Should I stay in private equity or move over to credit trading?
Tbh I’m kind of bored and lacking intellectual stimulation doing MMPE…. Feel like trading/market oriented opportunities and particularly event driven / distressed is a sweet place to play in and I love the markets.
Guess my question is, will I be punching myself when all the PE bros gawk at my lack of VP title at “an established PE fund” to go sling bonds with the cowboys?
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No, the best advice I ever got was to optimize for the current year. You need to think long term, but as long as you are directionally on the same path and learning do what you want to do. But also just try to live in the moment and find enjoyment in what you are doing. Take a step back, take a day off, and soak in the opportunity you currently have before you cement your decision. A more complete thought below:
Pros of staying in a middle market private equity associate role:
Exposure to a wide range of industries and companies
Opportunity to work with more experienced professionals: Typically a bit fatter than a credit team
Opportunity to work on various parts of transactions (some of which can be complex): Private equity deals can be complex and involve a variety of legal, financial, and operational considerations. Working on these types of transactions can be intellectually challenging and provide opportunities for learning and growth.
Potential for long-term career growth
Exposure to a range of career path
Cons of staying in a middle market private equity associate role:
Long hours and demanding work environment.
Limited opportunities for personal interaction
Limited visibility and recognition
Limited exposure to financial markets
Limited opportunities for short-term financial rewards
Limited flexibility
Potential for high levels of uncertainty: Leading to high levels of uncertainty and stress.
Pros of moving to a credit trading role at a hedge fund:
Exposure to financial markets
Opportunity to find arbitrage: Intellectual opportunity to take advantage of price discrepancies between different securities or markets, which can provide a sense of intellectual challenge and the potential for significant financial rewards.
Event-driven work: Event driven nature always adds something new such as company earnings, mergers and acquisitions, and economic data releases, which can make the work more exciting and dynamic.
Potential for strong financial rewards - typically greater than at PE firm when you are more junior
This is a great answer, thank you.
What exactly did you mean by “optimizing for the current year?”
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