MFPE Analyst to HF
Current analyst at a tech-focused MFPE shop (Silver Lake, Vista, Warburg SIG)
Wondering how typical exits look like to HF / is it limited given tech (and good or bad thing?). Nearly all of my work at the 1 year mark has been SaaS with a sprinkle of internet/media
Basically 1) how does one recruit to HFs out of these MFPE backgrounds, as I’ve heard these make it easier than out of IB because of the two year head start with at least some investment experience. And is it via HHs like in typical IB->PE or what?
and 2) would I be limited to just Dragoneer, Coatue, Altimeter, Light Street, and other tech-only HFs / Crossovers? Or is it eventually feasible to eventually recruit to more “high-fliers” like Lone Pine, Tiger Global, Pershing etc. I’m also aware that such HFs (especially the latter few) hire on an extremely need-basis which could be just 1 every 5 years or something, but was hoping anyone could give general guidelines given this information
Based on the most helpful WSO content, transitioning from a tech-focused MFPE shop to a hedge fund (HF) is indeed possible and not necessarily limited due to your tech background. Here's a breakdown of your queries:
1) Recruiting to HFs from MFPE backgrounds: - Your investment experience at a MFPE firm can indeed give you an edge over those coming straight from investment banking. - The process of recruitment can involve headhunters, similar to the IB to PE transition. Headhunters like CPI, Glocap, and HSP are known to play significant roles in the recruitment process. - Preparation is key. Be ready to walk through your deals and demonstrate your knowledge and experience.
2) Limitations to tech-only HFs: - While your tech background might make you a good fit for tech-focused HFs, it doesn't necessarily limit you to these funds only. - Your ability to transition to more diversified funds like Lone Pine, Tiger Global, Pershing, etc., would depend on your overall skill set, investment acumen, and the specific needs of these funds. - It's true that these high-flying HFs hire on a need-basis, but your tech background could be an advantage, given the increasing importance of tech in all sectors.
Remember, every transition depends on a multitude of factors, including but not limited to your skills, the market scenario, and the specific requirements of the hiring HF. It's always a good idea to network extensively, keep your skills sharp, and stay informed about the industry trends.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/advice-for-undergrads-going-into-ib-interested-in-pe?customgpt=1, https://www.wallstreetoasis.com/forums/qa-hf-out-of-undergrad?customgpt=1, From Private Equity Associate to VP in Private Equity, Basic Questions About PE Recruiting Answered, My Private Equity Recruiting Process
BUMP
You should reach out to firm alumni. They can make introductions and pull you into hiring processes.
Bump on this — is there nothing else you can do aside from above?
And no HH or intermediary like in analyst to PE associate recruiting?
Some firms may have a HH but most people are hired through networks/mutuals. Shouldn't be too hard to people on the phone / meet people for coffee with your background. I would just reach out to a few people at each firm after the New Year and go from there.
Go through HHs. Take the intro call and they will keep you up to date on what mandates they are working on. Basically every good fund I know hiring juniors uses HHs. As you become more senior network matters more.
You should be able to recruit for roles at HFs that are not tech-only.
Question 1 - HH will be the ones to be in touch with when a process kicks off, but as others mentioned you can network with alumni from your firm / school at the fund to be on their radar when they start hiring
Question 2 - believe the firms you mentioned (maybe less so for Tiger) typically hire from BX / KKR / Apollo, but I doubt they would pass you over for an interview if you get yourself in front of them. Silver Lake is likely more attractive than the others. Bigger challenge like you mentioned is the infrequent hiring
Why is Silver Lake considered a notch above Warburg SIG?
Ut explicabo earum id sint. Tempora sint quo sunt voluptas est assumenda inventore quis.
Et asperiores praesentium et ducimus aut rerum. Ea nemo quo libero. Quaerat quis fugiat rem qui aliquid. Blanditiis itaque id voluptas tempora. Et porro eius tenetur. Quo doloremque rerum deleniti nihil nihil suscipit. Magni ut quos dolor.
Quasi quis sapiente placeat unde omnis ut. Eum earum est cupiditate necessitatibus. Facilis numquam velit reprehenderit id nisi. Consectetur numquam omnis numquam quo accusantium voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...