Do you regret doing PE?
I’m thinking of recruiting for PE but have spoken to many people who said it’s worse than their banking experience. Curious if anyone has regrets about moving to the buyside
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From the perspective of someone that went to LMM PE from a MM IB
Pros: Better WLB for me, more interesting work, feel like I've gained a broader skillset if I wanted to start my own company
Cons: Significant cash comp haircut to IB, my PE firm's returns suck so carry is worthless, more stress dealing with underperforming portcos vs. you don't have to worry about this in IB after you close a deal
Overall in hindsight, if I could find a good lifestyle IB group where I liked the people and deal flow is solid (but not crazy), I'd choose that over PE. Actually, would have done 2 years in PE and then go back to IB instead of staying in PE
Would you consider quitting PE soon to start your own venture?
I'm actively considering alternative career choices but not sure I have the risk/reward or business plan to start my own business right now. I'm currently thinking (1) lateral in PE and hope next shop is better (returns/culture/path upward) and (2) corp dev across various industries
Echo comment above
I sleep more and my WLB is better (but was at a 2am/3am everyday type of shop) and my comp is also better but nonetheless if you had to ask me “are you happier?” The answer would probably be No and even my friends see it. Not saying I regret moving as it’s good learning and better for health, but the environment really sucks compared to banking, people are more serious, so much more political, they can also keep you at your level for years once you have carry given at that point there’s less chance you leave. There’s a ridiculous amount of reporting work especially if you’re at a listed fund with continuous requests to collect data coming in. Also I miss having juniors to take care of - in banking I had analysts and intern that I could teach something to and I always found it super rewarding to see people get better and grow into their role. Also most companies out there are average at best + there’s huge amounts of capital available so don’t get fooled thinking you’ll be the big dog in the room. Your MDs will still be wasting time on crap ideas and there will be an equal amount of “licking somebody’s ass” as in banking
Now don’t want to disincentivize you but all this just to say that personally I really miss a lot of aspects and if I had a better WLB I probably would have stayed. I think my experience is also more negatively because I really don’t like my colleagues (they are all bots) but I never once woke up in banking thinking “I don’t want to go to the office today” while that’s not the case case. If you decide moving I recommend you make sure you have a good gut feeling about the people
I did PE for 2 years at a MF and went back to banking (BB), both in sector teams.
I don’t regret it at all, but I found the environment in banking (and especially my prior team) to be much more collegial, team-oriented and with more interesting diversity of work (e.g. working with lots of clients & across the financial product spectrum).
Promotion opportunities were slim and material carry was too far away to motivate me to grind out another 5-10 years in that work environment.
Did you go back to your same BB team you were at before MF PE? Assume it's easier to recruit back.
Are you still there today and what is your position (assume VP)?
What is your long-term career plan now - try to make it up to MD in IB?
Yes, I went back to the same team I was in before. I kept in touch with them and they invited me to go back as a VP (was an Associate when I left PE).
I’m still open minded but I definitely want to get promoted to ED/D. Depending on how that goes, would either shoot for MD or move to a corporate.
Good for you. I think a lot of people who want to do this fear it due to external perception, did you have similar concerns and how did others receive the move around you, and in PE?
Of course! At some point, you have to start living life for yourself, though.
I was surprised at how supportive my network was both in PE and in investment banking. I had some specific circumstances in PE that made a lot of sense to move from, and ultimately, everyone just wanted me to be happy. A couple of people in PE were overtly against the move, but they’re still drinking the Kool-Aid.
Bro I’m seeing a whole lot of like $300-$355 all in. Wouldnt taking strategic associate offers of like $270-$350k and work 50-60 hours be much better than like the 70+ with stress?
Where are you seeing these opportunities? recruiters?
Yes outbounds and also LinkedIn
yeah definitely, but from what I understand $300k strategic finance jobs are few and far between, with more common comp for these roles significantly lower than that. Or maybe Im wrong and should start looking a little harder.
My girlfriends roomate did 2 years EB 1 year UMM and is now in strategic finance with an all in of $345k and works 55-60. Not bad. She got it from linkedin.
What are the corporate roles that pay $300k+? Size of company doesn't outright matter right, as don't fortune 500s pay like $170k all in? I assume hot startups right now in the space are paying the most. Also how acquisitive the company is too I assume matters...
If by strategic finance, you mean OnlyFans, that doesn’t count.
Yo dude, that was like, so hilarious. You should make a post with a similiar joke everyone will love you.
Holy shit PE people are such bots lmao
Kind of. I did 2.5 years IBD in CS before going to a European MF (CVC/EQT). Hated the team and boss so I left. Did 2.5 years of that and then went to a 10B+ AUM growth equity shop and did 3 years of that - loved the team and the boss but returns were not showing and I didn't see a future here.
I'm back in a BB doing IBD again as of a few months ago (my ex boss recruited me). I think I definitely would have a higher net worth if I did IBD all the way, but I would probably wonder if I should've done PE instead. Having been on the other side, eh, grass isn't always greener. I think PE can be better, but you need to be in the right team at the right time. So it's a luck thing.
What made you go back to IBD? Did you ever consider going into a startup also?
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