Those of you in the PE industry, what are the chances of coming from a Corporate Development role and landing at a MM fund? Also what do you think of current industry conditions, there is a record amount of debt on companies balance sheets - possible bubble in 4-7 years? Or an opportunity in the distressed and restructuring spaces?
$75 trillion in corporate debt ( CNBC , can't post link because I'm a new user)
Corp dev to PE is difficult. Much different investment perspectives.
Restructuring & distressed investing is a bit of a specialized space. If you haven't worked a 363 sale, a debt restructuring, or evaluated sort of distressed credit, it is going to be a difficult transition.
Where there's a will there is a way! What about plain vanilla mature LBO funds- are someone's chances?
Very difficult. Not an ideal background for PE. Don't see it often (I haven't really seen it, period).
Really? I've seen on this forum that Corporate Development roles have a decent chance to lateral (at a smaller MM shop). At your firm, do you recruit IB or more consulting types? Thoughts on people coming from AM?
My firm hires from IB mostly. Take a look at Linkedin profiles of guys at legit PE firms - I think it's pretty rare to see someone from corp dev. I think you may be right, perhaps some make it to lower MM firms. Definitely still an uphill climb.
I've seen it done, albeit at small shops (like ~$200mm funds). If you don't have an IB background prior to Corp Dev or if you're trying to move into a different industry, it will be tougher - i.e. it wouldn't be as difficult to do if you worked in O&G IB, then went to work in O&G Corp Dev, and then moved into O&G lower MM PE.
I would agree. +1 sb
Any other opinions?
To echo MMBanker14, it does happen moreso in the lower MM space. Especially helps if you have an IBD background and coming from an Corp. Dev. spot where there is still a good amount of deal flow.
I agree with the above posters that few make the move from corp dev to PE, but I disagree with the notion that corp dev does not have the background for PE or that that is the reason you rarely see the move made. The reason you rarely see anyone moving from corp dev to PE is because most people in corp dev came from IB and consciously chose corp dev over PE. I chose corp dev for the more strategic focus and better hours knowing that I would take a paycut. If all else remains constant, there would be no reason to make the move to PE.
I agree. +1. What if that person had an internship at a BB AM firm too?
Also anyone ever heard of Chartwell Financial Advisory?
no IB/HF experience, is it possible to get into PE from Corp Dev after age 30? (Originally Posted: 04/27/2016)
Hi I am in fact evaluating an offer of in house FIG M&A Corp Development. I am age 30, been in the industry and consulting and thus offered this Corp Development role. The deal volume will be huge and I am thinking if I would be able to pitch myself for PE after 2-3 years in Corp Dev.
Should I do a part-time MBA along the way/CFA/CAIA whatever, will it help?
Is it too old to break into PE say age 33?
Interested as well. Is your offer at Manager level? Is it insurance industry, banking or Asset Management industry?
Yes the offer is at manager level though I was aiming for Senior Manager given that I have 8years experience in the industry+consulting. It is a lateral move for now (pay and title).
I am an actuary. The company is a top 10 insurer by market cap. I did a couple due diligence projects in the past 12 months and hence landed the position. The odd was slim but my niche background and networking helped.
I just want to see what would be my exit opportunities 2-3 years down the road. At age 32-33. Don't think IB is an option as too old and no MBA. Am thinking if PE would be an option.
Deal volume and experience would be huge as the company is expanding fast and i report to the department head directly. (No senior manager). I want the position for complete deal experience , not just the DD.
Promise to do an AMA session after I landed the job and worked on a few deals.
This is not the profile a PE firm is looking for. Chances are VERYYYY slim.
If he's working on multiple deals in this space from a principal investment standpoint(investment thesis+modelling+due diligence), you don't think he'll get some looks from mm PE firms that specialize in his nitche?
I think it's going to be tough, but I do see a path. FinTech is extremely popular VC and GE sector. If you were to source and close some deals in the FinTech space, there could be potential to get into a GE fund. Many guys in the GE space are ex-operators, so you operational experience would be a strength. Best of luck!
That's my hope as well. Currently corp dev at a fintech with decent exposure to VC deals.
Update - the offer just got upgraded to a Senior Manager role as the managers in the team are less experienced than I am so HR agreed to up the title. Comp has not changed though.
On the other side I am in serious discussion with a non-BB ER role which offers higher salary and better culture. However I feel that the ER industry is going downhill with trading commission shrinking and more regulation regarding ER revenue. The current ER business model doesn't seems to be sustainable.
switch from corp dev to PE or HF? (Originally Posted: 04/26/2013)
Possible or not?
Possible but depends on background.
It's going to be very difficult, I think, though I have no first hand knowledge of this. With a top MBA, that changes things.
Possible. But rarely to megafunds unless you are coming in from the likes of Google.
I can confirm this is possible if you're at Disney corp strat
is this pre-mba or post mba?
Pre-MBA in my case. I'm at a MM PE shop that is prestigious within the region.
did you get the gig through a headhunter or networking?
Not me, this was a move made by a colleague. I believe it was through both (although I think networking played a bigger role).
Keep in mind, this colleague had VERY extensive M&A and business development experience during the corporate development stint and was at a top 50 Global 500.
Corp Dev to MM PE is fairly common. You would have a decent chance, particularly if you had experienced w/leveraged transactions (LBOs, recaps, etc.). Never heard of Corp Dev to HF. Skill set is quite different outside of comps/valuation.
wouldnt cor dev deal more with m&a while treasury would deal more with recaps etc?
Corp. Dev. to PE or Mgmt Consulting to PE (Originally Posted: 02/28/2013)
Two questions regarding the aforementioned paths to PE:
Which is more common?
If PE is your ultimate goal, which track is better for PE (where should you start), consulting or corp. dev.? Is being in one role better than the other, to break into PE?
Thanks.
Both are common for MM PE (what I can speak to) and it depends on your interest. Consulting is going to move you towards becoming an operator, whereas corp dev/IB prepares you for the financial side. If you like strategy, monitoring, integrating, etc. go with consulting. If you want to be a dealmaker and control structuring transactions, go with corp dev.
There can be overlap, particularly as you move down in terms of size.
While its kinda hard to generalize because the firms/roles can vary widely but generally speaking I'd say MBB -> PE (especially bain) is the easier route.
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