Ive spent the last few years in PE, currently a Sr. Associate. Honestly, I really despise the work but idk what to do next. I dont want to do corp dev or strategic finance because quite frankly both sound very boring / robotic and dont want to be another cog in a wheel. Ive been doing some interviewing for HF's but hot 1000% sure if that's the path I want to go down given that it definitely shifts your career trajectory. My main draw is the fast decision making and live feedback loop from the market. I hate the fact that I can spent weeks or months on something that then dies (which I already saw was going to die but my VP was for some reason convinced it was a golden egg).
I'm also remote which is horrible for my sanity (firm too cheap to get an office lmao)
TLDR: for those who left PE and didnt go into corp dev / strategy what did you end up doing?
Based on the most helpful WSO content, many professionals who leave private equity and avoid corporate development or strategy roles explore a variety of paths. Here are some common alternatives:
Hedge Funds/Asset Management: A popular choice for those drawn to fast decision-making and market feedback. Hedge funds offer a dynamic environment, though it does shift your career trajectory significantly.
Startups: Joining a fast-growing startup in roles like business operations, strategy, or even leadership positions. Some PE professionals leverage their experience to help scale startups or even launch their own ventures.
Entrepreneurship/Search Funds: Pursuing entrepreneurship through acquisition (search funds) has gained traction. This involves acquiring and operating small businesses, often targeting the wealth transfer from retiring baby boomers.
Venture Capital: Transitioning into VC roles, especially if you have a passion for early-stage investing and working with founders.
Industry Roles: Some move into operational roles within portfolio companies or other industries, such as product management, marketing, or even CEO/CFO positions in smaller firms.
Consulting: A few opt for consulting roles (e.g., MBB firms) post-MBA, though this is less common for those already in PE.
Business School: Many PE professionals pursue an MBA to reset their career trajectory and explore new opportunities across industries.
Social Sector/Non-Profit Work: A smaller number transition into roles in the social sector or non-profits, driven by personal interests or a desire for more meaningful work.
Ultimately, the path forward depends on your interests, skills, and long-term goals. If you’re seeking a faster-paced environment with immediate feedback loops, hedge funds or startups might align well with your preferences.
Sources: The PE career path, Any PE people considered leaving to pursue search fund/entrepreneurship paths?, Life after 2 years in Private Equity, Breakdown of Post-IB Exit Opportunities, Q&A: Former Strategy& associate
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still trying to figure out as well.
I left PE because, to your point about an idiot VP, in PE it is common to have seniors who got there through luck and not competence, and their incompetence can be really really frustrating. Your performance can't be directly attributed, so no matter how many times you save said incompetent idiot's ass - he takes the credit, and then he throws you under the bus anyway.
PE made me realise that I'd much rather be in an eat-what-you-kill environment.
I was interested in pivoting to HF for a while because it seemed easier to attribute performance more directly.
However, idk how old you are, but there's definitely a time limit to pivoting. Also, good funds are highly competitive, and outside of the good funds, performance attribution issues and free riding idiots do exist - quant friend of mine built his idiot boss the only model that actually consistently made money, simplified it so that the idiot could run it (he doesn't understand it at all), and then got fired by said idiot
Sales?
Not many eat what you kill environments but curious what your thinking is with this?
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speaking from personal experience eh?
Haven't left yet but looking to in the next year. Working on a couple SMB acquisitions while recruiting for HF. If I can get the businesses but don't get HF I'll probably quit and manage those. If I do get HF I'll ideally make enough + from what the businesses generate to hire someone to manage them.
What type of businesses are you looking at? How did you find them?
Professional services businesses that have done literally 0 modernization (don't use any software/have paper-based operations, semi-frequently turning down business because they simply don't have the resources to grow, etc.). I already knew the owners.
have you consistently been getting HF interviews? if so, do you mean MMs or SMs? For SMs, what kind of headhunters have you been going through?
Currently looking to pivot to HF as well from PE but struggling to come across SM opps.
I wouldn't say consistently. I've interviewed at 1 MM and 2 SMs in the last 4 months, all approached through intros or applying direct as I don't have a close relationships with any big recruiters. Nothing landed as of yet as all preferred to take folks with 1-2yrs of public markets exp and who were a few years junior (I'm almost 30). I'll say this much, be prepared for a cut in cash comp as that was made clear at all 3 funds it'll be lower barring a blowout successful year.
