PE vs Family Office vs Tech Startup
I am currently at a growing tech company that works with some of the top firms in private equity on both gp and lp side in an analyst role. I really enjoy pretty much everything about the job. Great people, no long hours, hybrid work/relaxed fintech culture, exposure to the PE industry, and potential to rise the ranks internally and equity eventually. However the pay is abysmal, especially for NYC. That prompted me to test the market and pretty quickly saw there is high demand for my skills as many firms are looking to incorporate similar technology/practices to what I currently do and that I could essentially come close to doubling my comp. This has led to two offers quickly, one at a top tier family office and one at a top tier/highest prestige name PE shop. I feel crazy for thinking of potentially turning down this PE offer. It is the peak of prestige, would totally alter the course of my career in terms of pay and general opportunities down the road. On the flip side, I do enjoy the current company as mentioned and think they will continue to grow and become a big name in the space. I also dont know if I want to start working absurd long hours (which was made clear) and have more stress while also not having some of the level of technical skills they would prefer so would be a step behind on that front and would be nervous about being assessed poorly in the early goings. But part of me thinks I have to take it because turning down this could be the opportunity of a lifetime. Middle ground could be go to the family office where work/life will be similar to what it is now, similar pay to PE, less stress and good people but not as much future upside compared to PE firm (essentially saying if Im gonna leave, lets go all the way and do PE option). Also hearing from others that my current place is getting good brand recognition in the market, maybe just wait out the bad pay for a few years here and then pivot to a higher level position. Any thoughts/advice appreciated.
I’d say try out the brand name PE shop for at least a year. Evaluate it for 6-9 months and if you hate the hours, stay a year, grab that bonus and lateral again to a family office.
Yea long hours are bad but there is nothing worse than wondering “what if” and living with regret after you’ve accepted the offer. Opportunities with family offices will always be there, this brand name PE offer may not
It's really hard to provide any real advice w/o any details on the family office - single or multi family office, AUM, what type of work are you doing (LP work, directs, both, publics vs. privates), deployment pace, investment mandate, etc.?
I’m in private equity so inherently biased, but if the PE fund is really as illustrious as you claim spending even 2 years there will open a lot of high-paying doors for the rest of your career. The family office might or might not depending on the family and size, these can literally go 1000 different ways.
There will be almost certainly be another tech startup that grants you a similar opportunity set, and if you don’t have equity today and are underpaid I’d say you’re on the absolute fucked end of the risk-reward scale in the current market.
Personally, I’d de-risk, get paid, and buff the resume - then revisit in a couple years when hopefully things are less volatile and you’re in a position to get real equity
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