Advice from people who left?
I’d love some advice from people who left PE as an associate / snr associate. I know probably 60-80% of people in PE end up trying to stay in this industry in one way or another, but I’m getting exhausted by the stress / pressure and time commitment required. I know b school followed by Corp Strategy or Corp dev or something is somewhat common, but I’d love some perspective on what others have done upon leaving PE, particularly for those who left for better lifestyle.
I’m trying to get a sense for what’s really out there (what types of roles), compensation (and expected pay cut), work life balance, remote / in person, etc.
Any information would be greatly appreciated. Additionally, if anyone here is open to chatting live I’d be really grateful for the chance to do so.
Ended up moving to the LP side after getting burnt out after ~4 years. Somewhat of a compromise between totally going off the path vs. grinding it out, but there are a whole host of career paths out there. Had some friends move into tech, one is now into finance-focused journalism, another trying the entrepreneurship path.
One interesting counter to the risk of making a change is the risk of inaction - the longer you stay in a seat that you hate, the more pigeon-holed you become and the number of better-fitting opportunities passing you by is only increasing. I would implore you to do some serious self-reflection (which WFH has made easier) - what do you enjoy about your current job? What do you dislike? Can you realistically be happy taking x% pay cut?
I think most importantly, you need to assess what it is that isn't cutting it for you in PE. You have one of the most coveted jobs in Finance, so if you aren't happy it just means you need to tweak something.
1. Is the WLB killing you? If so, then you could transition to Corp Dev / Corp Strat / FP&A / Management Consulting for an improvement in hours, but would likely come at a pay cut (management consulting would probably have the most comparable comp but the worst hours). I didnt want to put in the hours required to excel within PE so Corp Dev was a natural choice for me.
2. Is it the granularity of the work? Less talked about on this site, but a lot of PE work is reading through legal docs, breaking out data like you do in IB, and turning comments. If this is your perspective, I would recommend Corp Strat as you are taking on much more of a consulting mindset and solving different problems all the time. Depending on the role, it may not be very heavily finance-based, and therefore you may be frustrated by the "simplicity" of the financial models you are asked to build out.
3. Do you feel like you dont matter or arent making a material impact? If you want to make a much stronger impact, consider strategic finance roles for a start up. Honestly, any finance role within the right start up would give you a ton of sway and purpose, if you feel this is what is lacking.
4. Is Finance still what you want to do? This may be the most important question. Congrats, you have won the finance game and climbed to the top of the corp ladder. Some may say that is making MD at an IB or Principal at a fund, but fuck it, Associate at any reputable fund is good enough. You have proven countless times over that you are smart, ambitious, detailed oriented, personable, and hard working. Maybe it is time to reflect on if this is what you want to be known for. In my experience, guys who make it to PE can do just about anything they want. I have a really bright friend who after two years at a top IB (top bucket every year), he left finance entirely to join the film industry. This would be an example of an extreme transition, but the point is that you are at a good point to really reflect on what you want the next 5-10 years to look like. Lastly, no one who is truly your friend will judge you for leaving finance. Finance at the end of the day isn't fascinating, it isnt thrilling, it is providing a basic service. It is a means to an end, and anyone who tells you otherwise has been in the industry too long and lost their personality.