For those who exited PE, any regrets?
I’ve received great feedback, been told I have a bright future in this sector, etc. but I’m getting burnt out and just don’t feel like the money is worth the sacrifice anymore.
I’m beginning to pick my head up on exploring roles for Family Office / Endowment / Strategic Finance / Corp Dev. But given the feedback received, I’m not sure if I should try to stick it out longer and see if it gets better…
Bailed on PE after 2 years. Walking away from it / banking was the single greatest thing I have ever done professionally.
What do you do now?
What did you do instead?
Corporate Strategy.
How come?
Do you think there’s benefit to staying for the second year? Or should I start recruiting and bail after first year bonus?
why do you want to leave?
Are you making more now in corporate strategy? Or, are you just happier all-round and enjoy your work more because it's not so demanding?
Of course not, that's not what it was about. Once i hit about 27 years old and all my personal relationships and health were imploding I started to fail to see the point in grinding myself to a nub for money that I would never get to enjoy.
I make roughly $390K in Corporate Strategy and I work 40 hours a week, generously speaking. I have complete flexibility and autonomy over my schedule and I'm treated like a human being. If I had stayed in PE I certainly would be making multiples of this, but who cares.
What made it great for you?
Same boat, in the seat I coveted for years and am considering going to corp
Might even leave finance tbh
Whats your reasoning? Super helpful for me, if you do not mind.
The people are innovatively toxic and the more people I meet in the field, the more people tell me how toxic they are. The hours are insane and the money is only good if the pot bellied gods decide you’re worthy. Or their offspring.
I keep a resignation email teed up in my draft folder so that way it’s really easy for me to do something impulsive if I get fired up. Sometimes, I hope IT spies read it and report it.
I can’t tell if I hate the people, the work, finance in general or all of the above. Maybe I hate myself. All I know is I feel more pure hatred festering in my heart more in my time at this firm than at any other point in my life.
The trauma bonding has been pretty good, but this doesn’t feel worth it with how many other ways there are to get the lifestyle i want these days.
I’ve got some options, but quitting now feels like committing career seppuku and is antithetical to my being
I feel like I could have written this a few years ago when I left PE. I think the anger and hatred for me came from feeling like I was being taken advantage of by people who did not give a single shit about me and the death of any notion of meritocracy that I once thought existed. I had so much resentment and felt so unappreciated for all the sacrifices I was making just to be viewed as disposable and easily replaceable. The hierarchy and power structure where some fat balding loser partner could control my life whenever he wanted to and still screw me out of a bonus and somehow had control over my self worth made me feel like I was an indentured servant. I hated myself for being dependent on these miserable “successful” people for validation of my potential and worth as a person. I judged myself on how well I could play a game that I hated.
Getting out and working a job where I could set actual boundaries and working with people who also set boundaries with work, was very good for me. It took a while for me to get used to setting boundaries and candidly learning to respect other people’s boundaries too (they’re not being slow to respond they just have a lot of other shit they need to do and after 5/6 their family gets all their time and emotional energy). The hardest part was being okay with defining success in a holistic way for myself. Being physically, emotionally, mentally healthy and having good relationships (which only is only possible when you’re not angry all the time) is more important than having the perfect LinkedIn profile. Focusing on getting what I wanted out of my life rather than doing what was “right”.
In the end OP, you need to just have faith in yourself as a person and remember that you maximized every opportunity life gave you. If you leave and if you take a job with boundaries that gives you more time and space, you will maximize what you do with that time and space too. PE isnt the only outlet for ambition and isn’t the only game you can play.
Can’t tell if he hate the people, the work or himself.
That is my life in a nutshell lol.
I know I’m depressed or something, since I have the perfect life on paper. I think finance just makes you angry at life if you’re not into demeaning juniors and being a toxic jerk.
I could not agree with this more - the toxicity is incredible and most of the people were not my type of people. I actually left at end of IB - after seeing how bad it was I decided to get out then and not pursue PE. Now I'm so much happier - same money as IB, almost no w/e work, working with great people, still shocked when I get a "great job & thank you".
I feel seen
I feel seen
Bro... are you me?
I get it. You made a commitment and you want to keep true to your commitment to this PE career. But, you have to ask yourself why did you make that commitment and if your goals remain the same now.
Next, after you have reevaluated (or reconfirmed) your goals, ask yourself if they still are in alignment with sticking it through this difficult job position and phase of your career.
