Does it still make sense to be a PE associate at 29 years old?

I’m 27 now and will soon become an associate. However, I also got a offer for a top MM PE with $2Bn+ fund for 2024 in the west coast focusing on Software buyout. The issue is that I will be 2nd year IB associate by then. And, I will be the oldest PE associate in the history of PE. It is a top notch fund, but i don’t know if I’m just too old for PE now.

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oldest PE associate in the history of PE

Melodrama and jumping to conclusions won’t suit you well as an investor. My fund, same general size as that, has had a 30-year old associate before. It’s a little weird, but no one really cares. By the time you make VP / principal no one will notice a few years here or there anyway, and it may help give you some executive presence in management meetings

 

I’m going to be good at what I do whether it’s a investor or banker. To put it in perspective, I sourced a $200MM sell side M&A on my own, as a 2nd year analyst, and we closed the transaction after 1 year by repeating being in front of the client. My current team likes me and I like them. People don’t care when I come to office or question how I put together the deck. Obviously VP will still give me some direction or give me comments to turn. But, overall I’m in a good place where everyone from analyst to MD respect me. Now, going to the buyside do seem interesting but I don’t know how much more difference is the work and whether the money is actually that good. I have been top bucket past few years and I will continue to be top bucket and still on track to get 80-100% bonus this year. Long story short, I’m the type of person that won’t let my competition outwork me, but at the same time I do realize how important it is to make the right choice. End of the day, is it worth it to throw away a VP role and start as a PE associate?

 

Your 6:56pm comment has the answers to guide you.

You're in a very different position than the typical associate candidate. On-cycle at this point is such a stupid arms-race for the 'most likely to not be an idiot' candidates who are strong on paper that it happens a couple months (and in recent years, weeks ... ) after training. These analysts do not have any kind of informed opinion on what interests them, what type of deals they appreciate, which fundamental skills in the basic repertoire of a generic white-collar professional are their relative strengths ...

You have worked for years. You've proven strong performance (your colleagues trust your work product and grant you autonomy). You know yourself and where your strengths lie. Lastly and most importantly, those strengths happen to be some of the more inimitable and uncoachable: business development, and probably interpersonal skills too.

Those happen to be portable (they would apply just as much in private equity), but the telling comment is that nothing in your words screams gung-ho "I want to do buyouts because X or Y". You don't know if the work would be more interesting. 

Based on that point alone I would say it's not worth switching. It sounds like you're set up remarkably well in your current role. You earn well, lifestyle sounds great, and you have the thing that minimizes the psychological hell common to this industry: trust and independence from leadership.

Don't let FOMO pressure you. If the potential role truly interests you, and you've done your diligence by speaking to current and former associates and VPs who have given you truthful answers about the lifestyle and culture such that you're satisfied on that dimension, and the seniors are people who clearly respect their coworkers and are willing to invest in your development ... sure, it makes sense to consider trying it out for two years. But if this is just a "I have to do private equity because everyone knows it's better", quash that shit.

Keep crushing it, man.

I am permanently behind on PMs, it's not personal.
 

To be clear, your responsibilities as a PE Associate are like a mix between banking analyst work and banking associate work. Still tons of PPT, excel, and BS work. If you really love the prospect of investing, then it could be worth it. But it sounds like you're enjoying your gig and have a great path to promotion, and from your post it screams FOMO / grass is greener syndrome. I'd take a deeper look at what exactly excites you about the new job, and whether you'd get the same pros at your current role.

 

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