Going in-house early to a PE fund or staying in biglaw (1.5 years)
Posted: Mon Feb 12, 2018 12:22 am
Note: I've read a lot of topics on this, but it seems to me that most of the posts are choosing between a very stable F500 in house role and a big law role and not a more volatile middle-market fund. I wanted to get any opinions that may pop-up b/c of this difference.
I'm a MVP grad making a move from my current firm, a v5 in a non-NYC large market, and have received an offer from another v5 in the same non-NYC large market (dc/sf/chi) to do M&A work. I have also received an offer from a middle market private equity fund doing high-level term sheet and legal doc negotiations leveraging outside counsel. I would be joining a young fund which has roughly $4 billion AUM and is about five years old as one of three junior attorneys working directly under one of the co-founders (non-attorney). Pay is 130k (50 base / 50 bonus) with a raise to 165 in my second year as a I move up a title. I'd be 3-4 years away from carried interest.
I'm very interested in the in-house role as it is not your typical 9-5 compliance / reporting role. I'd be very involved in the M&A process including high-level negotiations (something I haven't seen in most in-house positions). There are a few things I am worried about. First, I'd be at the mercy of the co-founder as I am working directly with him on a small team. Second, the fund is doing very well, but it is young and doesn't have a long, established track record. This could mean that fund has a possibility of folding. Third, I'd be taking a significant short term pay cut, in that I'd lose out on roughly 200k (gross) in the next two or three years with the possibility of making all of that up and more if I get carried interest. Fourth, I was told that the fund is looking for one of the juniors to step into more of a GC role, but that, in my eyes, is not guaranteed.
Major Considerations
- Job Security - I think there is a recession coming. We are in the third longest bull market in the history of the United States and the bears will come calling soon.
- Long Term Potential - I think the fund has better long term potential than big law, but I am unsure. Even if I don't make up the money I would have made in big law I would be able to avoid going in house and doing boring compliance work for the rest of my life which is a fate that sounds worse than death. On the flip-side, I'd have a stronger skill-set to market myself if I stay in biglaw and somewhat more job security (I think). I'll be able to stay in my next position at least 2-3 years as it takes forever for them to fire someone in biglaw whereas I feel that funds can fire people at the drop of a hat.
- Lifestyle - While I do not think the PE fund would be a drastic improvement of lifestyle (I'll have more responsibility and will likely spend more time looking at docs), I will have better scheduling on nights and weekends when I send stuff to our outside counsel.
The most important thing to me is maintaining my lifestyle long term. I want to be sure I can make a decent salary and live a good life. However, I also want to have an interesting life and that does not mean getting paid 250K doing public reporting at a F500.
1. What do you guys think is the best option and why?
2. Does the PE job have too high of a risk profile given the size/age?
3. Is there anything I should be considering that I am not?
Any advice is much appreciated.
I'm a MVP grad making a move from my current firm, a v5 in a non-NYC large market, and have received an offer from another v5 in the same non-NYC large market (dc/sf/chi) to do M&A work. I have also received an offer from a middle market private equity fund doing high-level term sheet and legal doc negotiations leveraging outside counsel. I would be joining a young fund which has roughly $4 billion AUM and is about five years old as one of three junior attorneys working directly under one of the co-founders (non-attorney). Pay is 130k (50 base / 50 bonus) with a raise to 165 in my second year as a I move up a title. I'd be 3-4 years away from carried interest.
I'm very interested in the in-house role as it is not your typical 9-5 compliance / reporting role. I'd be very involved in the M&A process including high-level negotiations (something I haven't seen in most in-house positions). There are a few things I am worried about. First, I'd be at the mercy of the co-founder as I am working directly with him on a small team. Second, the fund is doing very well, but it is young and doesn't have a long, established track record. This could mean that fund has a possibility of folding. Third, I'd be taking a significant short term pay cut, in that I'd lose out on roughly 200k (gross) in the next two or three years with the possibility of making all of that up and more if I get carried interest. Fourth, I was told that the fund is looking for one of the juniors to step into more of a GC role, but that, in my eyes, is not guaranteed.
Major Considerations
- Job Security - I think there is a recession coming. We are in the third longest bull market in the history of the United States and the bears will come calling soon.
- Long Term Potential - I think the fund has better long term potential than big law, but I am unsure. Even if I don't make up the money I would have made in big law I would be able to avoid going in house and doing boring compliance work for the rest of my life which is a fate that sounds worse than death. On the flip-side, I'd have a stronger skill-set to market myself if I stay in biglaw and somewhat more job security (I think). I'll be able to stay in my next position at least 2-3 years as it takes forever for them to fire someone in biglaw whereas I feel that funds can fire people at the drop of a hat.
- Lifestyle - While I do not think the PE fund would be a drastic improvement of lifestyle (I'll have more responsibility and will likely spend more time looking at docs), I will have better scheduling on nights and weekends when I send stuff to our outside counsel.
The most important thing to me is maintaining my lifestyle long term. I want to be sure I can make a decent salary and live a good life. However, I also want to have an interesting life and that does not mean getting paid 250K doing public reporting at a F500.
1. What do you guys think is the best option and why?
2. Does the PE job have too high of a risk profile given the size/age?
3. Is there anything I should be considering that I am not?
Any advice is much appreciated.