Think big picture. Think imaginatively. What would you really enjoy doing for a job? No doubt it will pay a lot less, but would it be worth it in happiness, calmness, and health gained?
Just left finance after making it to a MF. Going entrepreneurial route. Feel absolutely freed but scared shitless.
That is bad ass, considering something similar and it is definitely scary
Honestly man I feel like that’s the right move. You have the rest of your life to course correct if this doesn’t work out, but only a few years of youth without any responsibilities to anyone else to try and do something with more risk. You can work a W2 job in your 30s/40s/50s with a family but you might not be able to be an entrepreneur then. So it’s really now or never if you want to explore that route.
Was so beyond miserable and burnt tf out in PE. Thought if I walked away my future of high earnings and pedigree were 100% over.
Quit with absolutely nothing lined up (horrible idea I know) and now working in Strategy at a Decacorn, all in comp was $265k ~45 hours a week, no weekend work.
What was your process for landing this role?
Got lucky on LinkedIN. 2 model tests, 3 rounds of behaviorals, offer.
Did you have trouble landing this with a finance background rather than a strategy one?
Not at all, their posting looked for someone in consulting or IB. I was in IB prior to PE.
OP if you don't mind I would love to hear more color to the burnout. Is it just long hours? A-hole seniors? Would love to hear more. Thanks.
No I work with very nice people, never yelled at, collaborative atmosphere.
But we operate lean and good work gets rewarded with more work. Just don’t see myself being happy until I’m at the partner level and don’t think I want to grind for 12+ years to get there.
Zero regrets. No fulfillment at all and brutally depressed from PE. Way happier at my Corp Dev role clearing $230k for 50hrs a week. No weekend work.
What level were you in IB and what level is your position now?
Was in a similar boat and left for corporate however my comp (150k all in) is no where near what everyone else is citing here. I don’t know how people are landing all these high growth tech spots (my coverage was industrials so maybe that’s why). If you can find better comp then mine it’s worth it, but I frankly regret it a bit taking a 50% comp haircut.
Delete
Is the job security better at least in corporate or if you’re not performing it’s easy to get laid off ?
Definitely regret it. The 50% comp hit (that only gets larger the more senior you go) hasn't been worth it as my hours in the startup world are not significantly better than PE and I don't find the work any more interesting. It has been tough to get back into PE given the state of VP hiring
At least I’m not the only one that took a 50% hit on the comp…reading this thread you would think everyone is locking these 230k+ corp gigs…outside of tech cos in Sf I don’t see how this possible with just 3-5 years experience
Yea I mean even if you land a $225k+ corp gig (not easy - many roles are more like $175-200), that's still a 50%+ hit to VP1 cash comp at most MM/UMM+ shops ($450-550k)
There's a lot of confirmation bias on WSO, it's very difficult to exit to a role with good hours that pays well/similar to what you make in PE, the reality from those I know who have exited PE is that many left to corp fin gigs (SFA or Manager level roles, based on experience) that pay in the $125-150k range (and this is in NYC, market is very competitive right now). I personally left to go work at a CRA for the WLB and took not only a massive comp hit but also a title hit as well given I went into a rather niche field.
Do I regret it? No, because PE absolutely wrecked my health and I actually have the time now to pursue other things outside of work and have established a robust social network, something that I had completely lost when pulling the 100+ hour weeks prior. Everyone here probably knows the experience of having no time to do anything aside from work, eat, and sleep, it's so nice to finally have time to take care of myself again.
But damn if I don't miss the pay, going from making $200-300k to $125k all in is a pretty tough pill to swallow, even if I am only doing 30-40 hours (50 max) per week. Small comfort that at least I'll probably get promoted quickly given my past exp and get the bump to 150k, but still hurts when compared to PE numbers. I suppose if I really wanted to a few years down the road I could probably recruit for buyside again given my past experience (worked in both PC and PE), but tbh the WLB is tough to give up now that I have it.
Bottom line is pay is generally heavily correlated to the hours you work, and comparison is the thief of joy - pick based on what you think your needs will be, but at the same time always make sure that the pay you get is worth the WLB you get in return. And health should always come first, you only get one body to work with. As long as you maintain that you'll always have the ability to pursue opportunities in the future.
Early stage Startups are a generally pretty shit trade - same hours and stress but lower comp. I would not go anywhere earlier than series c/d at the very earliest.
