Common Exits from PE
I'm the typical 2nd year in PE...confused, burnt out, but also confident that PE is not for me, and I'm sure there are many others out there who feel the same. I'm in the process of assessing exit options and would appreciate some nuanced perspectives / pros vs. cons on the more common exits like tiger cubs, activist funds, crossover funds, public markets investing at multi-manager platforms, venture capital, growth equity, corporate strategy, product / operations at startups, starting your own business (please add other ones if I've missed any). Any insight or personal experience would be great.
bump
depression
No see, that comes with the job.
Suggest adding LP roles: Pension funds, SWFs, FoFs etc. the value proposition is slightly different to a GP role. While this will depend on the specific fund but generally: less intense work, lower comp m, friendlier culture and depending on your interest more intellectually stimulating.
Which are the best jobs for endowments/SWF/pensions, respectively? Is size of AUM a decent proxy for desirability of the job? How does one evaluate these opportunities that have less discussion surrounding them?
What don't you like in PE specifically? cause answers will differ accordingly. If you don't like transaction processing for instance then forget growth equity venture corp dev etc.
Give us more insights
I agree broadly. Especially when it comes from moving down to growth and later stage stuff. That said Having worked in large LBO and seed/A before, I will say the transaction dynamic in venture is not comparable. For venture that shouldn’t be a turn off. You’re not shuttling lawyers and consultants around, diligence is less data driven. Where this flips is when you start looking for PE returns (eg hitting singles and doubles) rather than looking for every investment to be a triple or HR. Also whether or not you use bankers is a good indicator of whether or not the transaction dynamic itself is going to be a point of pain in and of itself.
appreciate you trying to clarify, thank you
I think what you're saying is right, the general frustrations associated with process and process management is probably a key part of it, and I'm also interested in working with more earlier stage companies (for context, I'm at a MF right now, and most of the underwrite is financial engineering) that actually could use someone in their corner as they go through the exciting but challenging growth years
hope this helps
FWIW I spent several years in LMM PE before lateraling to a MF, and the MF approach to PE is an entirely different world. The scope of responsibilities for investment professionals is so narrow, the decision making is extremely hierarchical, and in general there is just far less variation to your day even through the principal level.
So what are you planning to do next?
Grinding it out to become a partner here or are you looking for something else?
Interesting. I’m in MM atm and so curious to hear how you’re finding it and what you prefer, and what may be best long term and how you made the move.
Without the risky assumption of betting on yourself to be the next Warren or George, if you want true wealth, I would suggest product/operations at a blue-chip or a high-quality start-up, and then start your own business.
This might be unpopular opinion, but from what I have seen, this is how most family friends achieved their wealth: entrepreneurship.
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