PE mid-levels who left the industry, where did you go next?
Hi everyone - I'm a VP in private equity, and I've been thinking about leaving private equity. I have a top undergrad + top MBA, and I've been working in private equity / investment banking since college. I'm fairly unhappy in my current role (for a variety of reasons - toxic boss among them), and have been looking for other opportunities since last fall. However, it's been difficult to find another role in private equity (in part due to the market, although it does seem to be picking up slightly), and I've started considering looking into other career paths as well. My industry experience is fairly generalist (generic software / services / industrials / FIG), which I think is a bit of a disadvantage in some ways - I don't have so much experience in any given industry that I have a big enough network from which I could find a high level role at an exciting company.
I know many people will recommend toughing it out in my current role until I can find another job in PE. I get that it is incredibly difficult to break back in to PE once you leave. I'm more trying to simply understand what "good" alternatives are. Search funds? Start ups? Business development? Corporate finance? Something else?
VPs who have left private equity, where did you go to, and are you happy with the decision? Why did you choose to do what you did? What happened to your comp and career progression? I know comp will be lower outside of private equity, but do you feel like you are learning enough and making progress in your career otherwise? More importantly, how did you identify the "right" job outside of private equity?
Based on the most helpful WSO content, individuals at the mid-level in private equity who decide to leave the industry often explore a variety of paths. Your situation, with a top undergrad and MBA plus a generalist background, provides a solid foundation for several alternative career routes. Here are some common transitions and considerations based on experiences shared:
Corporate Development: Many former PE professionals find corporate development roles appealing. These positions allow you to leverage your deal-making skills and industry knowledge in a corporate setting, often focusing on mergers, acquisitions, and strategic initiatives. Your generalist background could be advantageous here, as it allows for flexibility in industry focus.
Startups/Business Operations: Joining a fast-growing startup, especially in a biz ops or strategy role, is another path. This option can offer a dynamic work environment and the opportunity to have a direct impact on the business's growth. It's a chance to wear multiple hats and potentially grow with the company.
Search Funds: For those with an entrepreneurial spirit, leading a search fund can be an attractive option. This path involves raising capital to find, acquire, and manage a company. It's a route that offers the potential for significant financial and professional rewards but comes with its own set of challenges and risks.
Corporate Finance: Moving into a corporate finance role within a larger organization can offer a more stable work environment compared to PE. Roles in this area can vary widely, from financial planning and analysis (FP&A) to treasury functions, providing a broad scope for career development.
Consulting: Some professionals transition into consulting, particularly at firms known for their strategic and operational focus. This can be an appealing option if you enjoy problem-solving and working on a variety of projects across industries.
When considering these alternatives, it's crucial to assess not just the immediate role but also the long-term career trajectory and how it aligns with your personal and professional goals. Networking with individuals who have made similar transitions, leveraging alumni networks, and possibly working with a career coach can provide valuable insights and help identify the "right" job for you.
Regarding compensation and career progression, it's true that few paths will match PE compensation levels immediately. However, many find the trade-offs—such as improved work-life balance, greater job satisfaction, or the potential for equity in a growing business—worthwhile. Ultimately, the key is to find a role where you feel challenged, valued, and able to make a meaningful contribution, which can lead to long-term career fulfillment and success.
Sources: From Private Equity Associate to VP in Private Equity, Q&A: VP in Private Equity (Growth Equity + LBO)...Post-MBA...Formerly IB Analyst, From Private Equity Associate to VP in Private Equity, Life after 2 years in Private Equity, From Senior Associate to VP
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exits at this stage are much less structured so would love to hear the insight
I have not done it myself, but those I know who did it took management positions at portfolio companies: Head of M&A, Business Development, Chief of Staff. I can see why. They are going to be sought-after candidates and be able to take significant responsibility while still interfacing with a sponsor. I would suspect it must not be too hard to jump back into a fund after that too. Cannot comment on compensation though I am afraid. I hope they get included in the MIP!