Is the job security and competitiveness in these corp dev role startups bad ? How easy is it to coast in these roles ? 200k usd seems good if good wLb doing strat fin but not entirely sure what that entails at companies like rippling roblox open ai etc.
Whats your role at the startup? Could that be why you dont find the work interesting?
Wow this is so depressing stuff to hear yall going through this 😔. Honestly, I was at Corp Dev trying to go to PE and was just like lost about where to go next. I honestly think I should have stayed in banking if thats the case. Might just go back. FOMO really burned us.
Anyone leave to do private credit?
Yes, I did. No regrets. Greater upward mobility and WLB, and transitioned upward enough in title that it was an increase in cash comp.
Is it really much better?. Larger volume of deals smaller cheque sizes and shorter time frames compared to PE. Multiple live deals at a time and constant tracking of holdings
How modeling heavy or technically proficient do you have to be for these PC roles? I think the role is interesting but I kinda hate modeling now after 4 years of it and want to do something less technical frankly
I regret not doing thorough diligence on the role I exited to, and I regret not accruing more deal experience / YOE before I left. The longer you stay, the easier it is to return if you realize you want to go back.
To anyone considering a move out of finance for a corporate role, I'd strongly encourage them to call as many former employees as they can. Current team members are useless, as they will give you a biased / rose-tinted view of the situation. Only by speaking to former team members will you get objective sense of the day-to-day. I got burned badly by not doing this, and have been stuck in a role with very few transferable skills for the past 2 years. I will tirelessly advocate for this approach to job hunting as long as I remain active on this forum.
Anyways, paraphrasing a great post I read on this topic a while back: once you leave PE and high finance in general, you're no longer viewed as "special" by a sizable subset of the workforce. As much as I'd like to think that I don't have a fragile ego, or that I'm not overly tied to career prestige as a benchmark for self-worth, I've realized that I really do value the sense of achievement and external validation that comes with working in an industry like PE. Having lived in Manhattan for the past 5 years, I've come to terms with the fact that a meaningful chunk of my perceived value in this city is tied to my job title, which is something I feel that I've lost a good deal of since moving to my current role. In an ideal world, your sense of value and self-worth should be decoupled from your career choices, but unfortunately that doesn't seem to be straightforward to achieve, nor is it commonplace among individuals in my circle that were drawn to these types of positions in the first place.
So overall, it's a shitty situation. I felt miserable working in PE, but I was also drawn to the sense of achievement and external validation that working in that field gave me. Now, I'm no longer miserable every day from work-related stressors, but my perception of my own value has cratered. After grinding for years to get into a career track that almost no one from my hometown could access, I've felt pretty untethered since walking away. I'm not sure what comes next, and I know my career is far from over. I just hope at some point I can find peace and fulfillment beyond professional accomplishments and a title on LinkedIn.
how long did you spend in PE?
I am exactly in the same boat with similar feelings. Took a 50% paycut and now don't know what to do. Grinded really hard out of shitty situation to get into IB and PE and now feel like I wasted it to be in the same spot I could have been in with much less effort. I think finance outside of the IB/PE/ER wallstreet track is not worth it perhaps
That’s so wild, I’m in the opposite camp trying to leave PE. Maybe I should keep drinking the Kool Aid…
Honestly going to therapy helps with this feeling a lot.
The other thing that helps is finding other things outside of work to be proud of / talk about socially. Things like Hobbies that you’re really committed to or being on a sports team or working out at a high level. You have time and space now to have a well rounded life and you have to proactively fill it with things that you care about and are proud of. Eventually you realize that everyone else around you would also much rather talk about these things than just work too.
similar boat - mind if i PM you?
This exactly happened to me. I realize now I want to get back but I didn’t accrue enough years or skills or knowledge to be able to get back and now it feels like I messed up my career and I’m panicking. I want so badly to get back but in this market it seems impossible.
What role did you exit to and why cant you find a better one outside of finance?
You probably feel this because your only friends are people who work white collar corporate jobs. This is just sad lol
What role are you doing - what has been the reality? Cant you move to a better role outside of finance?
I exited PE, partially missed it, so went back in a secondaries role. Has worked for me but I wouldn’t have had the fortitude to go back to a directs grind house
What're your reflections on moving to secondaries? Would you recommend it?
When I left PE I was super burned out, fat, miserable, and had nearly destroyed a lot of close relationships because I was so deep in my own shit and had no emotional capacity for anyone else. I did really enjoy the job though and was doing very well at it.
