Career Crossroads
Early 30s. Married. FOF Director. Love the work. Employed but looking for a new role. FoF has very limited job availability especially for mid-level even when looking across different investor types. Trying to figure out what to do with my life. I think for firm political reasons may have 1-2 years left at the role tops before my team is cut, despite extremely strong performance.
My current cash comp is about low 600s all-in in NYC. I think it's under for the market especially with limited carry and 6 year vesting schedule. Insane culture and hours. Leadership was angry people took off for Christmas while taking off 2 weeks himself (I worked).
I am getting near the end of a process with an employer in a great location but comp would range from 380-530 depending on annual bonus and still no carry. I've really anchored to the worst case of the range. Allegedly the culture is much better. I calculate on the low end it's about 100k less take home worst case.
I have a couple of other decent job leads that will likely be higher comp than this prospective opportunity but in worse location and in theory also a cultural improvement over present. Would like some thoughts on the following:
1) Thinking about my career, I see no path to that next tier of comp (800+ imo) neither at my firm nor in any job posting searches / headhunter talks. It makes me wonder if it's worth it to grind out 10 to 25 years of saving essentially 200k-ish per year if I was even able to find a role flat to this comp. Saving 200k until age 55 yields about $14M at 7.5% returns. 100k saved per year turns into over $10M. The 4M difference at age 55 seems marginal but open to feedback. My wife and I aren't spenders.
2) How can I vet the culture of this opportunity? People seem nice but that's easy to seem so in an interview. There's been 0 turnover so no alums to speak with. At that level of haircut I need to be dead certain WLB will be better.
3) Is there any thing I can try to negotiate to make this cut sting less? They're 2 days in office now but think they'll get back to 5 over time. I'd be very happy at 500k TC
4) Anyone know of any mid career financial services focused resources or coaches who can help think through this?
5) given my potential execution within 24 months would you take this role or hold out?
I clearly have a lot of hesitancy about the cut but my current role is not sustainable and just wanted to get some feedback from the community and feel like I haven't overlooked anything.
Is your calibration on what “market comp” is accurate? At my firm (MM buyout PE in NYC) cash comp at a similar age / YoE experience level as you is actually a bit lower than what you’re getting paid right now - closer to the $500-550k range. Obviously carry is a slightly bigger part of the equation but the vesting terms don’t sound terribly off from what you’re getting. Looking at buyout PE comp surveys, the reality is making >$600k at any non-MF would require you to be at the principal level, which sounds similar to your age. Honestly, unless if my perspective on the FoF world is off, it sounds like your current comp is fairly rich. Based on what you’re seeing in the market and talking to headhunters, it sounds like you’re arriving at that conclusion as well.
Based on the most helpful WSO content, here are some insights and actionable advice for your situation:
Career Path and Financial Trade-offs:
Vetting Culture:
Negotiation Tactics:
Mid-Career Resources:
Decision-Making:
Ultimately, weigh the trade-offs between comp, culture, and long-term career growth. If the new role offers a significant improvement in WLB and aligns with your long-term goals, it could be worth the short-term financial hit. But keep exploring other opportunities to ensure you’re making the best possible choice.
Sources: Joined New Firm; Complete Non-Cultural Fit > Let Go in 6 Months, I Don't Want to be Underpaid, Work/Life Balance - Hours, Is this associate compensation competitive?, Where is the compensation in banking? Is it worth taking a pay cut for the long-term prospects?
Your current comp sounds pretty high tbh for pure primary FoF, low 30s age. I’m in secondaries and thats on par with most places in NYC.
Also the comp range of your current search is quite wide, what’s up with that?
I do coinvest as well if that matters.
Range is because the new place it's wed to a benchmark and performance versus that.
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