I’ve always been told that every time you switch your job, you lose a chip... so just want to get some input from the forum... currently a few months into a fund where one of the key dealmakers decided to not raise a new fund, and hence, most responsibilities will be related to managing existing asset in the next few years. Would you leave if you are in this situation? Thanks.

Both answers above are long and well thought out - though its really a very simple decision: Leave. You joined a PE firm to gain invest experience and that is now out the door. Full stop. That said, I would not make rash decisions. Certainly don't leave without a job and don't take a material step down in brand. This market is brutal so you will likely have to be patient. I'd probably start reaching out to HHs again or your network. Don't reach out to the HH that placed you as they likely have a claw back provision.

I agree with jumping, right now is the time to be laying the groundwork for your transition. Start emailing individuals at funds you’d have an interest in about the possibility of having an informational interview. The nice thing is if you have a particular goal in mind you can work towards it. Assuming you have the bandwidth spend a couple of hours looking at shops that fit your ideal criteria: AUM, investment approach, sector, geography and find people who are likely to be receptive (school alumni, shared prior employer).

Would you leave in this situation?

PE

VP in PE - LBOs

3y

Most Helpful

In most cases, yes, I would try to leave. You are going to find two issues (1) the best senior people at the firm will leave for greener pastures, so it will be difficult to find a good mentor and (2) your resume, and skillset, will be behind your peers. (1) should matter a lot to you early in your career, (2) may only matter if you want to be in PE / investing long term, but frankly with no new investment action you won't have the experience to know if its something you want to do long term. I always tell associates the most important things they can do with their two years is get in reps, and see how senior investors think, work and negotiate.

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Authored by: Certified Private Equity Professional - PrincipalCertified Private Equity Pro

OhhThatsGood

PE

3y

I've been in almost an identical situation. The answer depends, like the above poster said, on what your end goal (or even mid-term goal is). For me, I knew I wanted to stay in private equity long term, and so the prospect of finishing out half of my pre-MBA associate role as a portfolio management guy was definitely not the right move. You will be behind your peers, and if anything, after next year, you will be more expensive / under-experienced for your tenure and find it difficult to compete for experienced lateral associate roles.

On the other hand, if you're more open about your future and maybe planned on exploring work with a portco, or startup, or corporate life anyways, then staying might not be a bad option. Assuming they're honoring your pay, you could be looking at PE associate-level pay with reduced hours, stress, and responsibility (while focusing on non-investing aspects of the PE job and dealing with people you've already built credibility with).

Go with your gut here. If the only thing keeping you around is that you're scared of "losing your chip" and having to rebuild credibility if you move, just know that if your end game is being an investment professional, you obviously can't stay here forever anyways and it will be much, much harder to get your foot back in the door, and re-build / explain your story the longer you are there.

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