In a good seat at a tech growth investment firm ($2B+ fund; on paper, returns are good so DAW could actually be worth something in current funds). New Partner recently promoted from Principal (one of four Partners).
Feeling burnt out and want to coast a bit. Curious, what is the minimum capital deployed per annum + minimum returns you think to stay in the game, not get fired, and see multiple fund cycles play out...
The mentality shifts a bit when moving from Associate - Principal to Partner... where the former you are incentivized by deal experience + swinging for fences (if something bangs early in growth, could see an accelerated path to Partner).
thoughts?
Based on the most helpful WSO content, the expectations for a Partner at a tech growth investment firm ($2B+ fund) can vary significantly depending on the firm's culture, strategy, and performance metrics. However, here are some key considerations:
Capital Deployment Expectations:
As a Partner, you are expected to deploy a meaningful amount of capital annually. While there isn't a universal "minimum," deploying $50M-$100M+ per year could be a reasonable benchmark for a $2B+ fund, especially in growth equity. This ensures you're actively contributing to the fund's investment pipeline and maintaining relevance.
Returns Expectations:
To stay in the game, you need to demonstrate consistent performance. For growth equity, achieving a 2.0x-3.0x MOIC (Multiple on Invested Capital) and 20%+ IRR on your deals is often considered strong performance. Falling below these benchmarks over multiple fund cycles could put your position at risk.
Burnout and Coasting:
While coasting might feel tempting, it's critical to maintain visibility and relevance within the firm. Even if you're not swinging for the fences, you should focus on steady, reliable deal-making and portfolio management. Partners who fail to contribute meaningfully to the firm's success—either through deal flow, portfolio oversight, or fundraising—risk being sidelined or replaced.
Fundraising and Team Dynamics:
Beyond deploying capital and generating returns, Partners are often evaluated on their ability to contribute to fundraising efforts and maintain strong relationships with LPs. Additionally, being a team player and supporting junior team members can solidify your position.
Long-Term Perspective:
To see multiple fund cycles play out, you need to balance short-term performance with long-term strategic contributions. This includes building a strong track record, maintaining LP trust, and ensuring your deals align with the firm's overall strategy.
In summary, while there isn't a strict formula, deploying significant capital annually, achieving strong returns, and contributing to the firm's broader success are critical to staying in the Partner seat over the long term. If you're feeling burnt out, consider delegating more to your team or focusing on fewer, higher-quality deals to maintain your standing without overextending yourself.
Sources: Starting a Private Equity Fund/Firm, Data: Average Private Equity Compensation and Carry from Associate to Managing Partner, What returns have you achieved from co-investing in your fund?, Top Venture Capitals that hire juniors?
This feels like it's pretty firm specific (where in the fund lifecycle you are, fundraising timeline, etc.) and if you got the promo from Principal to Partner you should probably be able to assess this. With that said, I can entirely appreciate being burnt out from the grind up to Partner, but it sort of feels like that would have been wasted if you decide to stop now. After 2-3 years as Partner where your role has been solidified and you're more comfortable in your seat seems like a better point in time to try to coast more
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