It took a while to get over the ego hit of leaving and not feeling like I gave up on myself by opting to have a more comfortable and sustainable lifestyle and prioritizing other things other than traditional achievement.
Eventually though I learned that I had to fill my life with things that I could be proud of across all components of my life. I took the extra time I had and completely committed to working out, to my relationship, to traveling (maximized my PTO and did tons of remote work trips), and to working on my mental health. The end state now years later is that I’m in extremely good mental, physical, and emotional health, I have a girlfriend I’m going to marry, my relationship with my family is dramatically better, I got to see the world and have lots of amazing adventures in the second half of my 20s, and I generally developed into a more confident person. All of this required me to be proactive and to be ambitious and driven and committed to other aspects of my life as much as I was to my work.
Professionally, I sort of felt lost for a while but eventually I realized that I was learning something working at a corporate (how to actually make things happen at a company) and I found myself on a career path that is honestly more shiney to people (c-suite) but that still gives me the space to live life on my own terms. It’s a different career than I would have ever expected, but embracing a new path that’s a better fit for getting me what I want out of my life (balance) has made me more excited for the future.
Basically - when you step off this path don’t look back but be proactive in creating the life that you want to live in a holistic sense and embrace new opportunities when they appear in front of you. The worst thing that you can do (and that I did for a while) is to constantly look backwards and wonder about what if I had just found that perfect firm and perfect role in PE that everyone is searching for but no one can find.
I absolutely aspire to achieve the same sort of 'mental rebound' you experienced (less about physical or mental hardship and more so the sense of wanting to actually live life rather than spend 13+ hours a day in an office). When you were still in PE, how did you go about recruiting? I'm having a hard time trying to A) find places in the area I want to live in that offer things in Corp Strat and B) vetting the actual potential job (Last thing I want is to leave a heavy work-demanding seat for another but with less pay).
Treat it like IB / PE recruiting. You have to network aggressively with ex bankers / PE guys working in corporate. They will know your skillset and pay you appropriately. Build a list of companies in a sector you’re interested in and try and network aggressively with people at those places. Don’t just take a random ass job at a PE backed HVAC rollup unless you’re interested in it. You have a good resume, aim to work in a sector you’re interested in building a career in.
With regards to WLB, later stage / more mature businesses tend to be better quality of life than early stage startups (anything before series c/d). Certain gigs like fp&a and corp strategy aren’t deal based so they tend to be easier hours too. Companies in the Midwest tend to be more chill than SF / NYC based companies. Look for how well staffed the teams are and how much hierarchy there is. You can also ask questions pretty directly about work life balance and see what they say. In general, in corporate, everyone should be willing to talk about that because most people have families and kids. Finally, assess who you are working with and how comfortable you would feel with setting a boundary with them. Your WLB is your responsibility and it’s your job to set boundaries and take PTO. No one will ever stop you from working more than you need to.
Love this insight thank you!
Hey I stepped off the path not for because I was burnt out. But I feel like I didn’t understand things going on and given the number of deals I was on it was impossible to learn and catch up to my peers. I’m really caught up in the past wondering if I burnt out or if I gave up too early because I didn’t put in the effort to learn and understand and maybe if I understood how to do things efficiently and quickly I’d come to love PE. What should I do?
Holy shit you sound just like me. I thought I was the only who had an experience like that. Totally agree. I can handle the hours, but I genuinely felt so dumb in the role like I was just following the steps I was told to do and had no actual understanding of the work at hand or when it came to technical modeling exercises they took me a long time or required some handholding at the time.
I wish I had an answer or advice for you, but I'm in the same boat and have had similar feelings of depression lately. I just wish the pay gap and progression wasn't so damn big. It's like there are very few options in finance and I don't think I should have pursued this path. This is also going to sound very shallow but you have people in F500 corp dev age 40+ making the same amount as some 25 year old in PE! Again, it's a horrible way to think about the world but damnit I can't get it out of my head now.
The snuck premise in what you’re saying is that everyone has the capability of learning and developing in an environment like a PE firm. That is bluntly false - you need to find a work environment that is most conducive to your own style of working and learning. Play to your natural strengths and advantages don’t force fit yourself into an environment you won’t succeed in.
I personally learned almost nothing in banking because I did not jive with the disorganized and unstructured way that feedback was communicated to me without explanations (random ass comments about making changes without any explanation for why we needed to make those changes). It took working with one particular VP who had a very non banker style of communicating feedback and was actually invested in me as a person for me to actually start to understand the job.
