Transition to Private Equity
I have been working in tech for the last 7 years: yahoo, Facebook, google. I am a PM. I want to transition to Private Equity, any advice ?
I am trying to understand if there is something more besides the what I can find on “google” on how to manage such transition. If there is a way at all
Get an MBA from Wharton. Even then it’s hard without PE experience pre-MBA
Ong, the big PE firms would still require that investment banking experience. Wharton or not
You have no shot, don't bother. You could possibly do VC / growth equity but not buyout with your background. Even then, it'll be an uphill battle as you didn't do MBB consulting before tech. Better question is why do you want to do PE? The job is brutal (I used to work in it pre-MBA) expect 2x the hours you are working today as a PM in big tech and marginally better comp if you don't make it Principal+ and that's not considering giving up your vacations (you are expected to work through them) and other sacrifices you will have to make
You'll have a shot but you'll have to ask yourself if it's worth it. Based on your YOE, I assume you're a L5 or L6 at Meta. You will have to spend a lot of effort to possibly get equivalent pay at a mid market firm but likely lower comp. Meanwhile you could progress quicker as a PM than you would in PE (due to lower experience and context there). There's a huge assumption here that you're joining PE for the pay because if it's NOT about the pay then there's many other roles out there that's more interesting. (This is coming from someone who's had PE offers, done VC, currently a PM at Meta, and sitting on a VC offer. Don't do it because you think it's fun, KNOW you want it, then go for it! I'm sitting on a VC offer because I don't know I truly want it)
Can I DM you? Just 4 months into my health tech job and already wishing i took my growth equity offer
Do you have an MBA?
Why? A lot more work for similar pay.
I started in M&A, then spent time in Blackstone PE (retail) before moving to a startup, a cycle at Netflix, then ending up at Meta. Two things: 1) Why? 2) You have no shot at any large cap PE shops. Maybe a family office that's highly specialized in an area you have expertise.
What’s a “good” enough reason for why? I want the clout & money and am not afraid of workplace abuse?
I'm guessing you're young? You very quickly realize that clout doesn't matter, and workplace abuse isn't "cool" - its just abuse. This isn't limited to PE, but is also true in other industries. Don't chase prestige, you'll only end up surrounded by other losers who prioritized that over everything else.
@OP care to enlighten here why you’re aiming for this switch? Clearly you have thought about it and seem to have your reasons.
I am Looking to transition out of tech and into equity investments. In a nutshell, when I am 40, I want to buy and sell companies,
@Meta you can do that as a private investor in the stock market too. Why try and get into high finance when you have no experience in the field? It’s obviously uphill from here for you.
I’m intrigued by everyone saying don’t. My good friend from school made $400K in their second year as a PE associate. Mind you, they were 26 years old. Once you get used to the hours and abuse, there’s a sure fire path to carry & making millions a year, no? Is it impossible to sustain the hours/abuse/drug use?
@financehoe what level are they now? How much do they make now?
They went to a smaller fund, still making $400K+
Is $1M guaranteed in tech though? I think if you plug away in PE for 10 years starting from junior, $1M is like the base case. The $400K didn’t include carry
Now that said, those 10 years will be shitty..
True - does sound like upside long term is greater in PE. Do most PE shops have sucky hours and culture though? Any data points on this?
Dont
Why