VC or Asset Management coming out of Uni?
Currently finishing up my master's study in Europe and have two offers on the table after I graduate. I'm not sure which one I should take, especially since both seem very interesting but are in very different areas.
Corporate VC:
- Around 200M AUM with their new fund starting around the time I would be joining
- Fintech, Medtech focus
- VC arm of a financial company
- Shitty salary, 35k Euros gross
Asset manager:
- 100B+ AUM in total but the team I would be joining has 3.5B AUM
- ESG/Fundamental strategy
- Not sure about the salary but I would guess around 60-80k
Which option would you choose with a long-term view, out of uni?
I’d personally go with corporate VC. Besides base any bonus incentives like performance and getting a slice of the fund performance? Use the other offer to negotiate for a high base even like $55k and combine that with potential bonus and you could be pulling in the same at the AM. If they’re really low balling you fuck that. Both are decent choices just don’t get fucked pay wise for a dream.
No bonus incentives, unfortunately (at least on an analyst level). Not sure how to renegotiate my salary though as I have already signed the contract. Any suggestions?
In my opinion it should really depend on what you're more interested in. While it's certainly possible to lateral from one into the other early on, a couple of years into the job it'll become more difficult. Also in terms of comp, I've heard that corporate VCs have decent work environments but bonuses/carry is kind of limited since the money always flows up to the parent. So I'll guess (especially if you're being offered 35K gross) this is only a stepping stone for you and you'll be on the lookout for better paying VC jobs.
With regards to the AM, you'll have a more likely opportunity to move within the organization given that its a moderately large company in terms of AUM. Find out what you're passionate about during your time as an analyst and network within the firm, you might be able to move to a growth fund within the firm that focus on Fintechs/Biotech etc.
That being said, I'm generally not interested in what VC investing entails especially at the lower valuation rounds. I find fundamental analysis of cashflow generative businesses way more interesting than guessing how much money a start up may possibly generate 4 years down the line. So again, I suggest going with whatever feels more intelectually rewarding/challenging for you.
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