Move from FP&A to PE
FP&A Manager at an Ag company, and just got an offer from a PE firm to join as an Associate. It is a more niche PE industry (Ag). Base Pay is very similar and the way the bonus was described I'm not sure how much more the all-in comp would be than my current role, especially considering how many more hours I will have to work. However, in terms of long-term career (I'm still in my twenties) I imagine working in PE opens many doors, and it is probably my only chance to make this move to the investment side. Am I an idiot for even hesitating in thought?
Unless you objectively are in an A+ seat, then yes I would take this job. It's quite simple I think - you'll be able to get your old job (or similar) back if you want it. It's low probability that you'll get another shot like this again. Will open many doors for you and certainly not shut the one you'd be walking through. Go for it and a big congratulations.
I appreciate the comment. Are immediate tangible opportunity costs foolish to consider you think? Basically, no salary increase (from FP&A to PE) which I would think is unheard of, and not getting an anticipated year-end bonus at my current firm to jump on this opportunity or any any signing bonus to alleviate that loss as well. Don't know if my thinking is too short-term, but also guaranteed near term pay vs potential long term pay is tough to weigh.
Not foolish certainly. Sounds like this sector-focused fund is small and regional - not a surprise given you're a non-trad candidate. But forget long-term (>5 years) pay for a second. Basically, if you do this, the following are all true or likely true:
Really appreciate the comments.
The near term bonus comp is 15% (just north of $20k), which isn't life-changing, but it's frustrating to left on the table when I earned it and the PE firm is unwilling to match or help alleviate the loss.
Is the prestige of a PE investor role really that much stronger than FP&A for mid-level finance/strategy/ops roles at corporations, or only if you stay in PE in the long term? Especially like you said, if it is a smaller LMM niche regional PE shop?
Will note at the outset - go look at peer funds on linkedin and see where past people have gone. Should give you a reasonable baseline for what opens up for you after.
Yeah that bonus wouldn't really factor into my decision-making calculus too much. Obviously it varies between corporates, but on the whole yes. Will be less about prestige (especially at a small fund) and moreso about the functional work you'll be doing (or at a minimum what you can claim you've been doing haha) - thinking about businesses drivers holistically, executing control transactions, understanding how to drive growth and efficiency post-investment, working with respected execs in your space. You'll be seen as having more commercial acumen than with your current profile - whether or not that's true in practice is somewhat irrelevant.
You'll also build a broader network by virtue of meeting more companies, which will mean more people will know you as a person who could do that work for them. As well, if you're ever thinking about an MBA, I would bet that will make a difference (not Harvard/Stanford/Wharton, but a good shot at a T15).
Re your current role, FP&A just isn't perceived as very shiny or desirable in most cases, and that makes a lot of sense - modeling is a heavily commoditized, basic (though very useful) skillset (simplifying what FP&A does here ofc). Not a true differentiator for corpfin or front office finance people over the long-run - think about it: if it was the real difference-maker, would they trust people in their early career to be handling the majority of this work? The real secret sauce is in your ability to generate revenue, make good investments and cut costs (without endangering operations).
Illo quo consequatur quam est fuga voluptatem eos deleniti. Sed laborum aut qui eaque. Qui ut odit voluptate eligendi nihil aut provident ut.
Perspiciatis dignissimos qui error ut vero cumque velit. Neque doloremque qui voluptates et. Quasi perspiciatis expedita dicta in quis temporibus. Ut aliquid asperiores vero voluptatem iste ut.
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...