MM VP move to UMM/MF? Advice needed

If your in goodstanding and have path to promotion I would definitely stay - that’s what everyone is looking for. Cash comp should not be a driver - I think carry and long-term carry potential are all that matters here. There is a lot of risk switching to a spot where the promotion path is less clear. Would have to consider fundraising and scaling ability as well. In my opinion, there’s probably more to be made from a scaling fund then a mature one

I’m young so my advice means less…

But longevity is key, seems like you are happy excluding the cash comp. You also seem to have a clearer path to realizing the upside where you’re at now.

how big is your current fund? Comp doesn't sound too bad depending on size. Only thing that's a bummer is the half euro waterfall but otherwise sounds like a good seat.

There are several folks on here who are more qualified to answer this question, and I assume they will find it. So, my two cents:

It's really a question that you have to answer yourself. Is the cash-comp hedonic treadmill a key determinant of your self-worth? I realize that this might be a harsh way to pose the question, but I do think that is the question that you must answer. If your fund is raising reasonably well in a tough environment (and if the marks are a solid 1.5x instead of a vapor 1.5x), you are probably overvaluing W-2 vs. future K-1 income. Your WLB sounds market, having other teammates competent and willing to cover is a godsend, and I would not scoff at accumulated political capital. You'd be taking a heavy discount on this to move upmarket. I would not make this move.

A couple of questions that you probably want clarity on from various stakeholders before making the call:

1. Does your fund leave a portion of the carry pool unallocated for future promotions, or will you be locked into SVP1 allocation?
2. What is your cost base? NYC, multiple kids, private school, stay-at-home spouse would make it a tougher call than if you're single/dating.
3. Have you reviewed the publicly available performance data of new fund? How has the 2020-2022 vintage performed? (Side note, if you can find PA or MT pension docs, they tend to be pretty frank about manager performance).

You'll see that two of the three questions relate to the K-1 side of the equation, because that is the most effective way to build wealth (and, yes, realizing low single digit millions of dollars does begin that process-- even if you're comparing to folks with eight-figure allocations).

My best friend from MBA is at a well-performing MF. I adore him and our wives are close. He is able to spend time with his wife and to travel with us. On vacations, he could be on a call 12 time zones away, at four in the morning. He's cranking on pointless IC updates. He's also the smartest person I have ever met. I do not, under any circumstances, want to work his schedule. The marginal utility of having my own plane vs. a NetJets card just isn't that high to me.

I value flexibility and a known, collegial environment with political capital because I want to have a disproportionate say in what happens to my portion of the GP commit (and because taking vacations without worrying too much about work is perhaps the best thing I can do for myself, my family, and, yes, my firm). I would not make this trade (and would suggest that you look to find value in yourself unrelated to your W-2 income), but I have seen people do it before. If you do decide to move upmarket, I hope that you find contentment and that you are able to accumulate the same political capital in a larger, more complex organization. 

Wherever you have the most and realistic potential for upside is the place that is better.

It sounds like you enjoy your current place the most. You've done very well, built up a lot of goodwill in your own group, so why not just stay? It's not like you can bring over the chill hours and good culture you have in your current group to the next place, it could take years for you to re-create the ideal work environment that you already have and that anyone on this site would likely want to join

Not a VP yet but am i going crazy or is 45 hours for 70% of the year with 600k in cash comp not patently absurd/unheard of? shocked you are upset at that pay to WLB ratio, not even factoring in the fat carry you already have with another allocation imminent from a 40% larger fund?  You live in fantasy land if you are mad at this. 

I guess the question is would an extra $75k per year (post tax) for the next two years really meaningfully impact your life? You’re going to be extravagantly wealthy in 5-10 years either way but with much more risk at the MF side (I would not underestimate internal politics and fund performance issues at the some of these places). If nothing will change for you other than a few extra dollars in your bank account I don’t see why you’d make the move. 

Let me know where you work so I can interview for your current gig. At a MM fund ($3-5B) where I’m getting paid way less (with far less carry) and working way more.

Man, don't leave. You have a direct path to big carry dollars, good WLB for the industry, and your cash comp is fine. It's hard to put a price on the flexibility of only going to the office twice a week. The extra 100k or few 100k is not worth it if you burn out / get canned at another place if there's no path.

OP you have it so good with the WLB and vacation dynamic. I can’t tell if this is a troll so will give you the benefit of the doubt.

If this is real, you have an amazing role and upward trajectory. Maybe I’m missing something / your personal goals, but from what you’ve said I’m not sure why you wouldn’t stay

Seems like you're in a good place.  Are you happy?  Do you like the people you see and work with every day?  Do you think the firm respects you?  Do you think the new firm would obviously be better in any of these facets? 

I'm not in your position but don't let perfect be the enemy of (really) good.  Grass is not always greener (I f'd around and found this out the hard way once)..why risk it if you're happy?  You're making great money!

Unless you’re making 40% more including carry on a reasonably expected MOIC, i would sit tight.

If you like where you’re at and performance is decent, I for sure would not leave. The vast majority of places out there are fucked up in one or more way, culture, performance, fit, etc. Sounds like you have a pretty good gig.

I would also see where you can plot out a lucrative seat/path based on sector/sub-sector coverage, # partners, founders’ ages, shape of the organizational pyramid, etc.

If all that checks out, you are still the new guy and are adversely positioned vs your peers who have been there for much longer, are plugged into the politics, have garnered the goodwill and mentorship influential people, etc.

Being caught up in immediate term comp is very short sighted and is the wrong thing to be focused on. The power of this seat is the lifetime earnings, which is a function of economics, probability, AND duration. You have to probability weight the lifetime earnings based on a variety of factors which it doesn’t seem like you’re focused on.

Sounds like you have a very good setup currently. That will allow you to perform well and show up at your best. Let’s say you leave for a shop with way better comp and carry, but it’s an untenable place to work where you will wilt and die because of culture, politics, lifestyle, fund performance, an individual personality or 2 that you just got unlucky to be tied to. What are those higher economics worth in year 5 when your career is stalling out? The #2 or #3 guy at some random MM PE firm that is thriving and crushing it will make way more than an also ran with a fizzling career at a MF/UMM PE firm that was the wrong fit.

following

Jesus. Reading these posts on WSO reminds me how lucky I am to be on the trajectory that I am sometimes lmfao. Dude's unhappy about making 580K a year. Growing up my mom was happy if she crossed $30k and my dad $50k lol. Crazy

As for your question, I'm just an intern so I definitely don't have the experience that some of these other guys have, but I'd echo everyone else and stay at your current position.