I have been in conversations with an industry specific firm for about 6 months. The firm's structure smells like a private equity firm, yet they make venture-capital like deal structures in an established industry (and if that doesn't give away the industry...). I made this connection through a former classmate who use to work for what would be my future boss, both at a different firm.
It is shared knowledge that they are interested and intending to extend an offer for an experienced analyst position (I have 3 yrs. experience in the industry @ F500). No compensation numbers have been mentioned except for the fact that I'll have some profit interest (no disclosure on how much, though).
Job description is a front office deal team role. I'd be playing a large part in the investment committee as well as lead the operations once portfolio companies are brought in. The job is within the same city and I am in the midwest (ex. Chicago)
Questions for the group:
1. I'm not naive in thinking this is going to be street pay, in fact no where near. Given the market size of my city, plus the fact this is capital B boutique, I'm looking at this compensation as a big promotion from my current salary rather than a game changing break into PE shift. What is okay to go in with as a number? My current thinking is asking for $85k base, 10% bonus target, 3% merit increase. That would set the next 5 years of an average of $100k at year, non-withstanding if profit interest materialize. That being said...
2. What are good questions to know about profit sharing? Yes, I've read the tax reasons for offering this form of equity compensation online, but for those of you who have experience in this, what are the watch-outs for candidates?
Thanks guys, for those in corporate finance interesting in alt. career paths, I'd be happy to do an Q&A once this all settles and I'm in the new role.
I'm not sure I totally understand your situation (lots of purposeful ambiguity), but here's a crack at answering your q's:
I would ask them to send you a proposal first. That way you don't put an self imposed cap on your potential comp.
Is this a fund you are joining?
Thanks for trying, I'm not into divulging too much, as I hope all can understand.
This would be my first job move since coming out of school, so I'm honestly a little under-educated on the etiquette of the negotiations...I'm assuming, based on your answer, that it is okay to ask for their number first?
Yes, it is a fund I'm joining.
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