Small vs large PE fund
Hi, I’m currently a VP at a MM ($2-3b AUM) fund that has been growing nicely. Joined the team at an early stage. Decent WLB. Received an offer to join a more established fund. Better cash comp and comparable carry number. Which path should I take? Thanks!
You’re a VP so probably know better than myself but man there are so many variables to this. If you like your current firm (assuming its doing well) and can see yourself making partner there then why leave?
If you like the people you work with and have good WLB and are part of a growing franchise then I would careful about changing. Does the larger PE fund offer you something that you don't think your current fund can offer you over time?
Thanks. Higher cash comp, more junior resources and upward mobility (not traditional 2-3 year VP program). Also a very reputable firm.
Personally, I value upwards mobility above all else given most here are still relatively early in the grand scheme of a career. So for me, I would break it down to where do you think you can make partner (and want to make partner at). And keep in mind, the other firm is trying to sell you, so perhaps take what they say with somewhat of a grain of salt. You may not like the people or WLB could be significantly worse. IMO, be very sure you want to jump across before you do it.
Maybe I'm a bit more jaded having lateraled and regretting it, but unless the comp/progression trajectory is a significant step-up, I would be wary of leaving a good seat. Especially if your current gig checks a lot boxes across WLB, culture, performance, etc.
Thanks guys. Very helpful. I’m leaning towards staying put... Decent step-up in cash comp and definitely a great platform with smart people, so was struggling with the decision...
Tell them they'll have to increase your comp and carry to x, and promise in your employment agreement you'll up for Principal / MD by x date. At worst they tell you no and you stay put which you would be happy to do. Said another way you should tell them they'll have to increase their offer to get you. Just don't be such a jerk about it to where it gets things off on the wrong foot. They shouldn't view it as that, but they might which would also be telling since they should want someone who is a bulldog in negotiating. In fact, maybe just tell them what they offered wouldn't entice you to leave and for them to get you they need to provide you their best offer (i.e., don't give them a number). Feels like you have the leverage here.
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