There is some variance from firm to firm in terms of how they communicate feedback, but the consistent theme is that no one really gives a shit about upskilling their labor because you’re disposable and will be thrown out in 2 years anyways. Some people are able to learn and develop in that environment and some people are held back by it.
In corporate there is generally more willingness to invest in labor because the assumption is that you’ll be around for an indefinite period of time vs a 2 year churn and burn. You’re playing long term games with long term people vs short term games with short term people in IB / PE. A big skill that I only developed after I left PE was public speaking / executive presence. I was always so unconfident and nervous in PE because I was waiting to get yelled at for making a mistake and I wasn’t empowered to take risks. After I left, I was fortunate to have a number of bosses who wanted me to have a voice and empowered me to trust myself in coming up with my own deliverables and presenting them the way I thought was best. Now I get feedback that it’s one of my strengths.
For me, I tend to work best when I have more autonomy and flexibility and creativity and I can take something from point a to point b my own way and really think through how and why something works vs regurgitating someone else’s logic. This is not a conducive style of operating with IB (where you literally get drawings of slides to be made) but it worked well for me in a lean corp strategy team.
Similarly, my personality was not a good fit for finance and people really did not like me. But somehow in my new company of middle aged midwesterners everyone loves me and I’ve made a lot of great mentors and friends. The only difference was being in a culture and environment that was more aligned to who I am as a person.
TLDR: Find a work environment where you are best set up to succeed based on how you like to learn and work. Play to your strengths and natural advantages vs trying to force fit into a work environment that you’re not advantaged in. Skill development is not linear and not guaranteed, as you experienced, so be really mindful and reflective about where you will best learn and grow before making a move in the future.
Your unique personality and way of thinking is your only differentiator in this world, find the environment where you can best leverage it.
On what to do: going back to PE is your choice. However, as of today, you’ve made the choices you’ve made. You can either choose to get the most leverage out of your current situation by spending the time you have learning as much as you can from your current job and being ambitious in other aspects of your life (fitness at a minimum) or just throwing this time away. You’re in your 20s and will never be this young and free again. Don’t waste good time.
Professionally, try and make a point to learn something. Figure out how marketing, ops, product, and other functions work. Read a lot about your industry and study your business model. Treat it like a PE diligence session and be very curious about how the business works. Make a point to learn new skills - at the minimum how to communicate or collaborate better. Schedule 1:1s with leaders and ask them questions about their careers and their job functions. Learn all the data and metrics in depth and understand how operators use that data. You have to take responsibility for your own learning and making a point to talk to people and ask questions to learn and develop.
Your happiness and your sense of fulfillment is also your responsibility alone. Your life won’t get better just because you’re not in PE, you have to choose every day to commit to doing things that are positive for yourself on a holistic level. I had the same feeling you described at one point and the only thing that helped me was just committing to go through the motion. Plan a solo trip, go to the gym every day, make a point to schedule catch ups with friends. Fill your life with enough positive things and suddenly you might start to feel positive yourself too.
Check out my post here
https://www.wallstreetoasis.com/forum/private-equity/anyone-else-realiz…
Did a two year stint at a MM PE firm out of undergrad. Got sweated, most weekday nights working past 12am, usually some weekend work, etc. Literally just hated everyday of my life, no time for relationship, drinking too much, etc. Took a corp strat. role, all in comp of 270k for 40-45 hours a week.
My life has gotten so much better its actually wild. I was never gunset on IB/PE until college and decided to do it because thats what everyone did where I went. Would challenge people who currently work in IB/PE and are not happy to take a step back and re-evaluate why you’re doing it. If its genuinely because you’re interested in the job, see a path to a more stable WLB in the future at you’re firm / want to live lives similar to you’re MDs - then stay and tough it out. However, many people stay just because they just want to tell people that they work in private equity. Once you stop caring about what other people think about you’re job (most people really don’t give a shit anyway), life gets a lot better
Facts!! 💯
No offense but the reason you are satisfied is because you're getting 270k all-in at a corp with (I'm assuming) less than 5 YOE...of course it worked out great for you! I don't where these roles are outside of the early tech cos in SF. I've looked for corps in my industry (consumer) and it's more like 140-150K is what I'm seeing for 3-5 YOE
You need to network with ex PE people in corporate. They will know your skillset and pay you appropriately. $175-225K was market a few years ago, which means it’s actually a bit higher now.
