Moving from investment team to BD?

Been thinking a lot lately about how I enjoy learning about new companies, don't really enjoy the deep dives that are actually required to do a deal, and I'm an outgoing person that likes to meet new people and have more social interaction than I get on a daily basis. It seems like moving to the business development side of PE would be a perfect fit for me.

Can anyone tell me what a junior BD role at a PE firm is really like? What is compensation like, and what sort of ceiling is there in the long run as you climb the ranks; I assume the comp would be lower than on the investment side? Also, what is your work-life balance like?

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  • Associate 3 in PE - LBOs

It's highly dependent on the firm's BD model but moving over from the deal team is IMO the best background: you already know your firm's story/strategy well, and have execution experience so you can talk-the-talk well. 

In my view there's two types of BD:  1) intermediary coverage, where you're basically the inverse of a sponsors coverage banker.  It's your job to stay in front of all of the relevant bankers and build deep relationships.  2) direct outreach, where you're mapping markets and dialing companies directly.     

Again, it varies a lot from firm to firm.  Comp usually lags the deal team but not by too much and your lifestyle is better as long as you don't mind the travel -- there are no BD fire-drills or blown-up weekends.  I think market for a VP right now at a MM/UMM is like mid 200s all-in and generally includes carry.  The downside is that there are few seats to go around. 

RandomWalkPE, what's your opinion? Comment below:

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