back and honestly assess both opportunities. Which one gets you more excited? Which one aligns with your values and where you see yourself in 5-10 years?

Remember, it's not just about the role; it's about the trajectory. If the new opportunity significantly accelerates your path to the top, it might be worth considering. But don't forget to factor in the risks and the potential bridges you might be burning. It's a tough decision, but hey, being in demand is a good problem to have, right? Good luck!

Sources: Employment Dilemma, Full-Time Dilemma - 2 Offers, Is there anything that I can do?, Should I leave IB?, VP Offered Coffee or Lunch; What should I take

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Evaluate the opportunity in a vacuum. Would you take it?

Then raise the bar significantly considering you’re leaving a job very quickly and that will have meaningful ramifications if the next spot is a dumpster fire, see if you get to the same answer.

Keep in mind, if you leave quickly, end up at a new spot where you boss calls you slurs on a daily basis, you’ll find yourself interviewing for another job and will need to explain why you can’t seem to sit still for more than 6 months. Doesn’t even need to be that dramatic. You could be this partners “guy”, he could get pushed out and you’d be orphaned. He could be going through a divorce and be checked out and you’d be collateral damage as he does nothing at work. He could be a bad investor, maybe you just don’t like him, maybe his bosses don’t like him, etc.

While the explanation to a new employer may make sense, it will still be a leap of faith the next firm will need to make in order to hire you. Goes without saying they won’t have to make that same leap of faith on other candidates.

Keep that in mind.  Bar for jumping ship in rapid succession should be very high and situation dependent. If you’re at SocGen ABS team with an offer from KKR or StonePoint, sure, jump on it. If you’re at Barclays levfin with an offer from LevineLichtman — different calculus entirely.

 

Thank you very much for the detailed response! You definitely made some important points. This is about a transition from a large bank to a private equity fund that operates under a large institutional body (and is focused on fintech in the real estate field). In my opinion, after thinking about things, although this is an interesting opportunity, more opportunities will open up in the future and perhaps I will still work with him in the future. The question is whether this A transition that is usually customary - a senior analyst for leveraged financing for corporations at a large bank, to the position of an intern in private equity (or I will have to accumulate many years at the bank before I make the transition). And again, thank you very much.

 

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