If you get the HF gig, who’s going to operate these bad boys and what’s the avg enterprise value of these deals?
They already have employees so the hope is to try and either promote one of them to be the general manager or I'll try to hire someone. They're both sub $3m EV. I have 0 interest in running either of them full time.
In a similar spot, in PE currently and not loving it. Want to do something bigger / more exciting / more fulfilling. Would you be interested in a program that would be pay you to start a business? Essentially Thiel Fellowship but for pre-MBA finance professionals. DM to discuss further if interested, just trying to validate an idea at this stage
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nothing?
I want to move to PC, we'll see how that goes.
PC isn’t all that exciting either. A bunch of my colleagues and people I know in the industry want to leave and do something else but are kinda stuck.
Any particular reasons why? I've seen it become a much more popular exit from IB the past few years
Is this the first PE firm you have worked at? I would maybe consider trying another PE firm if you don't like this one?
no, second. i worked at a mega fund prior
Thought I would share my $0.02 here as I've hopped around quite a bit within the buyside. Disregard my job title, I've been out of PE for several years now.
Just to give a bit of background – started out in PC, then went to work for a large PE firm where I did both private equity and private credit. Burned out due to the hours and some pretty bad health problems I developed because of the lifestyle, so took some time off around the pandemic and then went into VC. Really hated working in VC (a lot more sales focused than you would expect) and my fund also got hit very hard during the downturn, so eventually left and now am working at Big 3 CRA in structured finance (credit rating agency, for those unfamiliar with the acronym).
Since you're a Sr. Associate, you should still be junior enough to make a pivot to other roles. It gets tougher the more senior/specialized you are, there's definitely a soft time limit there.
The major things you have to consider are pay, culture, and WLB. PE pays very well, but in most cases you'll be working crazy hours to earn that money (and just being perfectly honest here, many places have very toxic cultures and are generally awful places to work unless you get very lucky with your employer).
Be aware that you're not going to find many other jobs that pay as much, and if you're specifically looking for better WLB that will often come with a pay cut (although if you look at it from an hourly basis depending on role, you might actually be making more, but psychologically it still hurts to take an overall pay cut).
In terms of options for people to consider, the majority of exits are corp dev/strategy as was already mentioned, and also other corporate finance functions (FP&A, IR, maybe Treasury), either at a large corporation or a startup. I'd advise against going into VC based on my own experience, job stability is poor at the junior level. You could also pivot to private credit, but in many ways it's more of the same and if you don't enjoy working PE I highly doubt you'll enjoy working in PC either. I would also advise against working for a startup if you care about pay vs. WLB comparison, because in most cases they are highly reliant on fundraising (meaning poor job stability) and you have to take a pay cut but will likely still end up working some extremely long hours. Best to avoid situations where you take lower pay without getting equivalent better hours as well.
For me personally, I know that going from buyside to CRA is unusual (and that most people are probably looking to do the other way around) but I had some pretty severe health issues that were limiting and was specifically looking for a job with great WLB and a good firm culture, which the CRAs are known for having. Originally I thought I was going to go into corporate finance, but got lucky with timing and landed this role (while I was hoping to pivot back into credit at the time, most of my interviews were for corp fin/FP&A roles. I had applied to this position on a whim and was completely caught off guard when they selected me to interview and then extended me the offer). Very chill and laid-back team, consistent 40 hrs/week, 50 max even with crazy deal flow. Admittedly the pay is significantly less than what I was making in PE but it's still decent enough to cover the bills and actually quite good on an hourly basis, and I was willing to give that up for the better WLB.
Let me know if you want to discuss further, happy to DM if you want more information, there's a lot haven't mentioned yet despite already writing a wall of text. Best of luck with your current situation and hope you figure out what you're looking for.
How would you say is the comp trajectory for CRAs at the mid level?
By mid level I'm assuming you're referring to VP-ish rank? I'm sure you already know this but you're definitely not going to be seeing IB/PE comp numbers there, base is haircut significantly relative to equivalent base salaries of rank and bonuses are also considerably smaller.
Just to give some clarity on how titles usually are for CRA: Junior Analyst (fresh uni grad just starting FT) -> Analyst (1-2 YoE) -> Senior Analyst -> Associate Director -> Director -> Senior Director -> Managing Director.
