Leaving PE to work in Family Business
Has anyone made this move before? As some background, am a 3rd year PE associate at a growing MM firm with the opportunity to move to Sr. Associate. I like my firm and don’t mind the job but have a bit of a unique situation. My wife’s family has run a family business since the 80s that’s about $3-4M of EBITDA, so still on the smaller side. Her uncle and aunt run the business, both in their later ages and would like to retire but don’t have kids that desire to run the business. They’ve made the offer to me several times to come in and essentially be a VP while training to run it after ~3-5 years once they retire and would have equity. They aren’t opposed to selling at some point in the future but know they have to start to professionalize and actually focus more on a lot of low hanging fruit to grow. Doesn’t seem like a massive risk on my end from a stability standpoint but would certainly be passing on near term upside. Curious if others have made a similar decision and if I’d be dumb to take on responsibility for a business this size.
Based on the most helpful WSO content, here are some key points to consider when deciding whether to leave Private Equity (PE) to work in a family business:
Stability and Risk:
Career Growth and Learning:
Long-term Goals:
Exit Strategy:
Personal Considerations:
Professionalization and Growth Potential:
Community Insights:
In summary, the decision should be based on your personal and professional goals, risk tolerance, and the specific dynamics of the family business. It’s a unique opportunity that could offer significant rewards but also comes with its own set of challenges.
Sources: Private Equity or Pizza Equity?, Family Office Private Equity, https://www.wallstreetoasis.com/forum/private-equity/then-and-now-compbanker?customgpt=1, Private Equity vs Consulting?, Private Equity to Consulting Switch
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