Moving from public to private markets
Background- 2 years middle office at GS/JPM, 2 years as portfolio manager/analyst on trade desk, reputable Am firm, specializing in ETFs and MF. Probably important to mention these are almost entirely passive managed, but I've had plenty of exposure to MMs, PBs, etc. I love the role, but the reality is I'm believe I am very underpaid and I don't see myself getting a massive raise by staying...
Just curious what my exit oppotunities are here. I assume it would be realistic to move to a similar role in a family office or hedge fund FO from here (better pay most likely), but would small PE/VC firms be interested, or do they only look for IB/ private markets experience.
Obviously I wouldn't know nearly as much as the other analysts, but really I'm just curious how someone who deals mainly in alt assets would consider an application from a PM that strictly deals with traditional.
Based on the most helpful WSO content, moving from public to private markets can be a challenging transition, but it's not impossible. Here are a few options you might consider:
1) Going Down Market: This involves moving to a smaller firm and hoping to get lucky. However, this just kicks the can down the road. At some point, you will need to bring in/close good deals and if you can't do it, this will eventually become apparent.
2) Doing Something Tangentially Related: You could consider doing corporate development or strategy in-house somewhere. In either of these scenarios, your compensation range is likely to be flat to slightly down.
3) Public Side Roles: These are great for the right person. You really have to be interested in it and have the right risk appetite. Many people in public investing roles stay put because they simply can't imagine themselves doing anything else.
In terms of private equity or venture capital firms, they typically look for individuals with investment banking or private markets experience. However, your experience as a portfolio manager/analyst could be valuable, especially if you can demonstrate a strong understanding of financial markets and a knack for identifying good investment opportunities.
Remember, every firm is different and what one may view as a disadvantage, another may see as a unique strength. It's all about finding the right fit. Good luck!
Sources: Any career regrets after moving from PE to public markets?, Breakdown of Post-IB Exit Opportunities, Breakdown of Post-IB Exit Opportunities, From Private Equity Associate to VP in Private Equity, Private Funds Group (CS/UBS etc)
Your mix of middle office, trade desk, and portfolio management experience is valuable. Transition to family offices, hedge funds, or small PE/VC firms is realistic. Highlight your ETF/MF expertise; it adds a unique perspective. Emphasize your adaptability and passion for alternative assets in your applications.
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