Give Up Role I Am Happy With to Recruit for PE?
Currently in an E&F role which is intellectually stimulating, offers a great WLB (9 AM to 6 PM), relatively prestigious (Howard Hughes / HYPSM endowment), and pay is fair (see below). Am I crazy for wanting to pivot to PE?
Pay is roughly (average for each title): $150k analyst, $200k associate, $300k VP/director, $500-700k junior MD.
The core issue is that the LP / allocator industry is very top heavy and once someone enters an MD seat, they often stay 10+ years (see HMC's and Princo's MD rosters for examples of this). Because of this, most people jump from endowment to endowment to get promoted which requires them to lose their track record (since each decision takes year to play out). Additionally, as an LP (other than co-invests), I feel like I am too far away from the real value creation and investing which is why I entered the role to begin with (the core reason was to assist in the mission of the university / higher edu but I digress).
My main interest in PE is to be tied to a fund, where I am able to feel deeply connected / able to take ownership of the returns - as well as for the faster paced environment of learning (plus the possibility of carry is a clear positive).
My thinking is that if I dislike private equity, then I can also do an MBA (I interviewed at some M7s via deferred) and move back to AM. I am unsure if my reasoning is strong-enough to justify a career-pivot, or if this is just a case of thinking the grass is greener.
I think you should worry about if the pivot is even possible before you get to this question.
You would be surprised at what is possible with time, commitment, and being open to roles outside of MFs. Additionally, many coworkers at my current firm came from PE at well-known / top quartile shops, and so I doubt it's a one-way street.
I don’t doubt the possibility. It’s just an irrelevant question until you actually have to decide between the two possibilities. Not sure what is so triggering about readjusting your order of operations. Thank you for the MS though, I embrace it.
Neither the justification nor the viability of this move seem strong.
Fair point, my justification / rationale is admittedly weak and this is my main concern. Unsure the true level of conviction which people have when moving roles, although it seems safe to say it is higher than what I have. On the second point, it would definitely be an uphill battle.
What are the reasons for ex PE to move to your current place? Mainly WLB? Feels like a big paycut to take also loss of carry
WLB and the mission mainly. A lot of them wanted out of NYC, into a role which was less stressful, and to support their alma mater / the mission of the foundation. The senior folks are nearly all very focused on the end users we serve / creating more scholarships or grants. Senior MDs make $1-3 million, so comp is definitely not what it is in PE, but it's high enough that I doubt that the pay is a major deterrent - although becoming a SMD can take 15 years.
ownership comes from within. if you feel like you need to be tied to a fund that's probably more a "within you thing". grass isnt greener. that fund may not perform and if you realize you dont like your team well tough luck because your money is tied up
dont get caught up in the chase
You don’t even have an offer anywhere. Not worth having this conversation until you do.
I made the same comment but apparently OP isn’t ready to hear that, even though it’s common sense.
It's not worth having this conversation on if it makes sense to recruit for PE... before I have a PE offer? That makes no sense.
OP clearly hasn’t done much research. Until you network, learn more about what careers paths are available in PE and start interviewing with firms you aren’t going to know if it’s for you or even a possibility worth considering against the alternative path above.
Agree with others that this is a difficult and unlikely move. Especially since it seems like you started there out of college - could maybe make the argument if you had IB experience and this role was only a few months, but I don't think you are qualified for PE right now. Would need to go to IB first. You cannot just network your way into a role that requires significant deal / execution experience even at the ASO level.
With that said - could maybe move to a more traditional AM role if you want to be closer to the action and have more opportunity to move up.
I disagree with the other folks here. It is worth to think through this now. Life is not as linear as described here and with enough determination and effort, a switch to PE is possible. I have some acquaintances that just did this (in Europe).
Heads up and do what you want to do.
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