Those who left PE for Corporate, why?

Based on the most helpful WSO content, here are some insights from individuals who left PE for corporate roles, including their reasons and compensation comparisons:

Reasons for Leaving PE:

1. Work-Life Balance (WLB):

   • Many cited the desire for better WLB as a key driver. PE often involves long hours, and transitioning to corporate roles can provide a more manageable schedule.

2. Desire for Meaningful Work:

   • Some felt disillusioned with the transactional nature of PE and wanted to contribute to something more impactful. For example, one individual mentioned wanting to be involved in the daily operations of a single organization rather than constantly moving from deal to deal.

3. Hands-On Operating Experience:

   • A common theme was the desire to truly understand how businesses operate and to be directly involved in solving operational challenges, such as reducing churn or improving customer acquisition costs.

4. Broader Responsibilities:

   • Corporate roles, especially in startups or strategic finance, often offer exposure to senior management, investors, and a variety of functions, rather than being siloed into specific tasks.

5. Company Culture and Strategy:

   • Some sought environments where finance played a strategic role in shaping the company's vision, rather than being purely transactional.

6. Compensation Structure:

   • While PE compensation is lucrative, the structure (e.g., carried interest heavily favoring senior management) and long-term payout timelines were deterrents for some.

Compensation Comparisons:

• Example 1:

  • Old Role: UMM PE Associate 2, $360k all-in.
  • New Role: Strategic finance at a healthcare company, $310k all-in.

• Example 2:

  • Old Role: PE Associate at a large family office.
  • New Role: Senior Finance Manager at a startup. While specific numbers weren't disclosed, the individual acknowledged taking a pay cut but was okay with it due to the non-monetary benefits (e.g., WLB, meaningful work).

• Example 3:

  • Old Role: PE professional with a focus on LP investing and co-investments.
  • New Role: FP&A hybrid role at a startup, involving fundraising, forecasting, and strategic initiatives. Again, while exact figures weren't shared, the broader responsibilities and potential equity upside were highlighted as key motivators.

If you're considering the move, weigh the trade-offs between compensation, lifestyle, and personal fulfillment. Many who transitioned found the non-monetary benefits outweighed the pay cut.

Sources: Q&A: Leaving PE After 2.5 Years for Corporate Finance, Q&A: Leaving PE After 2.5 Years for Corporate Finance, Q&A: Returning to PE After a Year and a Half at a Series C Startup