Monkeys,
I did it. BB IB -> MM PE -> Promo to VP
Now, if I'm being completely honest with myself, I don't think I want to work in finance for much longer - certainly not long enough for it to be worth staying in PE.
I'm considering going back to banking for ~2 more years to maximize cash comp and then mail it in to start a family and get my life back.
I have put my head down the last 3 years and have been completely off this app. I don't really know how the IB job market and comp have been.
I'm convinced my VPs did like nothing when I was in banking and I could get away with like 80% effort (at least compared to the effort I've given the last 5 years)
1. Am I insane? And
2. How much can a VP 1 in IB reasonably expect to bring in these days? I would not even consider going somewhere that had deferred bonus schemes FWIW
Given the deals I've worked on in PE, my background is probably most attractive for an active MM M&A shop (Baird, Blair, HL, Stifel, etc etc)
TIA
Based on the most helpful WSO content, here’s what you need to know:
Are you insane for considering going back to IB?
Not at all. Many professionals make the switch back to IB from PE for various reasons, including maximizing cash compensation in the short term. Your reasoning—leveraging a couple more years in IB to secure financial stability before stepping away—makes sense, especially if you feel the workload in IB at the VP level is more manageable compared to your current PE role. However, keep in mind that while VP roles in IB may seem less intense than PE, the demands can vary significantly depending on the firm and deal flow.
How much can a VP 1 in IB reasonably expect to earn?
According to the latest WSO data (September 2023), the average total compensation for an Investment Banking Vice President is $392K. This includes base salary, bonus, and other compensation. If you’re targeting active MM M&A shops like Baird, Blair, HL, or Stifel, the comp might be slightly below BB levels but still competitive. Additionally, you’ve mentioned avoiding deferred bonus schemes, so ensure you thoroughly vet the compensation structure at any firm you consider.
Additional considerations:
If you’re confident in your ability to secure a VP role at a solid MM shop and the comp aligns with your goals, this could be a smart move to maximize earnings before transitioning out of finance. Good luck, and don’t forget to prioritize your personal goals and well-being!
Sources: All-in VP Comp, Q&A: VP in Restructuring, Career in Investment Banking, 2018 Investment Banking Report: 8 Trends in the Industry, Tell me how to be a Great VP
Not insane at all — sounds like classic “maximize cash, minimize headache” mode. A lot of people do a short IB stint late in their careers for exactly that reason. For a VP1 at a decent MM shop with your PE + BB IB background, you’re probably looking at $300–500k all-in, maybe a bit more if the deal flow is hot and the bonus isn’t deferred. Active MM M&A shops love someone who’s done real PE work because you hit the ground running — and yes, you can absolutely dial effort down a bit while still looking like a rockstar.
NOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
What kind of PE bucket shop do you work at where you don’t even make baking cash comp?
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