Want to be rich long term, depressed and miserable in PE. Hope in Corporate?
Is my dream of owning a greenwich waterfront dead if I rage quit out of PE right now? Currently a senior associate at a UMM that treats its employees worse than prisioners. I need out ASAP. If I get the VP promote I will have to grind for 5-7 years, VPs at my firm work 8AM to 11pm-12am every night and almost every weekend.
Looking at a very very strong and lucky corporate offer of ~$360k all in (non-tech, sponsor owned). Not really interested in finding a chiller buyout firm, they all seem shit and evil.
Only have ~$250k to my bank account and currently 26 (2 years IB, 2 years PE). I know the dream of being fuck you rich is dead, but do I have a decent shot at normal rich? Also akowledge this post is pretty retarded.
360k all-in is sick. Take it
Thanks friend , I probably will, my golden ticket out of this god forsaken life. Hopefully my agressive stock investments can carry my networth when taking this paycut
what are you invested in?
Bro 360K all in wtf?!?!
That’s insane what role is this? Should def take it
$360k is not that much you’ll regret leaving
$360k can’t be that much of a cut from 3rd year in PE, unless I’m missing something. Take it and don’t look back, after tax the difference is minimal and you don’t see yourself staying in PE long term
3rd year in PE you should be clearing $500k easy
Respectfully wtf are you talking about little bro
That’s about right for MM and UMM PE.
Take it. If you're serious about your dream find roommates or live in a very cheap studio and live cheaply to save up like 70-80% of your paycheck lol.
$350k all-in is only a lot of money to 26 year olds and people living in Winston-Salem North Carolina.
The math isn’t what you’ll make now in either seat, its the trajectory.
Baseline PE comp trajectory will put you squarely into the multi-million per year within 10-12 years. Baseline in corp will put you at 400-700k within 10-12 years.
The difference between $700k and $2.2m a year is $375k after tax or $1.1-1.5m. Meaning you’ll be banking $500-750k a year in one case and $50-100k in the other.
In neither case however will you be buying a Greenwich waterfront house ($10-20m)… unless you’re an absolute assassin and glutton for pain and very lucky. Ie you kill it in PE.
The real math is that you hate your life and you’ll likely flame out before getting to the baseline PE path. Maybe corporate is the best path for you. But you should dramatically reset my wealth expectations.
The issue with your logic is that the multi-million PE outcome assumes successful funds & carry payouts, which is not necessarily going to happen in the next 10-15 years as the industry continues to mature, returns compress, and the majority of these undifferentiated JAMMBO firms won’t provide that path
Yep, all true.
The consensus might be wrong, so might as well be contrarian and stay in the path and see how it goes. The world, monetary policy, and institutions (including LPs) are not static, they do change, so looking beyond +10 years is a bit too far, don't you think? If you are so confident in your forecasts, you should be in HF. Otherwise, I'm just reading daily, over and over, the echo of the "PE's downfall" crowds.
I’m not sure if even becoming comfortably wealthy through private equity or investment banking is as achievable as it once was, unless you’re a top-performing Managing Director at an elite boutique. I was told the median MD at my firm’s investment banking division (bulge bracket) in New York earns around $1.25 million in total compensation, which seems relatively modest considering it often takes 15+ years to reach that level and can come with significant personal sacrifices. Meanwhile, a Vice President in the private wealth management division of my bank may earn more by building a strong client base and developing excellent sales and relationship management skills, while typically working 50–60 hours per week.
wat r u talkig about
This sounds sick and I’d take the offer. Out of interest, how did you recruit for that role (portco, headhunters, cold applications on job portals / company career page)?
Your savings are mediocre for how far along you are in PE. Staying in PE won’t solve your problems if you keep spending at a high rate. You can get rich in corporate if you save and if you invest. But right now you have a burn problem more than an income problem.
To answer your question - take your corporate role and cut back (get a cheaper apartment). Marry someone with basic common sense about personal finance. If you can save and invest a large amount at a young age, having absurd wealth by retirement is all but guaranteed.
My guy...I think your dream is dead if you STAY in PE
Who are buying these houses then just C-suites at F500s and PE fund and HF literal founders and that’s it?
Those plus people with family money, non-finance entrepreneurs, foreign oligarchs, etc.
$10-20 yes but what you guys who are younger don’t understand is that comp at a more senior level is more volatile. There are years where my friends in PE got huge carry checks, and my comp is even more volatile. Sometimes you just need 2-3 good years before you are set with $5-10 liquid and with some compounding you can take out a securities backed credit line, get a mortgage and easily afford a $3-7 million property in your early to mid 30s at the best/highest paying firms, with strong individual performance. At my firm that’s quite lean, that’s what I see.
And it isn’t just having good years with work investments. It’s also personal investments. So many people are in spcx or Anthropic or something and have 5-10x’d in 2 years a $300-500K investment. There is even a guy I know who has 5x’d a bar he co owns in nolita in 3 years. And then just normal compounding of liquid investments - nasdaq has returned high teens annualized for a while. Really doesn’t take much.
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