I’m an Investment Manager at a European PE fund (think DACH region) with €3bn AUM. I’ve been here for three years, and before that, I spent 3.5 years at a smaller fund (€100–150m). I’m 32 years old. Total comp is around €250k, and I have 1% carry (out of 100%) in both the newest fund and the previous fund (vintage 2020). Performance is top quartile — no distributions to date, and first carry is expected in 3–4 years.
My first firm was much more enjoyable. The culture and entrepreneurial spirit were better, and I had more freedom. Where I am now is more institutionalized. The culture is terrible and, despite my title, I mostly do analysis work. It’s energy-draining despite the comfortable seat.
Now I’ve been given the opportunity to become a co-founder at a new firm. The committed capital is €75m (deal-by-deal structure with carry), and there are two other partners (both 45+). I would receive 25% of the carry. The historical track record is solid, and I’ve known one of the partners for over seven years. Salary/bonus would be significantly lower (think 30% cut). I see this as a chance to start building something, do my own deals in a much better atmosphere. At the same time, I’m fully aware of the position I currently hold and the fact that I already have carry (I am not vested yet). If I leave, I would forfeit all of it. There’s more upside if it goes well — but also greater risk. The first deal signed last week and the offered carry structure applies.
What’s the right move?
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