PE Sr Asso to PE-Backed Company?
Currently a MM PE Senior Associate and in a process for UMM PE-backed Corp Dev/FP&A seat, how hard/easy would it be to get back to a PE investment seat if went this route and didn't end up liking working at the PE-backed company? Would I have to get an MBA?
Transitioning from a MM PE Senior Associate role to a PE-backed Corp Dev/FP&A seat can be a strategic move, but returning to a PE investment seat afterward may present challenges. Based on the most helpful WSO content:
Returning to PE Investment Roles:
MBA Requirement:
Key Considerations:
Ultimately, the decision depends on your long-term career goals. If you’re unsure about the corporate route, it might be worth exploring other PE opportunities or considering an MBA to keep your options open.
Sources: What is the point of doing private equity if you will be pushed out after two years to get an MBA?, Corporate Finance Q&A with accountingbyday, BJM85, STorIB, and djfiii, From Private Equity Associate to VP in Private Equity, Q&A: Private Equity Portfolio Company CFO, Corporate Development Manager - Q&A
In a similar boat currently, what route did you go down? Any insight would be appreciated
Ended up not taking it as comp wasn't worth it + everyone I spoke to in my network said it would be extremely tough to move to another PE seat after. Stayed in the market and lateraled to another investment seat.
Would highly suggest sticking it out until VP in your current seat if it's possible. Otherwise you'll likely get pushed to senior associate roles if you do decide to come back to PE
I’m in a little bit of a unique situation. I just wrapped up my third year at a solid MM firm (wasn’t an opportunity to stay on for longer). Have been recruiting for a few months without a ton of traction for senior associate roles (have mainly only looked in my current city
(which is a tier 2 city). Exploring a unique opportunity to get hired as the director of M&A for a large portco that just changed hands from one very well known sponsor to another. The industry is in the same vertical (industrials) I’ve worked for the past 5 years and M&A is a huge party of the value creation thesis. Comp is pretty much inline with what I make now with equity (don’t know what the amount is yet). Do you think if I end up taking this opportunity, diversifying my skill set a bit by being more in the weeds of integration and the actual operations of a portco, etc. and then decide to try and recruit in 2-3 years I would get much traction? I closed 2 platforms during my time in PE and did 15 or so add ons in addition to a number of value creation initiatives so my PE experience was solid. I definitely wouldn’t come back to PE to be a senior associate again, would look for a VP role if anything. Would appreciate any thoughts or insights
I think you'll be able to get back into PE I just don't know that you will be given full credit for those 2-3 years in corp dev. The VP-level job market is awful right now - tons VP1-3s with top-tier backgrounds vying for open seats. Not saying it would be impossible to find a VP role but with the market the way it is, I could see lots of firms slotting you into a senior associate position where you'd have to do another year before VP
Big question is - are you actually interested in the corp dev role or is it just a stepping stone back to PE? If it's just a stepping stone, then just take it and continue recruiting for senior associate roles but don't stick around longer than you have to. The incremental 2-3 years in corp dev won't benefit you much for PE recruiting (better to just be back in PE)
This is all makes sense. I’m interested in the opportunity because 1) it’s in my hometown where my wife and I live and I have friends and family 2) comp is solid with potential for a decent payday 3) the sponsor is a household name and the market the portco is in is really attractive.
I could see myself actually enjoying the work and finding a career in the “corp dev” route as working with management teams, being onsite at my portcos, etc was always what I enjoyed about PE. My main concern about this role is that I don’t want to be silo’d into doing M&A for the rest of my career if it turns that I don’t love it and want to pivot into something else (even if it’s not PE again). I do feel like there is an oversupply of PE talent (to your point) and a constant under supply of really solid corp dev talent so maybe these opportunities become more attractive in the future. Who knows…
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