Big 4 Internal Audit to Hedge Fund Staff Accountant - is it a step down?

The title pretty much says it all. I hope that posting this here isn't a major faux pas, or should be covered elsewhere, etc...

I've been at a Big4 firm for 2 years (first major job) in internal audit/risk and controls/etc. I'm seeing a lot of hedge fund staff accountant positions cropping up - are these a step down in terms of roles and responsibilities? Does the upward potential/future career path suck?

Outside of that, if anyone has any thoughts on where to go next (and when to go), that would be much appreciated. I'm interested in getting into finance/operations/strategy in industry, and away from accounting, and (if possible) a IB/PE role down the road (wishful thinking?). I have my CIA, and I'm dragging my feet on the CPA.

If you need any other relevant details to help me make an assessment, please ask. Thanks in advance.

-ACG

 
Best Response
maktec5:
^^^ = nail on the head. Best way is to get in through an accounting BO role, chill for 1- 2 yrs then try moving to MO/ FO

I thought it was extremely difficult to transition from BO to FO? I've been in a similar situation where I was recruited for staff accountant positions at a HF, but turned it down thinking another year or two at Big 4 is probably better.

 

Thanks for the comments. I just can't determine if a a staff BO role in a small hedge fund is a step down from my Big4 job where I'm about to start doing some more project management, managing other staff, etc. I guess I'll have to figure that out somehow.

 

It is very difficult, especially from accounting (versus trade settlement or whatever where you work with a trader/analyst).

That said, it's very difficult to move to front-office finance from Big 4 audit, as well, so you may still want to make the move. Controllers/CFOs at funds can make a ton of money and you'll work a lot less than as a Big 4 manager/senior manager trying to climb the ranks to partner.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

I really don't know much about audit, I'd see if you can find someone else to talk to on that. I was in valuation which is a whole different animal.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

Screw it, I'll post my question anyway. Maybe someone can help.

I'm trying to figure out how to get out of public accounting and into something that might eventually allow me to go FO.

Let me say that I'd like to identify whatever my best exit options are to get me out of accounting - even if they don't lead to FO, I know I don't want to be in audit/internal audit forever.

Quick background: - M.S. in Accounting and an MBA from a top 50 program (now, I've realized this has screwed me) - 2 years Big4 experience (mix of audit and internal audit)

The one thing that may be able to help me is that I spent nearly a year of my big4 experience at a PE firm...I'm hoping I can use this to my advantage.

Any thoughts on the best place to go from here? Thanks!

 
AChekhovGun:
Screw it, I'll post my question anyway. Maybe someone can help.

I'm trying to figure out how to get out of public accounting and into something that might eventually allow me to go FO.

Let me say that I'd like to identify whatever my best exit options are to get me out of accounting - even if they don't lead to FO, I know I don't want to be in audit/internal audit forever.

Quick background: - M.S. in Accounting and an MBA from a top 50 program (now, I've realized this has screwed me) - 2 years Big4 experience (mix of audit and internal audit)

The one thing that may be able to help me is that I spent nearly a year of my big4 experience at a PE firm...I'm hoping I can use this to my advantage.

Any thoughts on the best place to go from here? Thanks!

Transfer into your Big 4's transaction services group. I've seen quite a few PE analyst listings that are willing to consider candidates with TS experience. I've also read quite a few stories on WSO of analysts that came from Big 4 transaction services. I'm in audit right now, and one of my potential pathways to make a move to FO is to go into TS in a year or two.

 
AChekhovGun:
Screw it, I'll post my question anyway. Maybe someone can help.

I'm trying to figure out how to get out of public accounting and into something that might eventually allow me to go FO.

Let me say that I'd like to identify whatever my best exit options are to get me out of accounting - even if they don't lead to FO, I know I don't want to be in audit/internal audit forever.

Quick background: - M.S. in Accounting and an MBA from a top 50 program (now, I've realized this has screwed me) - 2 years Big4 experience (mix of audit and internal audit)

The one thing that may be able to help me is that I spent nearly a year of my big4 experience at a PE firm...I'm hoping I can use this to my advantage.

Any thoughts on the best place to go from here? Thanks!

Why don't you contact the PE firm? I'm sure you've made some connections there since you've worked with them for over a year? Just call up/email one of the guys, tell them a lil about yourself and your goals and see where that takes you.

What DB said is also correct. Big 4's have TAS/FAS groups that you can try to transfer over to and then make your move to a bigger IB.

Or, try to transfer over to their IB arm. I know KPMG and Deloitte are both recognized as good MM banks (espeically KPMG NYC Corpfin). Deloitte consulting is also a top tier S&O shop and a few years there will make you marketable for top MM banking/PE.

Also consider MSF or MBA to rebrand yourself.

Hope this helps.

 

Do NOT go into fund accounting. Absolutely horrible back office ops with garbage pay and no upward mobility. My cousin has been a hedge fund accountant for 7 years and still only makes like 60K and his work sounds terrible. I think if you want to stay in accounting, try to get a controller position at one of your clients.

-MBP
 

The problem with what you guys are saying is that most of the TAS transfers come from top performing people in audit, not internal audit. Big difference. It's a pretty big deal to be "tapped" into TAS. Worth a try though

 
hujja:
I got dinged after a second round for Valuations at my firm (a bit disappointed after all the work they made me do for and during the interview). Transitioning to TAS at a Big 4 is easier said than done unfortunately.

Moving into a BO role after Big 4 audit is a career ender. Of that, there is no doubt.

Did you get feedback on why you were dinged?

 
equity_player:
hujja:
I got dinged after a second round for Valuations at my firm (a bit disappointed after all the work they made me do for and during the interview). Transitioning to TAS at a Big 4 is easier said than done unfortunately.

Moving into a BO role after Big 4 audit is a career ender. Of that, there is no doubt.

Did you get feedback on why you were dinged?

I haven't asked for it yet but I will try to find out next week. That being said, I have a fair idea of why it fell through.

The second round interview required me to prepare a two page industry research report for a case scenario prior to the interview. On the day of, I had an hour long excel test weighted equally between preparing a DCF for the company in the case scenario and an advanced excel skills test.

Following that I had a 3 hour interview with people from manager to partner level.

The interviews themselves went fine although I felt I really didn't connect with one partner. Additionally, the DCF portion of the excel test was a bit of a mess for me.

 

From what I know on the topic, a good thing to do if you are in accounting is to go to a firm that specializes in hedge fund accounting. One firm I know that does this is Rothstein Kass, and from what I've heard is that accountants in their hedge fund segment are poached from the firm after several years there, and make a large salary in their new jobs (150k+) I could be totally wrong though, and the funds might hire only big 4.

 

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