Unhappy in PE but what is the alternative?
Topic says it all. Joined an analyst program full time after graduating and am currently in my second year at a mega fund. Love my team but the hours really really suck. I’m also really worried about this upcoming summer if I stay on as a first year associate because we don’t have that many people joining us and we’re already understaffed. Feels like we’re constantly chasing new deals even though we already have a bunch of portfolio companies. The comp is good (300k+ minimum first year associate) and there’s a career path for me and MBA sponsorship if I stay but I just don’t know if I’m cut out for this.
I’ve been looking at other options recently but growth equity / vc sounds grueling too (execution sounds similar to pe and sourcing sounds so difficult and stressful — I’m an introvert). Folks in growth equity / vc, am I wrong?
Maybe I’m just not cut out for finance? But biz ops roles seem to only want MBB folks.
Anyone in finance actually happy with their day to day and WLB and have advice? Or should I just stick it out for another two years?
I suggest you give a second look to growth-equity/VC because you have a good background for it and I think your view may be misguided.
First of all, PE has shit hours. This is common knowledge and people should probably factor it in their decision before going in. That said, people who come from PE are very well respected finance professionals so you do get something out of it. Now, VC may sound like PE-lite so you could think that the hours also suck but most people would estimate their hours at no more than 60. This makes sense because VC will be a lot more sourcing than executing, and then the execution is also simpler as you are dealing with smaller companies with simpler internal operating models.
Beyond that, as for being an introvert. You should not worry about that. You won’t be sourcing deals from hot girls. My exposure to VC has been mainly via many friends who have founded VC-backed start-ups and some even started VC funds themselves. And do you know what is true for all of them? They are nice people. They are nerds. ‘Sourcing’ just means staying up to date with the market to see what new ideas are getting executed and then sending an email to the founders about wanting to know more. Lucky for you, they want you to email them. They will also most often than not treat you well. And then for the more complex parts of establishing a relationship and executing a deal, usually the seniors will handle most of that and you’ll learn from them.
It’s not as bad as you think. Just my 2 cents.
Sounds like you enjoy the day-to-day of PE and it's just a matter of the hours? MFs have by far some of the worst WLB (typically even worse than banking IMO) and hours typically get better down market (especially if non-NYC funds), although it will never be a 9-5 gig. For context, I spent time at both a MF and MM shop and probably worked 2/3 the hours in the MM.
You're in a very good position - you already have nearly two years of MF PE experience and you should have pick of the litter in terms of exit ops, so wouldn't exclude yourself from anything (VC, GE, other direct PE, corp dev/strat, other pockets of finance like FoF or secondaries). Several of my former MF colleagues actually ended up in corp strat / biz ops types roles.
I think you can definitely get biz ops roles. Just need to be a little more proactive as these can be bespoke and won't have the same structured recruiting processes you're used to.
Agree with this, though will add to be mentally prepared for a pay cut. Hours will likely be better (though some startups can have pretty bad WLB too, gotta do your research), so that's the trade-off.
Agree. The reasons to do it need to be genuine interest and a better fit for you personally (more enjoyment out of career and life). Not because you're burnt out (you should run to something not away from something) and definitely not if comp is your top priority. Yes you can still do well long term off of equity, but it takes longer and requires real luck. Always going to be lower on a risk weighted basis than MF/UMM.
If you really hate sourcing, then PE is likely not for you (at least long term). You mention how the firm is always chasing new deals... guess who is doing that chasing? FWIW, pretty much every role becomes salesy at a senior enough level though.
I think you should think through some version of this flowchart: Do you want to stay in PE? If no, do you want to stay on the buyside? If no, do you want to stay within "high finance"? If no, do you want to do something else related in business (corp dev, operational finance/FP&A, etc.)? If no, do you want to do something else in business away from finance? If no, then maybe time to start thinking outside the box.
I'm guessing you want the pay but don't want the accompanying grind you currently have? To your gripes, PE firms always need to chase new deals even if they have portcos given, as you probably know, so much of the growth strategy is predicated on tuck-in acquisitions and even more fundamentally, every fund has a mandate to deploy capital as LPs don't want their money to stay stagnant and not at work.
Growth/VC faces the exact same predicament and your life will likely be just as busy, though it may be more focused on the sourcing aspect as an associate depending on where you work.
Family office family office family office family office. WLB is significantly better, typically pretty lean teams that operate efficiently, and solid comp (even if a bit of a dip from MF PE). Will still work on interesting stuff (sometimes more interesting than vanilla PE), and won't have to be as worried about sourcing because a lot of that is oftentimes done by the deal flow that just accrues to wealthy family office founders... should definitely explore it.
Do you work in a family office? If so do you have any info on how to find them/what recruiting process looks like?
I don't (plain vanilla PE) but have multiple friends who do and they're all pretty big fans of the experience. The recruiting experience tends to be aligned with their strategy - some are more oriented towards PE-style investing, some towards venture, some towards public portfolio management, etc. - so understanding their skew and the role is highly determinant. There's a few ways to find them, but would search LinkedIn for professionals with mentions of "family office" or "holdings" or "interests" in their current job/bio, would let HH know you're looking for family office roles (will have to explain why... can talk about purity and flexibility of mandate, no LPs to answer to, etc.), and would be mindful of where industry titans are centered (i.e. Houston or Dallas will likely be where family offices for ye old oil barons are located, etc.).
Second this, all my friends at family offices have great WLB. The recruiting process is all through HHs, LI or applying online is likely to be very small shops.
One thing to diligence very carefully is how much you like / how knowledgeable your direct managers(s) and above are. Lots of these places have a lot of nepotism hires so you can end up with some baboons running the place, which is a nightmare for someone knowledgeable and coming from MF PE.
What are people's thought on being a career LP? Seems the comp would be lower, but curious what mid/senior level people make
Mid 6-figures to mid 7-figures at the very top (CIO of a multi $B endowment/foundation).
Would you say similar number for FoFs or higher/lower?
Why not HF? Hours are usually ok - 60hour weeks on avg. More daily stress from Pnl but the comp is decent too.
You need to monitor and think about your coverage all the time no?
Yeah. It’s overwhelming for the first year or so but then you just get used to it or just stop caring. Also depends if at a pod or single manager. Chill at single manager.
Eh, I would’ve thought LBO type PE would suit introverts better. Growth Equity is definitely sourcing heavy and relies on interpersonal relationship building. The modeling isn’t that intensive at all.
Another entitled WASP
If you want good WLB Private Credit could be an option. Asso1 make 300k+ at the big players like MF credit arm or the pure play direct lending shops. Hours are significantly better than PE.
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