PE Family Office vs. MF Portco Corp Dev Lead

Based on the most helpful WSO content, here’s a breakdown of the two options and considerations to help you decide:

Option 1: Senior Corp Dev Role at MF Portco

Pros: - Higher Compensation: £140k TC is a clear step up from your current package, offering immediate financial benefits. - Exposure to MF Sponsor: Significant interaction with the sponsor could provide valuable networking opportunities and insights into the private equity world. - Diverse Work: A mix of internal growth initiatives and external M&A could broaden your skill set and keep the role dynamic. - Brand Name: Working at an MF Portco adds prestige to your resume, which could open doors for future opportunities.

Cons: - Work-Life Balance: MF Portco roles are notorious for demanding hours, and you may face PE-level intensity without the corresponding pay or carry. - Limited Equity Upside: No equity yet, which means you’re trading time and effort for a fixed compensation package. - Corporate Environment: While less bureaucratic than your current role, it may still involve internal politics and red tape.

Option 2: Investment Manager at PE Family Office

Pros: - Direct Investing Experience: This role transitions you into the buy-side, which aligns with your long-term goals. - Entrepreneurial Environment: Family offices often provide more autonomy, flexibility, and exposure to a broader range of investments. - Carry Potential: While the fund is small, the carry (3% on the current fund and 5% on new funds) offers long-term upside if the investments perform well. - Work-Life Balance: Family offices typically offer better work-life balance compared to MF Portco roles, though this can vary.

Cons: - Lower Initial Compensation: £105k TC is a step down from your current package and significantly lower than the Portco offer. - Risk of Promises: The promise of a significant pay increase next year is not guaranteed, and the carry may take years to materialize. - Smaller Scale: A small fund means fewer resources, potentially less deal flow, and limited brand recognition compared to the MF Portco.

Key Considerations:

1. Long-Term Goals: If your ultimate aim is to transition into private equity or direct investing, the family office role aligns better with that trajectory. However, it comes with financial and career risks.
2. Risk Tolerance: The family office role is riskier due to the lower initial compensation and reliance on future promises. If financial stability is a priority, the Portco role is safer.
3. Lifestyle: If work-life balance is important, the family office may offer a better quality of life. The Portco role could demand long hours with less flexibility.
4. Brand vs. Autonomy: The Portco role offers a stronger brand name, which could be valuable for future moves. The family office provides more autonomy and entrepreneurial exposure but lacks the same prestige.

WSO Insights:

• Family offices often appeal to those seeking better work-life balance, broader investment exposure, and a long-term horizon. However, they can be unpredictable, and compensation structures vary widely.
• MF Portco roles can be intense but provide excellent networking opportunities and a strong brand name, which can be leveraged for future roles in PE or Corp Dev.

Recommendation:

If your heart is set on private equity and you’re willing to take a calculated risk, the family office role could be a stepping stone into direct investing. However, if financial stability and a stronger brand name are more important to you right now, the Portco role is the safer bet.

Sources: Q&A: Head of PE at Asian SFO, Is MM PE a smarter move than MF, Family office Private Equity - help, Family Office Private Equity, (Mis)adventures in PE fundraising (part 2)