Firm has a lack of ambition. Leave?
Joined a firm with around 400m in AUM around 4 months ago as a principal. It's a smallish shop with 8 people, everyone is incredibly nice, but I'm just finding the managing partner isn't very driven. I joined the business because I was assured that we were going to really push and do a decent sized fundraise to increase AUM and revenue but recently he told me he doesn't want to start a fundraise until Q2 '23 as our latest fund is only 40% deployed.I feel pretty bummed out since I left a high paying job for the future carry and promise we would push hard in 2022 for a fundraise.Would it look terribly if I jump ship within like 6 months?
As a starting point I think I'll probably wait until like June and make my case and if I can't sway him to start raising money I'll look elsewhere.
I think your first step as a principal is to deploy the current fund more quickly… not just tell your boss to raise faster
Believe me, I'm trying. He thinks we are ahead of pace and firmly doesn't want to deploy money wuicker. I've sourced a ton of deals and we are executing them but as small cheques to frankly over diversify. He wants to do more deals and recycle and really make a meal out of this fund where as I just want to move on to the next one with higher economics.
And I'd be the main person raising money, not him. I just need the green light but he seems to have retraded on his desire to go hard this year. Makes me super uninterested as the current economics aren't market.
Ah, I understand the dilemma, that's helpful context. No advice, out of my league given circumstance. Good luck.
Have you discussed with him beyond the surface level of not deploying capital quick enough? Playing devils advocate but maybe there’s a deeper strategic reason and in which case you can insert yourself into that strategy.
Ya, don't get me wrong, our number one duty is to our LPs and we are sourcing and closing great deals BUT this fund ended up being a bit below target, largely due to covid making a few chunky cheques drop and then the fundraising period ended.
The economics on this fund aren't good and I am really motivated to build the aum, which I was brought in to do. Also, if I build the aum it's an easier convo to get paid more!
Seems like a pretty extreme reaction to a small setback... I can completely get behind leaving a place that isn't motivated or doesn't provide line of sight to better economics, but an extra couple quarters for fundraising doesn't really demonstrate lack of ambition to me - especially since the fund is only 40% deployed. My shop is fundraising now, and our hurdle to officially kick off the process was 75% deployment for the current fund.
I can definitely appreciate that you feel like you got screwed on a near-term fundraise, but you're getting deals done and the fund doesn't seem like it's in a place to go to market now... don't get impatient, keep executing and the long-term value should still make sense.
That's fair. I guess for me the "hook" was a virtually immediate fundraise and fees associated with raising capital and expanding the business.
A lot of mangers who have lacklustre raises due to covid end up coming back to market faster, but I appreciate why he is being prudent. Still, I don't want to do without a big salary bump and bonus at year end just because he decided to put off the raise - I've been ready and have been bringing in solid proprietary deals.
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