F500 Corp Dev (Manager), Or PE Portco Corp Dev (Mid-Level)
Hey guys,
I left IB after 2 years and received the 2 offers below for corp dev:
Option 1: Manager-level position at a F500 international pubco (industrials). This company has been relatively acquisitive historically
Option 2: Senior Associate position at a PE-Backed portco (renewable energy). This company has experienced high growth over the last few years
The base comp for Option 1 is slightly higher (bonuses are the same), but Option 2 offers equity as part of the comp package.
Anyone have thoughts on which option is more appealing? Understand these roles are likely very different, with Option 2 having more potential upside (and risk) but more responsibility with a company that wants to be acquisitive. However, the Manager title and the stability of a large pubco (Option 1) is appealing
When deciding between a Manager-level position at a Fortune 500 company in the industrials sector and a Senior Associate position at a private equity-backed portfolio company in the renewable energy sector, there are several factors to consider based on insights from the WSO community. Here's a breakdown to help guide your decision:
Career Growth and Progression:
Risk vs. Stability:
Work Environment and Culture:
Industry Focus:
Ultimately, the decision should align with your long-term career goals, risk tolerance, and personal interests. If you're leaning towards rapid growth, potential for significant financial upside, and a dynamic work environment, the PE-Backed Portco might be the more appealing option. However, if stability, a structured career path, and working in a large, established company are more important to you, the F500 position could be a better fit.
Sources: BB VP to PE Associate, PE Senior Associate - What next?, Would you leave in this situation?, A Tale of 3 Offers: What should I consider?, To all Consultants considering PE
Hey OP, this is a very hard question to answer given you have omitted all comp data. You also provided no insight on hours, culture, etc., so I am not sure what you want us to compare. If you can provide the following I can try and give you an adequate response:
1. Comp (base, expected bonus, or bonus range, stock options, if applicable, and carry / outright equity in portfolio company for offer #2
2. Your sense of culture (what was the team like, what does the day to day look like, is each opportunity purely M&A, is it a blend of strategy and M&A, some IR perhaps? Etc.)
3. WLB (hours, commute, cities they are in, etc.)
There is not a single person who can give you a decent reply with the information you provided
Here are some more details on both options:
Option 1: 155 base, 15% bonus, no equity. Fully remote role with one other member on the team (VP). There is an international strategy team that I would work with on certain deals. Culture seems more laid back / traditional corporate type role, with a focus on traditional corporate acquisitions. This role is purely M& focused. Hours would typically be 50-60 hours per week
Option 2: 150 base, 20% bonus, equity (TBD on amount). Based in a HCOL city I live in (very quick commute). Team is more intense and focused on growth. Team is very intelligent with ex-bankers and ex-MBB. Would work with one VP (similar to above) and the CFO. This would be a blend of asset level acquisitions, small add-on acquisitions, budgeting, and organic growth. Sponsor plans to sell the company in ~2 years. Hours would typically be 60 hours per week
With the additional context, I would lean heavily toward option 1. In short my logic is as follows:
1. Better hours - yes it may be marginal, but a more laid back team often is more understanding of last minute PTO requests, logging off for dinner and the gym, and for doing weekend work on Sunday vs prime time hours on a Saturday. All in, this is could amount to a meaningful improvement in WLB. Contrary to what everyone on this site thinks, there are some very sweaty corp dev teams that work hours more similar to banking than many think. I have worked on teams where even senior members were working 65-75 hours a week regularly, working every Sunday for many hours and working through lunch and until midnight (sometimes not even on a live deal, just due to absurd amounts of work that fell onto their plates)
2. Experience: I would lean again toward option 1. Unless you are interest in asset acquisitions, the general nature of more conventional M&A would likely give you more optionality in later stages of your career. I'm not knowledgeable enough to provide more context, but that is my initial thought.
3. Flexibility: Fully remote honestly can suck sometimes, but I am a huge advocate of having autonomy over where you work. Additionally, should you choose, you can relocate anywhere in the US (assuming these are US offers) at any point in time while maintaining your role. I personally would kill for that.
4. Job Security: Don't discount the value of being part of a F500 Corp dev team, where if you're good, you will have the highest level of job security of anyone working in M&A. Also, your deal team stays the same long term, which can be good or bad, but with Option 2 you may be working for a different Portco or even be out of a role after 2 years. Yes, most PEs will find a new home for you if they like you, but you just don't have visibility into how the fund will value you.
5. Deal Team Quality: This is mostly anecdotal, but I have been much more impressed with F500 Corp Dev teams than I have with sponsor backed teams. Even at the MF level, I have worked with some absolute idiots who don't know the basics behind how to build a financial forecast. I would also recommend reading this thread to get more context on what working at PE portco is like
The larger bonus and equity % may work out, it may not. I joined a sponsor backed Corp Dev team and was promised material equity upon IPO, and six years later the fund never was able to exit and an IPO is sure as shit out of the cards. There are a lot of factors here you cannot control.
Option 2 also comes with what seems to be a more serious deal / strategy team, which is nice, but depends on their personalities. I would say my current deal / strat teams fit the same mold, but mine are all very down to earth, and lack the abrasive personalities many of the ex-MBB / ex-IB folks have.
Lastly, congrats on getting two solid offers during a difficult job market, both seem quality. This is definitely a harder call than is conventional, but I would personally opt for offer 1.
There is a lot of money in renewables right now and a lot of interesting fully remote opportunities that pay a ton of money. There is a massive shortage of finance talent in that sector and consequently you can get paid a lot. For me personally, I’d go with the renewables op because it’s a growing industry with a lot of upside to that career. I also think the idea of working on building renewables projects to fight climate change is way more personally fulfilling than selling widgets at a F500. It will be more work than the F500 gig though.
I’d only take the F500 gig if you’re passionate about that industry or if you want a more chill lifestyle in the near to medium term.
Thanks for your perspective, that's helpful. Renewables is very interesting, but the acquisitions would primarily be at the asset / project level. Wouldn't there be an advantage to doing large traditional corporate acquisitions at the F500? I'm thinking the F500 experience may be more transferrable / open more doors if I choose to switch companies.
Yeah renewables is def more niche for sure but there is an insane amount of demand for that skillset as a result - the industry is growing faster than there are finance people who know how to do the work (since it is very technical and unique vs other industries). Asst acquisitions in renewables is a very much in demand skillset. The skillset is very unique and the modeling is unique, so it’ll probably brand you as a renewables specialist long term (not a bad thing if you want to stay in the space).
The F500 role would leave more doors open but you’re also competing against a broader pool of candidates for exit ops. If you aren’t sold on renewables as a career, F500 is the safer option.
I am personally at a F500 and if I could go back I’d probably do renewables - growing industry with good comp and lots of interesting opportunities and plentiful remote work options. F500 is safe but upside in the medium and long term is lower imho.
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