Exit opps for PM roles in asset management firms
I'm familiar with the exit opps that your classic M&A or PE roles give you, either within finance or elsewhere (e.g. corporate strategy/business development at companies, be they start-ups or F500). However, I was wondering what the exit opps are for those who are in (for example) a portfolio manager role at BlackRock or one of the big banks' asset management arms (e.g. GS or JPM) etc.
Like if you are in a multi-asset strategy & solutions team at a large AM firm (or in equities or whatever), would corp dev roles take a look at you with the skills that you have (and if not, is it a losing battle in any case if you learn the modelling skills that one would otherwise learn in IB?)
Based on the most helpful WSO content, the exit opportunities for a portfolio manager role in large Asset Management firms like BlackRock, GS, or JPM are quite diverse.
If you're in a multi-asset strategy & solutions team, or in equities, you're already equipped with a strong understanding of financial markets, investment strategies, and risk management. These skills are highly transferable and can be attractive to a variety of roles within the finance industry.
Here are some potential exit opportunities:
Larger, More Prestigious Fund: One common path is to move to a larger, more prestigious fund. This could be another asset management firm or a hedge fund. The experience and skills you've gained can be very valuable in these roles.
Hedge Funds: Transitioning to a hedge fund is another common exit opportunity. The investment analysis skills you've developed are directly applicable to hedge fund roles.
Private Wealth Management: If you're interested in working with individual clients and managing their wealth, private wealth management could be a good fit. This could be at a bank or a dedicated wealth management firm.
Corporate Roles: Corporate strategy or business development roles at companies could be a possibility, especially if you've developed a strong understanding of a particular industry through your investment analysis.
Entrepreneurship: Many portfolio managers leverage their financial expertise to start their own investment firms or fintech startups.
Remember, while modeling skills are important, they're just one piece of the puzzle. Your ability to analyze investments, understand markets, and manage risk are equally, if not more, important. So, even if you didn't pick up modeling skills in your role, it's not a losing battle. You can always learn these skills through courses or self-study.
Remember, the world of finance is vast and there are many paths you can take. It's all about finding the one that fits your skills and interests the best. Keep swinging from branch to branch until you find the perfect fit!
Sources: Why Work in Asset Management?, Asset Management vs Investment Banking for exit opps into value-based hedge funds, Asset Management exit options vs Investment Banking, Asset-Backed Finance & Capital Markets Exit Ops from BB
If you have achieved to become a PM at any reputable AM shop there are almost 0 exit opps that are more attractive than the current seat you're in. You likely work on par or less than your corp dev counterparts and make significantly more. This has been talked about the no end on this forum. Anyway, I have seen Analysts go to corp dev at the companies they cover. With and without IB experience
Thanks - really appreciate the response. Do you have any views on the multi-asset strategy roles at these shops? Judging from what you wrote I'm guessing that as long as you're not an idiot, whether you're in that or in equity or pure credit should not make one iota of a difference.
Thanks - really appreciate the response. Do you have any views on the multi-asset strategy roles at these shops? Judging from what you wrote I'm guessing that as long as you're not an idiot, whether you're in that or in equity or pure credit should not make one iota of a difference.
Many people are very happy working as a PM at a big AM shop as their terminal job, but some alternative paths include:
Leadership positions at an asset manager, such as CIO or CEO.
Starting your own AM shop or hedge fund.
Going to work for an allocator, like a big pension, endowment, foundation, or maybe an insurance company.
Other special opportunities related to the specific type of portfolio management you do, which could have overlap in private markets or new investment products.
I've not seen any PMs looking to move into a corporate development role. If you stuck around long enough to make PM, you probably aren't looking to make a career change. On the other hand, some newer PMs look good on paper but just don't perform that well, or their strategy becomes obsolete. These folks could end up in all kinds of positions, like Client Portfolio Manager, or some kind of corporate job. But that risk is not unique to AM, there comes a point where you have to be able to do the job if you want to get paid to do the job.
how much does a PM make at lets say a MM firm?
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