Quit my PE to join a Competitor
Guys - long time lurkers here. I'm working as an associate at an infra PE and has gotten offer from a director competitor in the same region which I'm sure I'll take. I have a few questions about resignation process, which would've been easy at a bank but in my case a bit more complex given (1) we are a 7-men team having worked closely for almost 3 years having built bonds, (2) the shop I'm joining is a direct competitor and has been more successful than us (in terms of fundraising an deal making) and my bosses in multiple occasions were bitter about it, (3) I have a big non-compete clause post my notice period which I'm hoping to ask them to waive (more reason to quit as graciously as possible).
Now my questions below:
1. Should I disclose the name of the new fund (assume not, but given the relationship I've had with the team, might be a bit awkward not to disclose it...)
2. How important it is to give my resignation in person vs over phone / zoom (esp. given I need to ask for waiver on my non-compete)? I have caught COVID on the day I received my employee contract and was not able to make it to the office since - understand it is indefinitely better to do it in person vs over phone, but I've been dragging on for a week (waiting to turn negative) while I just learned my current firm's policy is to stay home for an extra week after testing negative. Timing is of the essence here (the new fund promises to pay me 12-month bonus if I join by xxx date; also to not let the new fund worry).
3. Last but not least, what are some common gracious reasons for quitting in a situation like this? I think "the new fund has been better at fundraising" etc is a non-starter as that may bring out the spitefulness out of my boss. What I have in mind are things like "they have a lower target return than us and hence able to be competitive in processes", "their team is leaner and I would expect to take on more responsibility" (the new fund has bigger team overall but each deal team is smaller than us; I wouldn't wanna say their team is bigger as my boss would counter with stuff like we would be hiring next month etc). Do you guys see these as okay reasons?
Really appreciate any input / advice here. Thanks!
I wasn't in the exact same situation as you but I just lateraled to another fund and had to think through how to do it on the best terms. I was also on a small team. Here is what I did:
1) I set up an in-person meeting with the partner I was closest to at my firm. I made sure to not tell anyone else until I spoke to the partner.
2) I was very direct and to the point. Said I received an offer at another firm and that it was a better opportunity for me and that I intended to take it. I think it is good to be direct and honest, but also put your reasoning in such a way where you are not offending them. I said location, scale, and sector focus were big factors. Might be more difficult for you, but make sure not to say anything performance related….maybe volume of deals/deal size if applicable. I would also be careful about saying responsibility, since they could just say "we'll give you more responsibility going forward". I was asked the name of the new firm and I gave it to them….they are going to find out anyway. I would expect that if you have a non-compete, they are going to ask you for the name of the firm.
3) Make sure to thank them and make it more about the new opportunity and less about any weaknesses they have.
4) Be reasonable with exit dates and show that you care about your current projects. I wouldn't just give them a generic two week notice.
5) continue to be engaged and have a good attitude until you leave. For work that needs to be transferred, make sure to provide as much detail on what you have done to date and what still needs to be done.
6) make sure to talk to and thank each individual person on the team.
Turnover/taking new jobs is the nature of the industry and your seniors should understand. In all likelihood, they did the same thing at multiple points in their career. Show them the same courtesy that you would want if you were in there shoes, and you should be okay.
Thanks man - wasn't expecting to get such relatable response so quickly. My notice period by default is 2 months, and I think this is a reasonable timeframe for handover of any work etc. (but unfortunately not much room for me to offer up longer time as good gesture). Your point about speaking to Partner (vs in my mind speaking to my staffer) is a very good call! I was worried because my staffer is the kind of person who uses every leverage he has to the maximum, and he may abuse that non-compete clause (rarely seen at such longevity at my level). Some of my friends are suggesting using a different offer that is not in the same industry to resign - of course the team will find out later but the point is to get the release letter from the firm... not sure if this is a great idea...
I honestly can't offer too much on the non-compete as I didn't have to deal with that. It does make it a more difficult situation.
Your friends method seems to be risky. 1 - once they find out, they will know you were lying and you will have burned all bridges. Even worse, they could retaliate by telling your new firm what you did. In all likelihood, there is some personal connection to a person at your firm and the new firm. PE is a very small world, and the worst thing you can do is ruin your reputation. 2 - not a lawyer but are you sure what you're suggesting is legal and wouldn't have legal consequences?
Have other people left your firm? How did they do it?
Thanks man - agree it's far from kosher and I won't be taking that route.
I'm not based in New York and I'm the only associate at my office so no precedents for my office specifically. I've spoken with departures in NY office, and associates there don't have a non-compete in their employment contract. Mine is a bit different likely due to labor law in my region (APAC). It is a tough situation - besides making the points that (1) waiving non-compete helps me and doesn't hurt my current firm in any material way, and (2) I'm willing to sign up to additional confidentiality agreement, I don't see many other ways around it... (let me know if you can think of anything else)
In any case, thanks for your input!
So, it is "indefinitely" better to resign in person....?
You are a MORON. Why TF would any PE firm even go near you??? You are also a moron to look for nuances of how to finesse your resignation when you are bound by a no compete clause, and are still planning to bail and work for a DIRECT competitor across the street??? Get real. There is NO "gracious" way to do this. You will have enemies. But apparently that has not dawned on you yet!
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