Asset Management: If you had your time starting again.

Hello all, as the title suggests, if you had your time starting out in Asset Management again, going all the way back to Year 1 at University and seeking Spring Insight weeks. What would you do differently, and what do you wish you did more of to prepare yourself?

Bit of background information on myself:

  • I'm a 32 year old going through a career change.
  • Hoping to pursue a career in Asset Management (as many of you on here have seemingly discouraged me from pursuing a career in IB.
  • Ex Parachute Regiment veteran.
  • Starting a Finance degree via Open University full time in October whilst working full time.
  • Currently studying for my CFA IMC - hoping to have my exams squared off by end of September.
 

Few things:

  1. Get good GPA (4.0)
  2. Get into IB stay for solid 2 years or if on good track 4 (+2 years as Associate)
  3. Get into prestigious MBA
  4. Get into PE/HF/prestigious LO

*Step 2 & 4 will require networking

If IB is an absolute must avoid item on the list:

  1. Get good GPA (4.0)
  2. Do your homework on the field you want to end up in
    1. Day in life
    2. Skills needed & feasibility of developing the required / ideal skill sets
    3. How to develop/master those skills
    4. Practice (do what the guys in role you're pursuing would do, even if they aren't the greatest)
    5. Make portfolio (based off of Practice | could be stock pitches or stock investments with research materials)
    6. Recruiting characteristics (agencies / off cycle / on cycle, if any)
  3. Network like crazy with whatever field you want to end up in. (Note: PE heavily recruit folks with deal experience; HF much friendlier to non-IB background; LO AMs regardless of prestige seek folks with research experience, Sell-side)
    1. Find a mentor (requires luck / genuine dedication)
  4. Final note: I don't know if IB recruits people at your age range as analysts (typically campus recruitment, so info sessions?) but would still recommend IB for:
    1. Structured recruiting process
    2. Structure career progression
    3. Reputation for hard work / grind carries a lot more weight than you can imagine
    4. Opens many many doors (except some HFs)
      1. Optionality isn't always great, but not having the option when you desire it is much much worse

Common theme, strong GPA is important. Similar to my comment on optionality, strong GPA shows employers you can succeed at least in one area of competition. Personally, I'd hiring someone with strong GPA over a person stacked with certifications/designations with low GPA. Others may disagree but that's how I think. 

Best of luck!

 

To end up a larger LO (Welly, Fido, Cap Group, etc.), in your opinion, would it be better to start off at a $50B AUM LO firm doing buyside research or at a BB doing IB out of college? Your comment is fantastic btw, SB'd!!

 

TLDR: I don't know which one is better. My firm is nowhere near the size or prestige of the firms you listed, so you should wait for someone from that level of firm to chime in.

Not a good comparison. But $50B AUM LO AM should have better shot at those firms you listed. Many on the non-PE buyside criticize IB experience as being transactional and deal oriented and not thinking like investors (may or may not be true, just what I've read/heard in the past). I would venture to guess that the LO AM experience is only valuable with a decent number of years of experience + good track record. But in the case of early stage career, IB background should be more compelling? It's tough to say. IB does recruit a lot more so in terms of competition, as fierce as it may be, the chance of being recruited may be higher than that of LO AM just because the lack of new positions being available to undergrads in AMs. But then, IB guys who last the first two years are just better geared for intense work if needed..

 

What did you end up doing, in a similar position now though with a smaller AUM firm (around 20b)

 
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