I’m exploring the possibility of pivoting to an allocator type of role (i.e. Endowment, Foundation, Pension Fund, etc.). Before I begin to get my hopes up, I would be curious to learn the answers to a few questions that I have and I couldn’t think of a better group to ask than my esteemed WSO monkeys. But first, some background: I have 8 years of experience with 3 in accounting and 5 in sell-side ER where I am currently a VP at a BB bank. I am a CFA charterholder. My total comp is in the $200-$300k range. So as for my questions: (a) Is this going to be a feasible move for me? i.e. Will I get picked to interview for allocator roles given my background? (b) Will I be back at an entry-level position when I move over? (c) Would it be possible to lateral at a total comp that is reasonably close to my current level?
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Based on the most helpful WSO content, here are insights into your questions about pivoting to an allocator role:
Background:
Questions and Insights:
(a) Feasibility of the Move:
(b) Entry-Level Position:
(c) Compensation:
Additional Considerations:
By focusing on these aspects, you can better position yourself for a successful transition to an allocator role.
Sources: Breaking into buy-side equity research - my experience, What has been your total compensation progression in your career?, The right time to lateral?, Ask CompBanker, Burned out at dream job - time for a change?
Work at E/F/FOs for some time now:
1.) Honestly, it might be difficult. With 8 YOE overall you would be expected to be able to source managers and mostly run a diligence processes by yourself, which wouldn't be possible with limited relevant experience. This would be particularly true if the role was expected to span multiple assets classes (e.g. public equity, credit, and hedge funds) and/or private assets. You might be able to find a role specifically focused on public equities, where you have more relevant experience, but that narrows your search pool.
2.) I don't think you would reset all the way back to analyst level, but it's possible if you really wanted to lateral you might need to take a step down to an associate role (assuming you can land interviews)
3.) In NYC at the associate Director level, that comp range is no problem. Even senior associate roles might hit the bottom end depending on incentive comp. Outside of NYC/HCOL cities it would depend on where you landed seniority wise, but if you were at an Associate Director level, thats probably a pretty good range.
I appreciate the response, this is hugely helpful. So it sounds like it’s going to be tough but possible, that I may have to take a title cut but won’t be entry-level (find by me), and the pay might take a small hit but nothing outrageously low. I think if this all holds I will at least give it a go at applying/networking a bit.
I think it is definitely possible. You have relevant experience and CFA. A lot of ppl in allocator roles start in market facing roles. Just need to be strategic about the roles and companies you are going for. Also consider pension funds and insurance companies in your list of allocators. Maybe the investment consultant/outsourced CIO shops as well.
Some shops will have public equity teams and I think that is what makes the most sense as a natural transition. It may be a mix of manager selection and direct investing. Once you establish yourself there, it’ll be easier to sidestep into a different role.
Curious, what's your view on similar YOE but in IB & PE? Would that catch flak for having only private markets experience (albeit diversified across industries & sectors)?
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I think an E&F role will be very difficult as noted above but there are other allocator types out there that would probably be pretty receptive to you, particularly if you are looking at more generalist or public market oriented roles. Family offices (single or multi) or private wealth could be good fits and would likely see the value in your skillset beyond the clubby predilections that many E&Fs have.
Would love to revive this topic...
Work at a well regarded placement agent - and let me tell you, theres a lot of money out there from a lot of different sources. As Lima noted, if you're interested in an allocator seat, there's a ton of different types of seats out there - some RIA's and WM firms may have a bit of a lower barrier to entry and allow you to gain this skillset prior to trying to lateral to E&F seats if that's what you're ultimately looking for. Happy to answer questions on the space from my POV if helpful
Would it be ok to PM you? Also interested in the E&P field but im coming with 2 years of experience.
Thanks for the replies. This is all very useful.
So a couple of follow up questions:
(1) Could going back and getting an executive MBA at a school like Columbia help my chances? Are there recruiting pipelines for allocator roles at these schools? I’m too old to go back and get a full time MBA, however I’d definitely consider an EMBA.
(2) Does anyone know of any good recruiting firms that specialize in E&Fs, pensions, family offices, etc?
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