Comparing the alternatives to PE after associate program

Based on the most helpful WSO content, here are some detailed insights into the alternatives to PE after an associate program, focusing on upward mobility, compensation potential, work-life balance (WLB), exit optionality, and the likelihood of breaking in given your IB/PE background:

1. MF Private Credit / Direct Lending

• Upward Mobility: Generally good, with opportunities to move up within the firm as you gain experience and prove your value.
• Compensation Potential: Competitive, often comparable to traditional PE roles, with potential for significant bonuses.
• Work-Life Balance (WLB): Typically better than traditional PE, though it can vary by firm.
• Exit Optionality: Strong, with opportunities to move into other credit-focused roles or back into traditional PE.
• Likelihood of Breaking In: High, given your IB/PE background, especially if you have experience with leveraged finance or credit analysis.

Examples: Blackstone Credit, Ares Direct Lending, HPS Direct Lending, Oaktree Private Credit, Apollo Direct Lending, Sixth Street Direct Lending.

2. Private Special Situations Investing

• Upward Mobility: Good, with a focus on flexibility and a higher risk-return profile.
• Compensation Potential: High, often with significant upside due to the riskier nature of the investments.
• Work-Life Balance (WLB): Can be demanding, but varies by firm and specific role.
• Exit Optionality: Strong, with opportunities to move into distressed investing, turnaround management, or back into traditional PE.
• Likelihood of Breaking In: High, especially if you have experience in distressed or opportunistic investing.

Examples: HPS Strategic Investment Partners, Apollo Opportunistic Credit, PIMCO Private Special Situations, Sixth Street Global Opportunities.

3. Lower Middle Market (LMM) PE

• Upward Mobility: Good, with more opportunities to take on significant responsibilities and potentially move up to partner level.
• Compensation Potential: Generally lower than larger PE firms, but with potential for carry and significant upside.
• Work-Life Balance (WLB): Often better than larger PE firms, with a more entrepreneurial environment.
• Exit Optionality: Good, with opportunities to move to other PE firms, corporate roles, or start your own fund.
• Likelihood of Breaking In: High, given your experience in MM PE and IB.

4. Secondaries / Fund of Funds (FoF) Investing

• Upward Mobility: Good, with opportunities to move up within the firm or transition to primary investing roles.
• Compensation Potential: Competitive, though typically lower than direct investing roles.
• Work-Life Balance (WLB): Generally better than direct investing roles, with more predictable hours.
• Exit Optionality: Good, with opportunities to move into primary investing or other roles within the asset management industry.
• Likelihood of Breaking In: High, especially if you have a strong network and experience in PE.

Examples: Lexington Partners, Adams Street Partners.

Additional Suggestions

• Real Estate Private Equity: Offers good upward mobility and compensation potential, with a focus on tangible assets.
• Infrastructure Investing: Growing field with good compensation and work-life balance, focusing on long-term, stable investments.

These options align well with your criteria of staying in the private markets, avoiding public markets investing, and seeking roles with greater upward mobility and career-track opportunities.

Sources: Can someone break down PE Associate exit opportunities?, MM PE Associate: MBA Programs beyond HSW, IB -> PE -> MBA -> IB -> PE, Pre-MBA Private Equity Associate, IB or PE has easier upward mobility? Compensation?