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
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