Long term commitment to a PE fund
After three years on the sell-side, (one year grad scheme in London, two years at regional bank in my home country). I have the opportunity to join a $2bn Single Family Office near my hometown (tiny village so opportunities are extremely rare) as an investment analyst, primarily focused on LP investing and some direct. Everything seems perfect (mostly LP investing which I prefer, location, institutionalized SFO meaning opportunities to advance from analyst to assoc to IM etc.)
The only reasons I'd leave are:
- Starting my own business.
- A chance to join a Zurich-based SFO of similar size preferably after getting promoted at my new firm to at least 'senior associate' level.
SFO opportunities aligning with my interests and prestigious families are rare, especially in Zurich. So, I've seized this opportunity and am also open to stay there during my whole career (which the family actually prefers) if nothing better comes along
Do you know of examples of people joining Family Offices or Private Equity firms for the long term? Especially if funds are not in "financial hubs" (e.g. London / NYC)
Absolutely, it's not uncommon for individuals to join Family Offices or Private Equity firms for the long term. In fact, it's quite common in the industry. The key is finding a firm that aligns with your interests and career goals, which it sounds like you've found.
Here are a few reasons why people might choose to stay long-term:
Alignment of Interests: If the firm's investment strategy aligns with your personal interests and expertise, it can be a fulfilling place to build a career.
Career Progression: Many firms, like the one you're considering, offer clear paths for advancement. This can provide a sense of stability and a clear career trajectory.
Location: If the firm is located in a place you enjoy and want to live, this can be a big factor in deciding to stay long-term.
Work-Life Balance: Some individuals find that family offices or smaller PE firms offer a better work-life balance compared to larger firms in financial hubs.
Relationship with the Family: In a family office, developing a strong relationship with the family can lead to a long-term commitment to the firm.
Remember, every career path is unique and what works for one person might not work for another. It's all about finding the right fit for you. Based on the WSO content, it seems like you've found a great opportunity that aligns with your career goals and personal interests. Best of luck in your new role!
Sources: some basic questions about PE, BlackRock Raising a $10-$20bn direct PE investment fund, “Long Term Private Capital”, https://www.wallstreetoasis.com/forum/private-equity/co-invest-and-carry-what-happens-if-you-leave-the-firm?customgpt=1
Yes, people do join PE and SFO for the long term; and it isn't uncommon to stay 10-15 years, with potential for career progression.
In the case of a SFO, remember that many of these families have a history (in my case, multiple centuries); and so, there is a strong desire for long-term stability (in every possible way), and often a strong preference for staff to remain long-term.
You will learn that getting hired by the SFO can be difficult; but once in, if the family likes you, your chances to remain there (long-term) are pretty strong.
Also, in some cases, they might have a NYC or London office, but also another office elsewhere (often unknown); and sometimes the ability to transfer between offices. Meaning, seeing that a FO might be tied to NYC/London, doesn't necessarily mean it's their only location.
Further, some SFO will have a related PE firm (as in my case), or other related divisions (RE, etc), or related separate companies they own; and will sometimes allow for transfer/progression between each of these business units -- it does happen, occasionally.
I have even heard of cases where a trusted, long-term employee, was offered a C-level or board role at an acquired company, to represent the interests of the Family Office.
It happens more than you might assume; but as you noted, such families with a SFO are rare, and that also makes the topic especially rare to be discussed (often, due to strict non-disclosure policies), but your career hopes are not entirely uncommon within that often-secretive world -- especially with old families, many are largely unknown, including how they operate, but your hopes appear to be at least plausible, with some effort.
I hope this was helpful.
Pardon my ignorance – can you reclarify the meaning of SFO
Single family office
Single Family Office (SFO) refers to a family office that manages the wealth, and often everything else, of single wealthy family.
Multi Family Office (MFO) refers to a family office that manages the wealth of multiple families; often more like a boutique provider of family office type services, rather than a dedicated family office.
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