Considering pivoting from my current investor seat at a LMM-focused PE firm to a CoS role at a PE-backed landscaping business.
For context, I'm an Associate 3 up for promo at year-end. The role is at a different PE firms' PortCo and is described as having ownership over M&A, integration, strategy, and ops (so, pretty broad). Report directly to the CEO.
From a comp perspective, quoted at mid-to-high $200s cash which is half-decent. Equity is on the table, but hasn't been specified.
This brings me to a few questions:
- For those who made the switch, were you permanently "pigeon-holed" from investing?
- Outside of being a CoS at another PortCo, career progression is largerly undefined. What are typical exits from this role?
- What should I be cautious of or ask about during the interview process before taking this role?
Thanks in advanced WSO community.
What do you want to do long-term? Some COS roles are funnels to be leaders of a business area; a lot of COS roles you're a super-admin, don't really gain any skills or touch anything, and have limited exits.
I would diligence what excellence looks like in the role and what the main things the CEO wants off their plate are. What is the admin setup and what does partnership look like with them. That's a lot of items to "own". Ideally you're spending more time working on one of those segments or truly digging into the business in some way, rather than writing CEO talking points, deconflicting the calendar or being the email gatekeeper to the CEO.
Not likely to go back into investing. Maybe at your old fund if you leave on excellent terms
Greatly appreciate the thoughts.
I have a few reservations with leaving the investing seat, however, I could see this being a valuable opportunity to gaining more hands-on "operating" experience, which I could see having a strong carry-over if I ever wanted to go the entrepreneur-route. Of course, that is pending if the CoS role isn't being a glorified calendar jockey.
Your other points are noted. Certainly worth diligencing during the interview process.
I have never had a CoS role, but the responsibilities you listed sound like it should be more of a COO or CFO type role. If you are truly "owning" those areas and are responsible for the people/teams in those areas, as well as the results, then CoS doesn't sound like the right title to me. It seems like the CEO is trying to get a COO combined with a CFO (or VP of Business Development) for the price of a highly talented admin (CoS). If the equity is meaningful and the company is small enough that you could potentially manage all those areas, then maybe. But it sounds kind of suspect to me.
Appreciate the feedback.
Given that this is a LMM portco (think mid-to-upper single digit EBITDA), I think it makes a bit more sense from face-value that the role would have a wider coverage of responsibilities. Noted that it does seem like a cross-section between a COO/CFO, which is interesting since they supposedly already have a CFO in-place.
Any recommendations on key questions or areas I should look out for in the interview process?
I'm in a CoS role. Comp and equity at his range at a likely LMM PortCo seems fine for the hybrid COO/CFO, probably wouldn't characterize as admin pay.
CoS in general can be a really mundane or exciting job, really depends on the opportunity and setup. My prelim. thought is that the role can be genuinely exciting at either startups or mature-stage companies. In between is where you tend to get the more obscure roles, need to flesh out the scope. For future PE recruiting, I think it looks better if you went to a PortCo at your fund vs. out-of-network.
Not OP but have been thinking about a similar role at my portfolio company for the fund that I worked at. Is it a relatively straightforward story to tell in interviews if I tried to recruit for another fund in 6-12 months? Would I be able to get an equivalent title if I have 3 YOE in PE?
My goal is to get back into investing at some point, but it likely won’t be at the firm that I just worked at so trying to navigate that is what worries me
Haven't tried my hand at re-recruiting for investing. May or may not as I'm in a pretty unique role. If you're dead set on investing, I think it helps to have a hard hook on why you spent time at that PortCo. Paired with a rec from a partner at the fund, I think it's almost a differentiator (esp. in the LMM - MM where StratOps is becoming increasingly rewarded).
If your situation is more of an interim step to another PE role, I imagine the rest of your resume will have to hold weight.
Have fun writing email drafts, thank you notes and arranging the CEO’s calendar.
Chief of staff roles are awful - only do them if there is a clear guarantee that you will transition to a functional area of the business. You’re too generalist and own nothing and no one will know what to do with you or what job you’re qualified to do. In corporate, ownership is everything if you want to move up to the csuite. I would rather work in corp dev or FP&A that be a chief of staff if I were you.
Appreciate the thoughts.
Sounds like it would certainly be worth getting a better sense of ownership scope (i.e., % of time focusing on one area vs the other). Perhaps that could give me an indication of what a future functional role I could take over would look like.
You should ask for an explicit guarantee that after 12 months you would transition into a meaningful role within the business. If they don’t give that to you, don’t take this gig. Chief of staff gigs sound sexy but you’re basically just a glorified project manager for the csuite in charge of aggregating information into decks and not actually doing anything real. You’ll work volatile hours because you’re at the CEOs beck and call and you’ll find yourself learning very little apart from how to run a decent meeting (at best). It’s only worth it if it’s a spring board into a functional role you otherwise wouldn’t have access to. If you stick around too long, no one will know what to do with you and you’ll end up as a career CoS making very little, with no upward mobility, and with no proof points of your ability to actually lead any function within a business.
There are many ex-PE associate who worked CoS jobs who hate their lives. Go work in corp dev or FP&A and get real functional and transferable skillsets that recruiters and other companies understand and be on an actual path to a real c-suite role.
Left MF PE and joined a strategic finance role at one of my portcos. Hours went from 80-90 to 55-65 overnight. Comp still in low 300k which I am ecstatic about. Obviously a paycut to what I was making - like $395k-ish at my MF but am happy with the hour trade offs and stress.
Congrats! Seems like a great gig and really comfortable comp.
How many YOE or what lever were you at when you switched? Also, what level are you in strategic finance?
Thank you sir! Happy to answer any more questions too. I did 2 years IB 2 years PE. I am a senior associate in my strategic finance role. If helpful, my first year my base was $165k and bonus was $160k. Extremely high for corporate, but I do not have any equity.
That's a sweet gig! What sector are you working in, if you don't mind me asking?
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