Thoughts on Working at Portfolio Companies?
Curious about experiences transitioning to portfolio company roles after PE.
- Comp seems comparable, decent bonuses and sweat equity instead of carry
- WLB seems better overall, can see myself doing this for the next 10 - 20 years
How does one make the jump from PE to those senior C-suite roles? Would love to hear thoughts and advice from anyone who has made the transition.
Thanks, chimps!
Pros:
-WLB definitely better
-Good exposure to M&A assume you’re doing a roll up
-Have equity in the business likely via an equity incentive plan
Cons:
-Comp is definitely not comparable to a traditional PE seat
-you could love your sponsor but if you get sold you might hate the next one
-hard to jump up to PE from portco level
Fair shout.
Additional context on comp:
1. From a risk adjusted perspective: most associates are unlikely to get those carry figures
2. I’m happy retiring with a couple million in the bank. Getting into the tens of millions is something I don’t seek.
Should be comparing to PE VP at that point assuming you jump to portco post-assoc. stint. From a risk adjusted standpoint you likely have less carry and 100% concentrated to 1 company vs. fund-wide diversification. Cash comp likely >$100k lower as well.
Not saying it's not a worthwhile trade from WLB and overall happiness standpoints, but think you're underweighting the difference in comp.
portcos yuck
Ullam laudantium nobis ipsam modi et. Reprehenderit porro ut rerum consequatur hic quis fugit.
Provident animi sit recusandae enim veniam est veniam omnis. Voluptas inventore et molestiae unde ut. Quas beatae alias incidunt impedit nostrum repellat voluptatum quas. Animi ut et aut accusamus architecto. Tempore cumque eveniet tempore omnis totam quo occaecati. Illo ex suscipit quia quia delectus animi. Enim quidem laboriosam aut inventore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...