Fund going shit but happy with life what to do?
Associate in an MF
My large-cap fund is really going downhill now, we’re not looking at the most interesting companies, and I know that career-wise it could be much better. But all the other aspects of my life are perfect: love the city I live in, super fit, and have good friends.
Basically, I’m struggling between going to a more prestigious MF where I know I’ll get very good experience and career-wise it'll be amazing, but all the other aspects of my life will be much worse.
I guess it’s a bit like every PE shop at the moment since returns haven’t been there for the past 5 years, so hopefully once the industry gets better my fund will too (though my view on my IC is pretty negative, I don’t think they're very competent).
What would you do? Would you sacrifice everything else for the career? In scared that in 5y I won’t be able to recruit because of my low quality experience
Based on the most helpful WSO content, your situation is a classic trade-off between career progression and personal happiness. Here’s how you might approach it:
Evaluate Long-Term Goals:
Think about where you want to be in 5-10 years. If your ultimate goal is to stay in private equity or transition to a top-tier role, the quality of your current experience matters. A fund with a poor track record and uninspiring deals could limit your future opportunities, especially if your IC lacks competence.
Consider the Industry Cycle:
As you mentioned, PE returns have been underwhelming recently, and this is a broader industry trend. However, if you believe your fund’s issues are structural (e.g., poor leadership, bad strategy), it’s unlikely to improve even when the market does. In that case, moving to a stronger platform might be the better choice.
Weigh Personal Happiness:
Your current lifestyle—loving your city, being fit, and having a strong social circle—is invaluable. Many professionals in high-stress roles regret sacrificing personal happiness for career gains. If you move to a more prestigious MF but lose these aspects, will the trade-off be worth it?
Mitigate Career Risks:
If you decide to stay, focus on building transferable skills and relationships that will help you pivot later. For example, network aggressively, take on high-impact projects, and position yourself as a standout performer despite the fund’s challenges. This can help you remain competitive in future recruiting cycles.
Hybrid Approach:
Consider exploring opportunities at funds or firms that offer a middle ground—better deal flow and career prospects without completely sacrificing your personal life. Not all prestigious MFs demand a soul-crushing lifestyle, and some smaller funds or growth equity shops might align better with your priorities.
Ultimately, the decision comes down to your risk tolerance and what you value most. If you’re confident you can maintain your happiness while taking on a more demanding role, it might be worth the leap. But if personal fulfillment is your priority, staying put and making the best of your current situation could be the smarter move.
Sources: B-school chances?, Fork in the road: Career path in Asset Management, Not sure if Investment Banking is for me anymore, https://www.wallstreetoasis.com/forum/investment-banking/not-sure-if-investment-banking-is-for-me-anymore?customgpt=1, Is work life balance really worth it when you are young?
"...I’m struggling between going to a more prestigious MF where I know I’ll get very good experience and career-wise it'll be amazing, but all the other aspects of my life will be much worse"
Do you have an offer from a more prestigious MF? If not, this is a pretty massive assumption to make.
If you're planning to stay in PE long-term, it's probably best to make a move if this is a sinking ship since you'll need deal experience. If no deals are getting done / likely getting done in near-term, you probably should start considering recruiting now. If you have a path to stay through VP1 and will likely get some deal experience, I'd stick around for the comp / brand / promo path but start playing the long game on building relationships at other firms with the plan to eventually move at the mid-level since the Sr. Associate / VP1 market is brutal right now and easier to get past that stage in a current seat assuming the path exists. If you're not looking to stay in PE long-term, I'd also just milk the current role for the comp as long as you can before making a next move if you're looking to do a corporate / operating role afterwards. If you want to do public investing then I'd recruit for that ASAP (young person's game and PE beyond the basics of thinking like an "investor" you get after 6-12 months isn't benefiting you in being a better public markets investors)
I'd move ship as well. Good buddy of mine was at a upper midcap fund which didn't do a single deal in five years, only being carried by other offices (and the historically relatively large local portfolio). He obviously enjoyed having very chill working hours, good pay and even got promoted to VP. However, now all but one director responsible for the last portco got axed, from Assoc to MD. All of them have very little deal experience which will now entirely fuck them during recruiting. This is definitely not a good position to be in.
Thank you for all the good advice I am really struggling here as my outside work life is genuinely great. Going to another fund would mean moving to a different country (EU), and it’s a city where I lived for a year and really didn't like it compared to my current one. I guess it is worth it for the career
I think that's the assessment you should make. Do you want to continue being in PE? If not, then ride it out, clip the paycheck, and enjoy your youth. Just don't let lifestyle creep set in since that's the hardest thing to adjust if you're not going to be making finance $$$ long-term.
If your outside work life is great and you’re an associate in MF PE, that’s a red flag. The associate program at these places is not designed to be sustainable. It’s generally 1 click shy of intolerable by design. So there’s probably to your hunch that you’re not getting a good experience.
This is misguided.
All megafunds taste like chicken. Sure the inclination is to think your lesser MF gig is subpar, but it’s more just the maturity of the industry and general macro.
Sure maybe Carlyle and TPG are — at a corporate level — less managed and excellent than BX and Apollo, but the guys on the ground doing deals at both cohorts are doing the same thing.
If you want to go to BX/Apollo over Carylye/TPG because you think they’re better places to build a long term career, that’s one thing. But the idea that work there is more interesting or engaging is erroneous.
Also at a certain point, uptiering for prestige is value additive. Past a certain point, it’s hugely destructive.
Transferring from SUNY Albany to Columbia - good. Laterally from Warburg to Blackstone - bad. Lateraling from Harris Williams to JPM - fine. Lateralling from JPM to MS - bad.
Once you’ve made it inside the palace walls, stop trying to get the best room possible and start assessing opportunities based on their merits and fit for you specifically. Otherwise you just seem like a starfcker, hanging all over one dude at a party and dropping him in a second to throw yourself at the next one that has a quarter ounce more status as soon as he walks in the door. Have some self respect and value for yourself.
This is true. None of these mega-funds are generating alpha or really even pretending to these days, it's an asset gathering machine. It is the best risk-adjusted career to a great living if you can make it, but fund performance is not going to be great at any of these since there is way too much money chasing a very small investable universe. If your goal is to purely optimize for fund performance, you need to go to somewhere where there is a wider dispersion in returns, which also takes on more risk for you.
Alpha is not really anymore. LPs have realized that “alpha” is just excessive risk taking and strong returns just means you’re borrowing from the future. Top 1-2 quartile returns within the asset class is more than sufficient to carry the day.
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