If you apply to generic corp dev and fp&a gigs on LinkedIn, you will get underpaid and not find a quality exit.
I am seeing similar numbers for corporate roles in general and if anything a bit lower for consumer specifically. No idea where these 250k 3 yoe corp roles are coming from.
Curious if this is tech and if you had to move to SF for the role?
Keen to get a European / Small-cap perspective on this. It seems from my small sample size of friends in this world that those really enjoying life are at 'no-name' small-caps with high autonomy, ok hours and little deployment. Vs those in bigger brand shops, really struggling with life and constantly contemplating an exit.
Welcoming other views!
Of course europeans who don't need to do any actual work are enjoying life, lol
How are you guys finding these $230-270k roles after 2 years of PE?? Every posting I come across is like $170k AT BEST
It’s hard to find, but Series D tech companies will start managers out at $170K base with some form of bonus or equity. The big delta in pay comes from (1) much less standardization unlike finance, and (2) many companies don’t value the IB/PE skillset nearly enough.
Just have to be selective and try to slot in as a manager and not a Junior, which is hard to do when you’re 26 years old. If you’re able to get into a very lean team at an otherwise well-sized / funded company that makes it easier to negotiate.
No real answer here, because I understand the struggle. Takes time and patience. Be upfront with recruiters that you’re seeking a higher comp, many times for the right candidate they may budge 10-15%.
For what it’s worth, I’m at $250K all in after IB, PE, and MBA, and while it’s not PE money, I’d say that’s still decent relative to the market, to your point. The things that helped me were: (1) industry that I was already investing in, (2) nobody else was doing my role or had anywhere near my experience, and (3) sponsor-backed company that knew the value I could bring. I’m the only true corp fin/corp dev guy in a well-funded startup, so I had a lot of leverage.
Are these all SF roles?
Exactly what I have been saying. These roles don't even exist outside of SF. What if your coverage was not even adjacent to tech in banking/PE?? I can tell you I've looked at almost every single F500 posting and they are like ~150k
No. I'm making more and working less. And doing more useful/impactful/interesting work (less spinning wheels on dumb shit).
I feel like in PE, you're bringing a jet to commute to work. Why build all these insanely detailed models if you're just going to have the MD say, "Oh hey, let's increase new growth and bump down churn a bit," just to hit the right IRR/MoIC so they can try and shove a shitco through IC because they haven't done any deals for the last two years.
Very few PE firms are actually intellectual investors (at least in MF/large-cap, can't really comment on MM).
Where did you exit that gives you higher comp and better WLB?
I went to venture growth.
One of the best pieces of advice I received in my career was to look for senior colleagues I wanted to be like when I “grew up” in my career. After a stint in IB and then another one in PE I realized I didn’t want to be like any of my senior colleagues for many of the reasons stated on this post. So I left, and it has been the best career decision for me.
Exited to a Chief of Staff role at a $1B+ company (strategy focused and reported to the CEO) and now at a startup ($500M valuation) leading corporate strategy 3 years out of PE (ignore my title). Advice to you: if you don’t want to be like any of the senior folks, then find a place that you have people you can look up to, work with, and learn from.
OpenAI pays $265K base + $500k RSUs for people ~5 years work experience in finance. At least they did about a year and a half ago.
Can anyone confirm?
yeah but they also work really hard there with weekend work
Your base figure is correct (can come in lower though), the RSUs vest over 4 years though. So its 385K in total comp if the value of the company remains flat.
Relevant, as I'm having a hard time with this now. Short answer - yes but I'm still debating if returning to PE is the easy way out.
I left MM PE as an associate 2 years ago to be Chief of Staff at a Series C and now run their finance department. I work 40-70hrs but have worked plenty of 80+ weeks; my pay is in the low 200's all-in and isn't projected to get materially better like in PE. The work is far worse - more menial and mind-numbingly boring. PE data-cutting isn't exactly stimulating, but AR/AP, payroll, and reporting are far worse. YMMV, but my company has a "doer not manager" mentality so I'm frequently getting my hands dirty paying invoices and addressing salespeople complaints on their commission payouts. The transition from finance as a revenue generator to finance as a cost center also definitely shows - the perks are slim, attitudes are different, and I often feel like the buzzkill telling people they can't do something interesting because budget. Being remote is sometimes nice, but for me, remoteness dilutes work to a series of faceless requests vs. the camaraderie of people working on something together.
