Why do so many PE professionals transition from direct investing to LP roles?
Saw a lot on this forum that direct PE investing has higher comp potential and the work is more interesting, but I saw a lot of people make the transition from GP to LP.
Because at a certain point they realized that the incremental money they get at a GP is not worth the incremental work and stress. LPs/secondaries/coinvest still pay better than 99% of jobs out there, but respect WLB way more. Life and career isn’t always about maximizing money, and at a certain point individuals will make the judgment call for themselves on what the right balance is.
Thanks. This is very helpful. Is being a GP actually that stressful? I have only interned at a LMM shop and the hours and workload are extremely chill. Maybe it's just not the norm in the industry.
Lol. Read this forum lately…
Et cumque voluptate aperiam voluptates. Perferendis neque illo odit laborum reprehenderit reiciendis. Nostrum itaque illo nisi labore. Ut qui et atque aut reiciendis sed in. Dicta voluptatibus est occaecati. Et omnis ad voluptates iste iste sed.
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...