What are key differences in terms of nature of work and exit opportunities between PE ops and deals teams? I’m trying to get a sense where I would be happier. How would you evaluate who is a good fit for one vs the other? (Context: joining MBB but would like to pivot into roles with more ownership. Trying to make sense of which part of PE is the best fit)

likehelpful
Posting as :
works at
You are currently posting as works at

Do you like investing + make crazy money + work 60-80 hour weeks? If yes PE Deals.

Do you like operating and want to be CEO + make slightly less crazy money + work 55-65 hour weeks? If yes, PE ops.

likesmarthelpful

CEOs of very successful companies sometimes make more money than some PE partners*

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If your goal is “ownership” the real answer is neither. Go to a company in an operating role.

Deal teams tend to swarm problems rather than have clear R&R and truly own company decisions. PE Ops teams still at the end of day are in an “influence” relationship with companies and don’t truly own or drive day to day decisions.

likehelpful

Fund founders definitely, that’s the same as being a start up founder of a successful company (case in point the 32B that TB just raised)

I would imagine mediocre operators would be at the lowest? The “smart” operators are less than 10% of the people that I see

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Also - on the PE Ops side, you don’t really reliably hit “crazy money” (say $300K+) until you hit VP and higher

like

Yes includes annualized carry. Cash portion a little over $400k, Carry very volatile these days so conservatively valuing at $75-150K but that could end up a bit higher. Doesn’t include potential coinvest returns

What is typical comp for associates broken down by fund size?

like

These would be the same in most northeast cities and California too. I would bet it applies to other cities as well. Never heard of a PE firm in not a major city. Additionally those outside of NE and Cali are usually in the <1B fund size. Not sure how it compares internationally.

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