Slogging through the PE/VC trenches
So I've been working for a few years now at a private fund that's well-regarded. The base comp is generous for what I do. Carry is exceedingly modest, but could be life-changing if the fund does well.
My performance is always rated as stellar in my reviews (the bar is not that high in my vertical tbh), and I have a solid relationship with leadership. My role has a lot of security/stability.
But at the same time, I've reached this weird plateau. I feel like I'm just waiting around to vest another couple of years in my first fund, which is already fully deployed but won't see distributions for probably another 3-5 years. I'm also helping deploy a new fund that won't materialize returns for 7-10 years.
I should be excited that I've made it this far and that there's plenty of work left to be done. But instead, I just feel a crushing sense of ennui as I stare down the barrel of years of seemingly endless waiting: waiting to vest, waiting for distributions, waiting to hear about co-invest, waiting to hear how much carry I have in the next fund. My motivation vanishes when I realize I'll still be making the same income 3 years from now, with nothing to show for it except paper gains. I might be set by the time I'm 40, but until then the long timeframes in private markets just make the day-to-day experience feel like an absolute slog.
I try to stay motivated by working toward the milestones: another year vested, another year closer to distros, etc. I enjoy tracking how the portfolio is doing and love to see good years and big exits, but it's hard knowing I won't see any real benefit until I'm in my mid-30s. I feel like I'm missing out when I look around at opportunities to make 50-100% more per year upfront in equity working at a company. A part of me would rather just put that extra cash toward trading my own book and leave the fund world behind.
I guess I'm just looking for some words of inspiration from those in PE/VC who've been in my shoes. Maybe something like: "Suck it up and be patient. 5 years from now, when you're fully vested in 2 different funds and have gotten most of your distributions from the earlier one, you'll be so glad you stayed."
For those who have hit the same wall, how did you cope? Is optimizing for co-invest the promised land? Am I better off joining a startup/public company/hedge fund where I can see more consistent carry/equity-based income year-to-year instead of waiting indefinitely for distros that are out of my control? Have I just become a spoiled, entitled bitch who obviously should've known all this before he joined a private market fund?
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