Choosing Corp Dev Over PE post 2 years at MOE / EVR? I want to, but peers telling me I have "given up" if I do
Got my offer for next summer when I wrap up my 2 years. I am doing Corporate development at a tech company that is paying $175k all in and 40 hours a week, no weekend work (talked to many of the past corp dev team they all confirmed those were hours).
I know other's opinions do not matter, but everyone around me is roasting me that I have "given up" on the finance and making money track, and am foolish to not go to a PE / HF gig after my EVR/MOE stint (also what 90% of my analyst class is doing too).
For me, I am honestly just burnt out. The hours were inhuman, the stress tore me apart. I just want out. I have heard PE and HF are worse. I realize I should just tune everyone out and do what I want to do (which is the job I signed) but I guess wondering if anyone else went through the same thought process, etc.
Based on the most helpful WSO content, here's what you need to know about choosing Corporate Development (Corp Dev) over Private Equity (PE) after two years at a firm like Moelis & Company (MOE) or Evercore (EVR):
Key Points:
Lifestyle and Work Hours:
Compensation:
Career Trajectory and Perception:
Personal Considerations:
Community Insights:
Conclusion:
Choosing Corp Dev over PE after your stint at MOE/EVR is a personal decision that should align with your career goals and lifestyle preferences. Despite the pressure from peers, prioritizing your health and happiness is paramount. Many have successfully made this transition and found it to be a fulfilling career path.
Sources: CorpDev to PE prospects - creating a long-term map / success stories, Corp Dev after post-MBA PE?, Anyone actually like their corporate development job? (Post -IB), Leave PE for Corp Dev VP role?, Handling Stress / Burnout in Private Equity
You only give up once you stop trying. Believe it or not there are a bunch of ex Wall Street people in corporate who are now business unit CEOs or leading corp dev teams or serving as CFOs. Most of those people wanted to work hard and be ambitious but wanted to have the flexibility to set boundaries and to feel like they’re actually working on a team.
Whatever you do, commit to yourself that you will make the most of it. If you go into PE, try and learn as much as you can. If you go corporate, commit to trying hard at the job and learning your industry deeply but also commit to trying hard at life (work out every day, commit to learning new skills or interests in your free time, take relationships more seriously). Leave nothing on the table and be intentional about getting the most out of the choice you made.
Brother… no matter what you end up doing, you’ll truly uncork life when you stop giving a shit about what other people think. The same people that tell you “you’ve given up” are the ones that will be depressed at “Insert MF”, bald, with zero life outside of work. And this is coming from someone in PE. You won’t make life changing money in either so just do what satisfies you and allows you the opportunity to save enough money and start your own venture in the future, whatever that may be.
Thanks, I appreciate that.
For me, it truly and genuinely is less of a "caring what they think" like oh man hes not in PE, and potentially having some truth to what they are saying. Like am I truly giving up on making really good money and not going to PE when I have the most cookie cutter backround for it? (HYP, EB IB NYC).
Would you agree 95% of people dont make it past associate / senior associate? What does it take to truly make 7 figures in PE? Why do you say that you can't make good money in PE? Just curious.
The stat is flawed on its face because of the % of people that simply choose a different path. I totally understand where you’re coming from but there really is no golden pot at the end of the rainbow until you’re ~38+ at the minimum and start to really reap the benefits of carry. You don’t get rich from cash comp. Unlike the HF world, even the true outliers don’t reach life changing money until you’re 40 but more like 45+ by most likely spinning out to start your own fund or being fortunate enough to ride the rocket ship at a single firm. It’s possible and certainly still happens but my point is that you could theoretically also make good money grinding through that same period in different areas. Any path to making the life changing money you’re idealizing in a corporate role will take time, often a decade plus.
I'm no longer in PE (can't speak for HF at all), but spent enough time in PE as an experienced mid level to get carry that may materialize to ~$2mm (this is with good carry allocations at a historically strong performing fund), and if it does materialize (i.e., subject to performance), it'll happen over the course of the next ~10 years. Unless you can make it to VP and at a minimum stay several years as a VP or higher (due to carry vesting), carry doesn't even really need to be included in your math.
This really means you'll probably need to stick it out in PE for at least ~5-6 years after your IB stint. ~2 or 3 as Associate/Senior Associate, plus another 2-3 as a VP (if you get promoted) to see any vested carry allocations, and those carry allocations may translate to distributions over the course of 10 years. And this is all contingent upon actual fund performance, which is always a big TBD; even the best investors have $0 carry funds. So if you're not willing to commit to atleast the next 5-6 years in PE, I would not bank on making any money from carry in your calculus. And you're right, even if you do find a more "chill" LMM/MM PE shop, the mental demands and stress are still way higher in PE than IB. If you're this burnt out already into your analyst stint, you would know best, but I strongly suspect committing to PE for 5+ years probably makes you want to blow your brains out.
So as far as the money comparison, you're more realistically comparing how much more you'd earn in PE for a couple years vs. corpdev for a couple years, based on equal tax treatments (since no carry). Obviously depends on which PE shop you go to, but you're kind of directionally left with either: 1) MF/UMM that might pay ~$275k-$350k/yr but there's a very high probability you won't even make it a year cause you'll hate it and have to recruit shortly after starting (while working obscene hours too); or 2) MM/LMM PE shops that might pay ~$225k-$275k/yr and you might make it 1-2 years, but after taxes isn't that much more than had you stayed in corpdev.
For what it's worth, PE can honestly be incredibly interesting, especially as you move up (that's assuming you like the job itself though; which not everyone even does). But it definitely isn't one where the money is that great if you don't or can't (i.e., let go) stick around for like 10+ years. And by that time, the golden handcuffs become very real making leaving even harder because you've worked so hard all these years and finally starting to make real $$$. I've seen many peers/partners end up in that situation. Don't love their job (some even hate it, including due to burnout), but too stuck financially to leave too.
(I'm not suggesting you should lean one way or the other. Just specifically that the financial difference probably isn't as big as what you might be contemplating)
For what it's worth, 3 out of the 5 principals at my tech UMM firm said they wish they would have done tech coming out of banking. Cash comp is ~ the same and equity upside is real (vs carry which people dont really seem to value). Do whatever job / lifestyle you want.
I know multiple people from Moelis/Evercore who departed to high-level corporate gigs, honestly sounds like you need to ignore the "hardo" peers who wouldn't be happy with anything in life if it didn't boost their CV to the WSO audience of undergards
Self reflect. Do what's best for yourself and your long term goals.
Rest is white noise, including your peers / family.
First piece of advice - don't listen to your "peers", they don't live your life, they don't have to deal with the consequences.
In my opinion, the only thing that matters is a metric I made up -- your target "earnings to desired work/life balance ratio". The smartest and most successful people are not the ones who work the most and make the most money, the smartest and happiest people are the ones that efficiently maximize their earnings to desired work/life balance ratio.
I have spent the last ~5 years working on it. It'll never be perfect, you'll always either want more money or more time, and your desired ratio might change throughout life, but getting as close to optimal as possible is the way to happiness.
this is the way. great comment
Yeah dude go do PE (so I can take your job)
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