Issues with joining a 5 person PE fund

In the final interview steps for a small fund.

Where I am at now is a good real estate investment group. It is a family office but has strong access to capital. It has a pretty good industry rep, with exit ops including the likes of Oaktree and Carlyle. However, they have major issues with comp (have not paid bonuses in 7 years). I am in the acquisitions group.

The other opportunity is at a small family office with ~$800MM AUM, and this fund ($50MM) is the only PE fund i.e. the other money is in typical wealth management dollars. They invest $5-10MM in small companies; this amount generally gives them a controlling position. However, the comp is better and hopefully more secure. If my current shop paid a bonus, it would be a 15% bump, otherwise it is 50% bump. The experience is more broad PE work, including acquisitions and working with portfolio companies.

Everything in me says this is a very risky move. I feel like my current shop provides such diverse re experience that I would have better exits ops, but the no bonus is killing me. The other will likely pigeon hole me to $400MM vanilla PE funds, but I want (need) the money.

Anyone have thoughts on this?

1 Comments
 

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