What are some alternative career paths if you get blown out of PE (can't move up from asso to vp or to principal, etc.), or if you choose to go to an adjacent field for whatever reason (wlb, family, etc.)? What does comp/trajectory look like?
Hopefully still good comp and some barrier to entry, even if not as high as in PE. (So no, no FP&A, strategy, or corp dev please. Been there, done that, not going back. You spend 10+yrs to get to director level and get paid $300k. (Yes some directors at large/good companies make $400-$500k, but let's not kid ourselves it's difficult to land at those handful of companies, climb the ladder/beat out all the competition to land the single/a handful of strategy/fp&a/corp dev director roles.))
Things that come to mind are: secondaries, private credit, family office/LP/some asset allocation role, HF (maybe harder to move into/actually requires some chops), investor relations/fundraising at investment firms.
What else? And if you're an asso/sr asso/vp in PE, what level(s) would you be get place into if you go do any of these alternative paths? Any insights on comp/trajectory for these paths?
Based on the most helpful WSO content, here are some alternative career paths if you get blown out of PE or choose to move to an adjacent field for various reasons:
Alternative Career Paths:
Secondaries
Private Credit
Family Office/LP/Asset Allocation Role
Hedge Funds (HF)
Investor Relations/Fundraising at Investment Firms
Insights on Compensation and Trajectory:
These alternative paths provide various opportunities for those looking to transition out of PE while still maintaining a competitive compensation structure and career trajectory.
Sources: https://www.wallstreetoasis.com/forum/private-equity/why-do-people-choose-megafunds-over-mm?customgpt=1, Life after PE - the other road, Any career regrets after moving from PE to public markets?, Life after PE - the other road, Any PE people considered leaving to pursue search fund/entrepreneurship paths?
Most people move down market within PE. Or to one of the roles you mentioned (yep, commonly including your dreaded corp dev). There's not many magic non-PE jobs that pay like PE.
ASOs can usually go wherever, but it's hard to start moving into significantly different roles if you're at VP/principal level. Public markets or even private credit are both very different from vanilla PE, a VP or principal will have a tough time starting in a senior role there.
The successful ones size up exit options on an individual basis rather than looking at them as these broad buckets of the finance world. They also have the beginnings of a view around a longer term goal for themselves that they want to move toward.
For example I know someone who, while an associate at a MM PE shop, discovered a serious interest in biotech. That led down a path of learning more about the entire biotech ecosystem (which role-wise cuts across VC, HF, Corp Dev, MBA routes, startups etc etc) and ultimately he chose a corp dev role and then was launching a startup a few years later.
But in choosing the corp dev role, he turned down other roles most would consider to be higher paths than corp dev. Turned down VC offers and H/S MBA offer. So it was hardly "settling for corp dev". Furthest thing from it. It was more about a longer term goal of wanting to accomplish something huge and taking the first step in that direction.
Curious if you know the size of the business this person joined? Corp Dev has never seemed like the natural path if you want to gain experience to start a business but I can understand wanting to gain domain knowledge, especially in something as specialized as biotech
It was a company that is today worth a few billion, back then (5yrs ago) worth the lower end of that, maybe high 9 figures.
The thought process was basically, what ingredients do I need to be in XYZ place 10-20 years later. Need knowledge, connections, maybe some savings etc. Different jobs provide those in different amounts.
lol why do people give MS on sound advice that is both entrepreneurial and shows foresight?
Appreciate the kind words. What happens is, every few days someone checks my comments and throws MS at all of the recent ones, no matter what they are. No better way to pick up enemies than to tell the truth.
del
some directors get paid $400k or maybe even more, but a lot of it depends on which industry, company, geography you're in. Keep in mind that $400k in NYC/SF probably doesn't go as far as $300k in Kansas City even from just a COL (excluding purchasing a house) perspective.
If you can find a cushy family office seat that pays well that is what you are looking for. Problem is these places are all over the map and usually only have on of these two attributes. That said, I have several friends that have exited PE for these roles. You likely won’t get a massive carry check (if you find that unicorn of a role run, don’t walk), but I know several people in 7 figures with a great WLB. Money isn’t everything, and the people I know who have gone this route seem really happy with their choice. One other consideration is a lot of these roles are not in NYC of that is important to you. However, you get the benefit of a way lower cost of living.
that's helpful - do you know what level (in PE) they exited and what level (in family office) they got? also, how did they get these opportunities - is it completely reliant on headhunter outreach or is this something you can pull up on a map/list (of family offices) and do some outreach on your own?
Generally, I have seen a one level or so bump making the switch. Some hire headhunters, but others source entirely from their network. The endowment world is very visible (you can pull comp from 990s to see if you even want your bother). The family office world is mostly opaque. Very few places advertise their scale or even which family is the source of wealth.
I’m sure it’s just me, but the idea of helping some rich family further multiply their wealth, while at the same time knowing my upside or ladder to climb is forever capped, has never sit right with me. I bet people still get paid very well but the idea of not having ownership or carry as a senior or mid-level is something I’m not sure I’d do, even for the “chill” WLB. I’d rather just do Corp Dev at that point.
Odit ea culpa dolores et dicta quaerat voluptate. Architecto minima explicabo non. Ut numquam dolorem eius voluptates non ipsam iusto.
Repellat earum porro magnam natus iure. Sit eum id corporis sint explicabo iste. Eum ipsam cum nobis illum molestiae ipsam. Enim placeat voluptatem et explicabo mollitia est. Consequuntur qui harum architecto eum.
Ad aut quia enim molestiae atque explicabo quo. Beatae blanditiis ipsam ut et vero odit itaque suscipit. Et consequatur optio at placeat rem ut.
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...