PE Origination vs PE IR - what would you choose?
As title suggests, two offers on the table. I have a stacked CV but recent job market means I am trying to get whatever I can take - which of the above provides most optionality in exits? WWYD?
Two very different roles, but congrats if you have both in hand. This is how I would think about it, and will offer up the disclaimer that I am in BD (origination - banker coverage). Some thoughts:
- Key consideration is what you truly *want* to do: source deals or raise capital. “BD or IR” is analogous to the more common “banking or consulting” question: two distinctly different careers. I guess the commonality between the two is the outward-facing nature of the role so both are very EQ dependent and tend to favor extroverts.
- BD roles are probably less standardized across firms. I’m in intermediary coverage on a small team and believe this is optimal: I’m comp’d well with good WLB and have room for advancement at a growing (AUM) shop. If you’re in a more proprietary (cold outreach) role this could look very different. If you’re a junior on a larger team, this could look very different.
- IR at a blue chip name will be a different experience (safer, more defined path) than at a first-time or emerging manager. You will be beholden to your firm’s name and track record. Your BD experience is also dependent on fundraising, I.e., don’t take a seat at a firm struggling to raise because obviously, you’re not getting looks at (decent) deals without money.
- Exits are fairly narrow. BD and IR *are* exits, so you will have plenty of optionality for lateral moves. Have seen BD peers move back to sell side in sponsors roles, and similarly IR folk moving into PCA/PFG roles at banks, and occasionally allocator roles.
They are both great careers where you can make a ton of money doing interesting work. I think a good BD role is the best job in the industry, but again, am highly biased. I’ve never sat in IR before so no firsthand experience to comment on. Can try to answer any follow-ups here.
Super interesting, thanks a lot for sharing your experience. I‘m currently in a mid-market PE investment role (assoc with visibility to VP in 1-2yrs) with a c 70/30 deal execution vs origination split.My biggest strength is sourcing (always ranked highest across firm) so I‘ve been thinking whether I should at some point make the switch to a full sourcing gig.What‘s your experience on such a switch and could you provide details on how you are measured + comped? I‘d be looking for a VP role at an UMM or MF (in Europe) ideally.Also, which firms do you know have such dedicated sourcing / bd teams? I know of HIG, KKR (?), PSG.
Have seen that move a handful of times. It’s not super common since people who enjoy executing tend to stay executing, but that experience positions you very well. Some firms also will combine BD and capital markets which could help you scratch that itch.
I’m comp’d very similarly to the execution professionals (org chart wise I sit within the investment team). Personally I would never work in a KPI-driven role where comp can vary based on no. of IOIs/LOIs on your deals, equity deployed etc. - too easy to get fucked in a down market, but those structures are common . Short answer is: so long as the top of our funnel is full and our competitors aren’t announcing deals we never saw, my partners are happy.
I’m in the US with limited knowledge of the European market but most scaled firms should have the function.
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