Move or stay?
I’ve been working at a MM fund for almost 2 years now and I recently received an offer to lateral to slightly smaller MM fund with substantially better economics but would need to start as Asso1 again and I don’t know if I should do it.
As background, I really like my current fund, I like my coworkers, work life balance is non existent but I’m ok with that, it’s a well-known brand with good returns and I’m on a career track but I’m substantially underpaid compared to my peers.
I recently interviewed and got an offer to join a less known fund that’s also MM in the same vertical starting again as Asso1 but with substantially better economics. Think current base is ~100k vs 150k in the new fund and bonus is variable from 20% to 60% in current fund vs 80-100% in the new fund. Culture and returns are apparently also quite good.
What would you do?
This seems like a complete no brainer no? You're you're grossly underpaid working at a place with no WLB at all and you have an opportunity to move somewhere with substantially more pay? What am I missing here.
Could you negotiate title? I feel like you could at least get them to reconsider it in a year if you are performing above your benchmark
I can't think of a single well known brand (AKKR maybe) that underpays their Associates. If they are well known and competitive they should pay market
I agree that from the outside this does look compelling. However, a couple things:
1) Consider where you want to be long-term. The real comp in PE (as you know) comes from the carry, and that links to (a) economics of the carry your fund offers (although to be honest even in the late stages of interview it's difficult to get any transparency on this at the junior level), and (b) fund performance (if you're at a great fund that consistently wins industry awards, outperforms its hurdles, and finds it easy to fundraise, those are huge positive points).
2) WLB is a real issue. You've said you don't mind, but does it improve as you move up the ranks? Do you want a family? Your goals and priorities might change in ways you can't anticipate. Admittedly, you're trading "the devil you know with the devil you don't"
3) The demotion will be a rounding error in 10 years. Try to negotiate, but for me this isn't a walk-away issue.
4) Can you do any outside-in due diligence? Speak to people who left this new fund?
If you put a gun to my head I'd say move but try to negotiate the title. At worst you might get the opportunity to renegotiate base at your current fund.
What firm with a “well known” brand pays THIS badly??
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