Post-MBA VC to HF????

I have worked at a venture firm for a year and a half where I have co-led multiple investments. Received MBA from Top 10 program and was previously in MM/BB IB. Really want to head to a hedge fund having realized that venture is far too slow (not quantitative enough either). I feel that I have a very transferable skill set, but wonder if the switch is even feasible. I would love to hear if anyone has made this type of switch. Thanks.

 

We mostly focus on technology, but also some HCIT. Outside of credit, I guess I just feel pretty confident that the combination of my banking / MBA / VC has given me the skill set to be able to provide value to a fund that looks at investments from a fundamental approach, i.e. l/s, value, etc. I guess the broader issue is that VC is just not as intellectually stimulating for an investor as it is for an operator (obviously one person's opinion). Now the hard part is convincing a HF of this!!!

 

I think you would have a shot. Best way to get in front of a HF if you don't have an internal referral would be through headhunter. Check the forums for lists or PM for some contacts. A quick phone call with an experienced HF recruiter should be able to answer your questions about the career switch.

 

Hmm...good question. As far as I know, the skill sets are entirely different. HFs usually look for traders if I'm not mistaken and traders have very little in common with VC analysts. Now that is not to say you couldn't get hired, but I would think that you wouldn't be high on the call back list.

Since you don't seem to know all that much about HFs, I'm assuming you are interested in HFs because you see HF managers walking away with BILLIONS of dollars every year. I know, it sounds like fun doesn't it?

One option for you is to see how you like VC and maybe stick with it if you enjoy it. Most of these HF managers make so much money because they manage so much money. Being in the VC industry will give you the contacts needed to be successful anywhere.

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
 

Completely agree that it does not dictate my career path. I have NO exposure to VC thus far but have decent exposure to the HF industry (worked in prime brokerage). I know I am interested in HFs. Hopefully I will enjoy VC, but was really wondering if the change was possible assuming I was to receive and accept an offer. I am planning on taking the CFA regardless of what industry I am in, so hopefully that will help.

 

Honestly depends on the VC and the HF - if you've spent a couple years out of school doing VC, my question for you would be in terms of how much actual modeling experience / proficiency you've got, as an HF hiring into a junior role is going to want to check the box on that. The nice thing about coming from VC is that you've got a good mental toolbox on how to think about good business / bad business, arguably more so than those coming out of say IBD.

Helpful?

 

Modeling experience is decent, valuation close to zero. My idea is to move to a HF role in the long-term, but I don't want to miss out on the VC gig for now (enjoy it while it lasts). I like both. They are quite different of course, so I guess the real question is how accessible the HF world is at a later stage (say with 4-5 years of vc experience).

 
Best Response

Dr. Schultz - I am actually trying to make this switch, and it seems that it will take a "perfect" fit to make it happen. I am post-MBA with analyst and associate IB experience, and 1.5 years in VC. Modeling and valuation is a no-brainer, and actually, the main reason that I am trying to change is to go back to a more quantitative / analytical investing role. So far the process has been tough (has not been that long, so there is hope). I keep seeing postings that are pretty targeted in the backgrounds they want (usually say something along the lines of "we will also consider those with PE / VC experience), but people in the industry keep telling me that the VC background is very valuable. I am very biased but definitely agree with DaCarez in the sense that the mental toolbox / ability to really understand what makes a successful business is something that should translate very well to a HF, especially one that may be a little bit of a hybrid fund who invests in private rounds. One note, I am in Boston, so this search could be much different / easier in NYC / CT.

 

from my understanding VCs also have okay exit opportunities into growth-stage PE firms. It makes sense intuitively, as if you're good at analyzing investments for seed stage tech companies, you'd clearly be able to apply at least some of those skills to investing in growth stage companies (at least Tech companies). VC is not typically a place you want to exit from though- it's more of a destination. If you're not sure between VC and HF, go into IB - that'll keep your options open.

 

To me there are 2 types of buy-side firms: liquid markets and illiquid/private investments. VC obviously falls into the second category with PE funds. In order to move to a hedge fund you'd have to either start at the bottom or learn to be a "market person"...ie you'd have to learn all about the products the firm trades and how those markets work. It's definitely not an easy process and its why you see many more former traders running money at macro and fixed income funds then you see former bankers.

 

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