Pivoting to LMM PE IR
New to WSO and excitingly overwhelmed by the depth of thoughts/experiences/advice shared here. Hope not to disappoint… Here we go:
I have an unconventional career in finance: Started 7 years ago in IB, then moved to ER but both as a corporate access origination specialist (fancy term for client relations), so I did not gain experience as a finance analyst/associate, etc. Learned the core of modeling, valuation, and fin analysis by shadowing associates for over 4yrs (+ loads of wall street prep courses) and got really good at talking shop, relationship building, cap intro, fundraising… Spent last 3 years as an Investor Relations — both in-house (low comp) and as a consultant/buy-side doing placement type work, managing LP relationships, investor comms and reporting (scalable comp but zero benefits/perks) .
Recently completed my MBA in finance and want to work my way up from consulting/in-house to PE. Got a few offers (~200k on the base) in LMM PE IR but I feel like I’m leaving money on the table, in the sense that as a VP I could negotiate some carry, even if modest? My cup of tea is relationship building/managing, LP targeting/matching — not primarily interested in # crunching or analyses as much albeit can be flex if that’ll scale up comp.
Appreciate your thoughts/suggestions/ PE negotiation strategies.
Not likely to get carry as a midlevel in IR.. of course you can ask, but that usually comes at D/MD level. We're talking half a point to a few points here for seniors, so don't come in swinging too much with that.
Not sure what you mean by working your way up to PE - IR does not exit to investment seats, it's a solid role in PE land and sounds like your skillset is a match, but don't take that role expecting to lateral to a PE seat.
Also, LMM IR is a pretty difficult job given how hard the fundraising environment is right now - I would pick funds carefully, aim for a successful fund or look upwards to MM+ as it can be an impossible role trying to sell a shitty fund in this environment. Read earthwalker's post on this thread, particularly bullet #3, for how life is at a LMM. I have friends at MF IR and it's a cushy job (BX funds sell themselves...) but LMM is not really the same. All to say, diligence your fund carefully.
Appreciate the thoughts here. I meant work my way up from IR in consulting to IR in PE. Agree on PE IR being a solid role w no lateral move.
On the carry thou, please correct me if I’m wrong, if you have an active role in the fundraising process, actively convert LPs AND have a VP title can’t carry be baked into comp. (Similar to what earthwalker references on his post - I.e., Head of IR getting a slice of carry. In my case, I’m not talking same level of carry as a VP working on the deals, but a fraction of that.
VP and head of IR are pretty different titles. Assuming it's typical finance titles where VP is fairly junior (~5 yrs exp) I wouldn't expect any carry. Again, can always ask, maybe LMM is more flexible, but it's not like every other IR VP is getting carry
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