Made the YoE distinction for lurkers to avoid confusion since Analyst title here is not the same as Analyst in IB/PE, since it requires some prior experience. As far as equivalents, Director = VP and you can approximately scale in both directions from there, although the junior levels are a little weird (for example, I would peg Sr Analyst as somewhere between Associate/Sr Associate relative to an IB/PE role given how much responsibility they have).
Comp is a bit tricky because I only have approximate numbers, and there's a lot of variation on base salaries. I believe people who lateral in generally have higher salaries relative to internal promotes because they are able to negotiate to the top/above the salary band range offered, and the pay also seems to vary between the CRAs. And the higher you go the bigger the possible ranges get, and bonuses become larger as well (although never to IB/PE level). But as general benchmarks while trying to be conservative with the numbers (better to assume the lower end of the ranges I'm providing):
Jr Analyst: 80-90k, 100k all in
Analyst: 90-100k, 110k
Sr Analyst: 100-110k, 125k
Assoc Director: 110-130k, 150k
Director: 150-175k, 200-300k
Sr Director: 175-250k, 300-400k
Managing Director: 250-400k, 500k-1 mil
So lower relative to IB/PE (lower comp ceiling and you're not going to be seeing 7 figures) but also definitely not just numbers to sneeze at, especially considering the culture and WLB. Hence why I made the comment before about pay being better on an hourly basis - compared to my time in PE I would be making twice as much if I had stayed, but interestingly enough by working 100+ hours a week I was actually being undercompensated for my time on a relative hourly basis. (Still hurts to make less overall money though haha, but it's nice to actually have my life back and be able to take care of my health.)
One other comment - I will note that there are lots of "lifers" at rating agencies who have been there for 20+ years and senior folks rarely ever leave because the working environment is so good, which can make upward mobility to Director and above a bit tricky because positions don't often open up.
Why do you say PE and PC is similar?
Similar in the sense that the work is very deal driven and analysis often focuses on the same aspects, just that credit is more downside protection focused while equity is more about considering growth prospects (although also still has a huge focus on company performance during downturns and "recession resilience"). And the entire investment process is very similar as well, with deal sourcing, diligence, writing memos, going to investment committee, monitoring portfolio companies, etc.
In fact if you're at a shop that specifically focuses on sponsor backed lending, you're basically just becoming the debt provider for other PE firms doing transactions and you'll be looking at the exact same companies as the PE firms. WLB tends to be a bit better in PC (well, relatively speaking. Considering that in our industry people call 70 hrs/week good WLB) since everything is smooth sailing as long as you're getting your money back on time and portfolio management is simpler, but plenty of shops out there are still extremely sweaty and if your investments start becoming distressed or develop other problems then things can get hectic.
my firm is likely going to shut down in a year or two (struggling to raise a fund for 5 yrs now) so i dont want to spend more time on a sinking ship. plus VP = carry = golden handcuffs
tech startup sounds super disorganized. i actually did a short stint at one tech startup and quit after a very short period bc it was just so messy
Back to ib? Pay is good, relationship based at senior level and w/l not horrible as you’d come in as a VP
Hi, I went from MF PE --> PE operations --> To hedge fund (SM). I had the same doubts as you.
Having done strategy consulting and PE operations (which deals with the board and portfolio management), I am also not sure if I am super enthusiastic about corporate mainly given power dynamics and politics. I'm picking HF because the work is interesting, the pay is much faster (to realize), and only a small team means tons of autonomy. What I hate about PE is that you have to kiss up to your bosses. In my view, you either get my great work (and you supply emotional value) or you get shitty work (but I supply emotional value). There is not a world that you got both from me.
Just something to think about - The key is to solve the maximum point of what you are good at X and what you find interesting and monetize that to the moon.
How were you able to pivot from PE ops to a HF? Currently in MF PE and evaluating exit options & was under the impression going to anything other than a HF after PE would close that door
Typically yes, but if you have track records of PA going 3x would make sense much easier….other route is business school.
I went into secondaries 5+ years ago. I’ve enjoyed it. WLB isn’t quite like corporate but huge improvement over many other investment/banking jobs. Once you become sr and carry rolls in you’re clearing 7 figures. Downside is it’s niche and not many spots.
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