Being an LP seems like a chill and easy job. You get to fly at 10,000 feet, travel to annual meetings where you just listen to things, boss around PE people, make co-investments with limited diligence, and the money is pretty good relative to calories burned on the job.
What are the drawbacks?
| +60 | Working on Juneteenth | 35 | 13h |
| +24 | From Public Equities to Private Equities | 4 | 5d |
| +22 | Hardest time I have ever seen to be a GP | 3 | 1d |
| +19 | How to Get on Career Track / Stay Post ASO years | 6 | 18m |
| +18 | Weighing exit from LMM PC/PE | 3 | 14m |
| Search Fund Internship Vs. Internship at my family's Family Office | 10 | 1d | |
| +15 | Healthcare PE | 6 | 1d |
| +15 | KKR comp for Principal | 11 | 27m |
| +15 | Anyone have intel on Aterian Investment Partners? Culture, Comp, Performance? | 9 | 4d |
| +12 | LMM groups within larger platforms? | 1 | 5d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Imagine it’s chill until it’s absolutely not and you have to face immense pressure for underperformance similar to PE
recent noise at CalPERS:
https://www.nbcnews.com/news/amp/rcna215534
Wow. "'What we’re seeing is an absolute wholesale looting of the fund through fees being paid to outside managers. They are letting billions of dollars fly out the door with no benefit'...CalPERS’ executive ranks have also experienced turmoil over the past decade. A former chief executive of the fund, Federico R. Buenrostro, received a 4.5-year prison sentence in 2016 for accepting $250,000 in cash bribes from a placement agent who solicited pensions to invest in private equity funds."
To me it's likely just lack of upward mobility and a pretty boring job, but I've seen some ex Partners get roles at big family offices/endowments I'd agree that it seems like a pretty cushy gig.
Seems like cyclically some of these groups are moving away from heavier PE exposure though, so that might limit things even more.
That said, if you were able to come in at a relatively senior role for a pretty good organization, I think you'd make decent money and could tout that you're protecting the endowment/pension for future generations, which is a slightly more noble cause than just purely trying to profit off of middle market businesses.
Not all LP roles are equal. Massive public pension plans are so hamstrung due to size with what they can do (UMM and MF only) and pay is not that great until you are 50 years old. Family office and FoF tend to pay more and are able to do a lot more interesting stuff (especially FO) than pension plans. Endowment's feel like they're somewhere in between and likely less pressure for performance but also new scrutiny of taxation/politicization.
Who flies at 10,000 feet?
The helicopters from the Bin Laden attack flew below 100 ft. Pretty similar to being an LP.
Molestiae blanditiis voluptas aut ullam. Eos eos aut aperiam quia deserunt. Quibusdam voluptatem aut eos aspernatur molestias nam sed. Ipsum alias laudantium sint explicabo animi.
Ipsum voluptate ad autem et qui. Velit nihil ratione dolorem molestiae vel dicta. Voluptatem aut hic ut ut. Sunt consectetur mollitia sunt quasi quia.
Voluptate optio autem dignissimos maxime mollitia ipsam. Repellendus id ut nostrum doloremque.
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...