I originally left to learn to start my own company, but am realizing I might not be an entrepreneur personality. I prioritize financial gain and prestige over ideas and vision. I haven't thought of any ideas where I'd risk 10 years of income, and generally realized I'm much more risk-averse than I thought. I'm not a coder, nor a domain expert, which definitely matters if you're doing something in tech.
I'm debating returning to PE, but I clearly remember why I left, plus recruiters already said I wouldn't get credit for my past 2 years. For now, I'm coasting at my job and hoping that I can either convince myself to fight for the right idea as an entrepreneur or get onboard that the grass isn't greener and despite the toxicity and hours, PE is still the best option
FWIW I think startups, by nature, vary a ton. You have your 7-days a week startups ran by 22 year olds and then you have the older, slower startups where kids are the norm. Wouldnt say one is better than the other but now that Im older, the latter is a better fit.
A few random laundry list thoughts to to those pursuing startups but YMMV:
- Ive worked consistently 40-50 hours across many startups. No weekend work - The impact of my work varies candidly from very high to menial. You do whatever it takes to win and sometimes the job isnt great but sometimes it is
- My cash comp has basically stayed at $200-250K for 3+ years now. Equity has gotten much meatier but you rarely see cash comp above $300K. Currently at $250K + equity. 8 YOE. You should be in it for the equity (is what they tell you lol) but enough cash to live comfortably
- Some startups highly value the PE skillset, many dont. Typically Id look at the founder to see who is first class citizen. Designers are first class at Airbnb. Engineers at Facebook. Engineers are valued everywhere but ex-PE need to find a startup with hard business problems (DoorDash/Uber back in the day).
-Unlike PE or other corporate jobs, you will always do IC work. Typically what Ive seen is I will build a function solo and do it myself. Then, Id hire someone else to own it and I would move on to the next problem. Over time, you end up owning a lot more functions and youll lead/coach many people but youll probably always do IC work
-As I get older, I do sometimes think about how much more cash I wouldve made in PE. But at the same time, now with kids, the WLB is very nice
Startups, for me, was the sweet spot of lots of upside without burning the midnight oil. But you do pay in terms of risk. Id be lying to say I love it. I dont think Im the type to like any job. Work is work and this is the path Ive found least painful. Hoping my current startup hits and I can retire. Apologies for any nonsensical sentences. Writing on my phone
Would love to connect offline and chat further. Currently finishing my banking programs a BB and looking to exit to strategy roles at a startup.
Thanks for sharing dude… curious how did you find the caliber of people ? At risk of sounding super douchey, I spent some time between MBB and PE at a startup, and found some of these middle managers not from consulting / finance backgrounds have no idea what they’re talking about, eg it’s kind of painful to deal with someone who’s trying to poke holes in your model but has no idea how excel works or what the simple formulas are actually doing and won’t listen to a person “below” them explain
How did your equity grants progress over time and at different places you've worked at? It's one of the more opaque areas and highly variable across startups and roles
It’s completely valid to feel that way, especially when the personal cost starts to outweigh the rewards. Positive feedback can be encouraging, but it doesn’t always ease the burnout. Taking time to reassess your priorities, set clearer boundaries, or even explore new directions might help you rediscover your motivation—or decide confidently if it’s time for a change.
Nope. After 4 years at my firm, I had had had the life sucked out of me. I took a 100% pay cut to do something legit.
A 100% paycut would mean that you are now making $0 per year. Are you founding a company? Or did you mean you took a 50% paycut (i.e., half)?
No I was just being dramatic because it might as well have been 100%. In reality it was around 80%. To be clear, it was comepletely by choice and not out of necessity. Following a dream, not money.
And no, I didn't start a company.
Left PE and now in strategy making $290k at age 26 working 35 hours a week. Just need to be patient on your "exit" and you will come across some really good ones.
Insane. That’s better than what some associates pull in. How did you go about getting a role like that??
I know, when I told my bestfriend who is still in PE he said "Dude I work 75 hours a week and make $260k".....
Back to my point on being patient, I got it through "easy apply" on LinkedIN! Just saw the role posted and applied. 2 rounds of easy model tests, then 4 rounds of behavioral, and then offer.
What city is this?
NYC!
Big tech?
No, non-tech. Companys private worth $15bn+ though, which probably explains the high comp.
