Help deciding between two Corp Dev roles
Hey there,
8 YoE, non-MBA. 31 y/o, not married, no plans for kids for next 3 years at least. Currently a director at a PE-Backed port co (think CVC, Bain, KKR sponsor) that recently transacted. Gearing up for another cycle. My comp is about $215k (base+bonus) with $600K incentive equity (targeted at 3 MOIC). Upward growth is limited as there are individuals above me who will not be leaving. I'm also getting somewhat burnt out after several years of doing deals in the same industry.
Second option: New MM-backed PE platform (on the second year of hold). I'd join at the VP level as the #2 on the team. Cash comp would likely start at $300K and the equity package would be materially larger (assume 1-1.5M). However since it's a newer firm, there's a bit more risk here but the C-suite and sponsor seem sharp based on my conversations.
What would you do here? Ride it out with the more secure role and highly credible sponsor, or take the higher base comp and roll the dice?
I'd take the higher base personally unless the sale of the business is happening in the next 12-18 months and you are confident the sponsor can make 3x equity (although newsflash as you know, more often than not returns are much lower than 3.0x MOIC). Not sure if there is much downside aside from that assuming you were able to somewhat vet the sponsors and their backgrounds.
Thank you for the quick response here. The hold just started here. So that $600K would be theoretically earned in 4-5 years from now. Pretty comparable length of anticipated exit between the two businesses. And yes, definitely aware that 3x is not a guarantee. There's also talk of the exit at my current firm being IPO which further complicates things
Based on the most helpful WSO content, here are the key factors to consider when deciding between these two Corporate Development roles:
Option 1: Current Role (PE-Backed Port Co)
Pros:
Cons:
Option 2: New MM-Backed PE Platform
Pros:
Cons:
Key Considerations:
Recommendation:
If you’re comfortable with the risk and are looking for a fresh challenge, the new MM-backed PE platform seems like the better option. The higher cash comp, larger equity package, and potential for career growth outweigh the risks, especially since you’re not tied down by family obligations in the near term. However, if stability and a proven track record are more important to you, staying in your current role might be the safer bet.
Sources: CorpDev to PE prospects - creating a long-term map / success stories, Leave PE for Corp Dev VP role?, Advice from people who left?, The logic behind going into a Corp Dev/Strat for work-life balance?, Evaluating Corporate Development Roles
bump
The second one seems clearly better... What am I missing? What is the equity package at the second option based on for MOIC? 3x seems like an extremely aggressive assumption for your current place, and you'd need a very good reason to believe it. What do you get if it is a 2x?
Basically trying to juggle between my current role which is at a much more mature platform where deal flow is seemingly endless and we've got the process down, and the new role being a younger roll up and a bit more risky.
Nihil aspernatur repellat cumque cum. Dolores illum magni aliquid magnam sapiente.
Id molestias ullam ut voluptas blanditiis. Quaerat qui nesciunt qui explicabo. Ut minus illum vero dolor provident. A ratione repellat error incidunt repudiandae. Est aut earum quam omnis nam harum inventore.
Sit blanditiis reiciendis quidem. Quia illum necessitatibus voluptatem voluptas quas dolor. Et quis doloremque autem in velit est.
Voluptatibus consectetur illum vitae illo sit. Maiores vel maiores minima qui ipsam ut unde.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...