Working hours in PE -- Is it structurally getting worse?

Want to preface the upcoming pessimism by saying I'm lucky to be in my seat in MM PE and feel the experience has drastically improved my long-term career trajectory.

However taking an objective view at the state of the industry, are overall working hours in PE only getting worse due to reasons below?

  • Overarching point is generally more competition, particularly for quality assets
  • Increasing number of banked processes and a higher propensity to pre-empt and take the asset off the table because your competitor will if you don't go fast enough (FOMO)
  • PE / institutional capital moving further down the chain, thus more future auctions and sophisticated sellers optimizing for price
  • Higher valuations: harder or more creative underwrites needed, M&A in many situations feels like a necessity to make math work, more involvement on value creation post-deal, while increased leverage means less cushion for shocks and more fire drills
  • Rising amount of early diligence / thematic "pre-work", market research and mapping to prep for upcoming processes in addition to general schmoozing with sellers / management teams, all of which is becoming par for the course and undifferentiated
  • The glut of mid-levels that need to take as many deal at-bats as possible given vying for a seemingly lower number of possible Partner seats as many firms hit a maturity point in their pyramids

Curious if others have thought about this, agree or disagree from their experience in PE.

6 Comments
 

Honestly, I think it's always been like this and I'm 12+ yrs into my career.  Non-tech opportunities at any established fund has been not entrepreneurial (and super competitive) for 25+ years now.  Tech PE had a period in the early 2000's where a small group realized software businesses are great vehicles for PE, but that has long since corporatized and become ultra competitive as well.

 

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