What is the actual title of your role?
No regrets. Was in IB then did a year in MF PE and realized pretty early on that large cap investing wasn't for me (TBH I enjoyed banking a lot more). Found an opportunity through LinkedIn (echoing the above) that specifically was targeting ex-finance folks to work on corp strategy / strat fi. This is at a pretty stable (read: cash flow positive) Series C enterprise SaaS. All in-comp around $260K (>$200K cash base). Work can be intense during the week but (i) have tons of control around which 55 hours of the week I work and (ii) never really go on my laptop during the weekends. Have full remote flexibilty too.
These opportunities are somewhat tough to come by but are out there, especially these days (I think a lot of growth stage startups like ex-PE operators). I'm also one of the youngest people at the company which I personally like - since everyone has kids, etc. culture tends to prioritize 'normal' working hours + stability.
If I came across a corporate role offering $220k all in thats definitely on the higher end right? Would you agree most are $135-$150k?
nope, i did the path of a fgli from a small town --> non-ivy t20 target --> mm ibd --> eb ibd lateral --> mf pe --> sm hf, and loved every step of the way!
each step was a great learning experience, and while i look back fondly on my eb ibd and mf pe days, i knew that i would get stuck and probably retire in the clogged middle management of my mf pe firm, so when i came across a sm hf opportunity that did crossover investing, i took it and never looked back!
even so, i would still recommend ibd and pe as they have been the greatest learning experiences for me, and i would not be where i am today without it.
It’s so ingrained in IB analysts day 1 that PE is the ultimate destination. I’ve watched several friends/coworkers make it and now that they are there, they still lack a sense of fulfillment and aren’t in a role they would be excited doing long term.
Find something that really fires you up, take the initial pay cut, and work your ass off. You’ll come out ahead in the end. You can only fake it for so long in PE if you aren’t confident it’s for you in the long run
It’s so ingrained in IB analysts day 1 that PE is the ultimate destination. I’ve watched several friends/coworkers make it and now that they are there, they still lack a sense of fulfillment and aren’t in a role they would be excited doing long term.
Find something that really fires you up, take the initial pay cut, and work your ass off. You’ll come out ahead in the end. You can only fake it for so long in PE if you aren’t confident it’s for you in the long run
Genuine question: how in the world do you find something "that really fires you up" that isn't related to the arts/entertainment/sports/music? Or do you literally mean drop everything and pursue those lottery shot avenues?
You're correct, unless it's arts/entertainment/sports/music... it doesnt exist for most people
no regrets at all.
i spent my ibd years, working with an analyst class that i loved working with, at a shop that had great culture and upward mobility.
i believed that PE was the promised land, and i left a job i loved just because of the kool aid i drank of a PE firm with a great brand name, only to realize how badly of a mistake i made.
my IBD firm had a good amount of partner retirements and middle management departures when i joined as AN1, so the firm made it clear that they wanted the analyst class to become career bankers and they promoted upward mobility, combined with great culture firmwide. furthermore, most of my analyst class was fresh college grads and laterals from lower tier banks, so under the good culture of the firm, in abundance with the diverse backgrounds of us all, everyone was respectful to each other and v collaborative.
by contrast, my pe firm made it clear that they would promote only a small fraction of the associate class, and my associate class was a bunch of hardos who hated each other. also, my pe firm had a ridiculously clogged middle management, so despite the strong brand name, none of the associate class wanted to stay and we all recruited for HFs and other PE shops, but kept silent about it when in the bullpen. going to work everyday was soul crushing, as i was dealing with a bunch of sociopaths who put up fake plastic smiles to hide the ways that they would backstab each other any chance they could get.
when i got my HF gig, i bolted out of my PE firm first thing and never looked back!
You're definitely not alone in feeling this way. A lot of people in PE hit that burnout wall, even with positive feedback and promising trajectories. The lifestyle can be relentless, and if it’s draining your energy or happiness, it’s worth seriously exploring what else is out there. Many who've moved to family offices or strategic finance roles find the better work-life balance and long-term thinking refreshing. It really comes down to your personal values and what you want life to look like in the next few years. No shame in stepping off the fast track if it means more sustainability and fulfillment.
No one ever really exits PE, it stays in your soul forever
Amen brother, I still have wet dreams about laying off factory workers and inflating IRR on my v556 LBO model
It's important that the lenders buy into the pro forma cost savings so you can get that extra quarter turn of leverage
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