Leaving private equity after 6 months
Hello all, I'm considering leaving my current role at a solid middle market PE fund for a startup gig after about 6 months into my first year as an Associate. Pretty unprecedented at my firm to be leaving this soon, so would love any advice on how to do this as gracefully as possible.
Safe to say bridges will be burned, but the people here are generally nice and I hope I can salvage some relationships for the longer term. Appreciate any thoughts!
Deleted
what's your salary ? bonus ?
why don't you wait 6 more months just to get your bonus ?
Current Salary + Bonus is $250K+ with bonus cycle in the summer.
For the startup gig, which fell into my lap somewhat unexpectedly, cash pay would be close to $200K with about 150% of that in equity. The timing consideration here is that the startup is looking to raise in January, which would be expected to more than 3x my equity immediately (I'd be getting in at the lower valuation).
Wow that cash comp and total package is incredible - do you mind providing more details on the process / how you snagged that? I’m a 1.5 years into my PE career and looking at a startup exit and am getting 150k base + ~15/25k equity per year (~60-100k vesting over 4 years)
Is your bonus cycle December? Check your contract for a clawback.
I'd just be graceful and say you've enjoyed working there but have an opportunity you simply can't turn down, hope to stay in touch, etc.
Make sure the startup gig is THE one both in comp, role, outlook etc. It will be very challenging for you to get back into PE if it fails so the opportunity better be simply outstanding.
Give me your PE job first and then you may leave kind sir
Some general thoughts to make it more easy:
1) Go to your staffer / head of your group first - rumors like these spread faster than the virus and you wouldn't want them finding out from a junior
2) Continue operating as normal, even after you broke the news to anyone until the last day out I would even keep taking notes on calls - people will notice this and appreciate you for it
3) Even if they don't - it's completely on them. Whenever you break the news they may react nicely or rudely or shocked or whatever - any of these are valid but that is completely on them and nothing you should feel good or bad for. Every single one of them is looking out for themselves and what's best for their careers, as they should, so take any dramatic reaction as a sign of immaturity and dont let it bite you
4) Be honest on the reasons you are leaving, they are valid and people would appreciate the transparency.
5) If you have any real connections in it then they will be happy for you otherwise they're either trash people to start with or you didnt get to build any real bridges to burn so dont worry about it
What if he wants to go back to PE down the line, maybe post-MBA? What will happen?
no idea, OP asked for advice on how to break the news after 6month and that's my take on it assuming that decision is made. If he goes to HSW and wants to come back to the industry there's so many funds out there already and at this ridiculous rate there will much more in 4 years so with the right story he will find one to take him just not your typical cookie cutter KKR, BX, TPG, etc
Given he wants to leave PE after 6 months, I'm guessing he is likely not looking to go back to PE. Preserving optionality is generally a good thing, but if he's done 2 years in IB and a few months in PE, then chances are that this just isn't the right fit.
Veritatis nostrum velit commodi. Delectus et aut at qui quia earum. Libero asperiores quam sit atque dolor. Omnis ratione veniam minus enim et et quae. Omnis vero omnis veritatis in eum vel eum est.
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...