Other asset classes (credit, GE, VC), portco or startups are the most common I've seen - to varying degrees of success/satisfaction - some love it, some wished they never left, some are trying to get back to PE...
Those that are happy with their decision to leave tend to have families though (based on my observation).
I would recommend you look at fully remote F500 roles outside of corp dev. Corporate Strategy (as fluffy as it is) is actually a great place to land if you need some time to recover from burnout, learn to re-establish boundaries with work, and pursue side projects you have a passion in. In corporate strategy, you’ll be able to see all parts of the business and have an easy transition if you want to go back to doing deals (corp dev) or want to do more finance (fp&a) or want to try and run a business (ops) or just want to continue thinking about theoretical ideas (corp strategy / some BD roles).
The most important thing if you go this route is to have goals that you will unapologetically commit to. One of mine was to commit to working out 6 days a week no matter what - I took a pay cut to be able to do that, so no matter how crazy shit may get at work, I always unapologetically take time to work out. Other goals I’ve seen folks take on is starting a side business (I did this) - the beauty of this is that your side biz is completely de-risked by your day job so you can do it as intensely or unintensely as you want to. I know a guy who left IB at the director level who started an interior design firm that is now his full time job and is doing really well. If you have geographic flexibility, another friend of mine committed to moving to SLC and would night ski every day after work and trained up to work on ski patrol as a part time thing since it was his dream when he was a kid. If you’re remote, you can travel aggressively for a year or two and be a digital nomad and explore what the world has to offer. Professionally, for me, I really admire the great people leaders in ops that I work with and I aspire to get into a role where I have the chance to lead a lot of people because I think that would be an amazing (and absurdly hard) life experience that will help me become the man I’ve always wanted to be. If you have a family, maybe you want to set the goal of being more involved in your wife or kids lives and committing fully towards never missing a family dinner or weekend event with them. You have to have something to work towards with the extra time you have, otherwise you’ll feel like you gave up on yourself by leaving.
I also committed to myself that I was never going to cancel plans because of work - I would work before or after those plans if I had to, but a big part of this transition for me was to establish boundaries and place value on my personal life again. Taking a paycut made me realize that I have to have strong boundaries with how much time I work and how many fucks I give, otherwise this career decision made no sense.
Comp wise - leaving at your level, if you go F500 corp strategy, I would expect $250K cash at the absolute low end. $300K-$350K cash + stock for a senior director / VP role in F500, feels like the right spot to aim for. It will be tough to find this and you will have to approach your search with the same mindset and commitment as looking for a lateral PE opportunity at your level. These jobs are very hard to get but you are qualified to do them if you are willing to put in the required effort.
Any thoughts on taking 3-6 months off as a sabbatical, then searching for these jobs with full effort? Obviously doing so while employed is best, but at the vp / principal level the nest egg should be plenty material to handle a year plus sabbatical.
Not OP but did the path you are describing - I think that is probably fine. Doesn’t make things easier but probably doesn’t make things that much harder given how much experience you have.
Are you at a large cap fund? If so, have you considered moving downstream?
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I have seen a few talented guys at that general level leave PE to join small-to-midsize PortCos as CFO or something else relatively senior (maybe just one notch outside of CEO/CFO/COO). A drop in cash comp for sure, but maybe not as much as you think, plus the carrot on the stick in noncash comp (incentive units/stock options/whatever else they want to call it). They seem happier. Not grinding as hard but still grinding enough.
A little bit of a different path than others are suggesting, but if you generally enjoy the investing process and learning about companies but are burnt out from the sheer volume of work/hours, frustrating leadership, etc. in buyout PE, it might be worth considering PE secondaries, co-investments, or even a fund investing role.
You will probably take a haircut on comp (particularly for fund investing) but you will make an amount closer to what you’re used to, which might be helpful if your alternative is a corp role. Hours and respect for your time will be better than PE/IB. The people in these roles tend to care more about WLB (imo/ymmv) so leadership styles tend to be a little less intense/micromanaging as well. If you don’t like that after a year or two, you can still go do CD/CS at a F500 company after.
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