Path to Pension Fund guy
Hey y'all, I've realized more and more now that I've become mid-career that the closer to the source of capital, the more control and credibility you have. My career so far has taken me through roles where I'm increasingly closer to the capital. I started off in brokerage, then moved to a GP, and am now at a large-ish LP. On one side I'm looking at our LP controls in a venture, and on the other side there's our client - public/private pension fund, endowments, etc. I thought I had reached the peak of "clientship" but apparently I can be wine and dined even more than I currently am.
And that brings me to my question - how do I land a role at one of these pension funds? I'm talking a CalPERS, CalSTRS, LACERA, PSERS, etc. As I mentioned, my background isn't in IB, endowment management for a university, or megafund. I started in brokerage, moved to asset management at a regional GP/developer, then landed a role 2 years ago on the institutional LP side (where we're still very much so in the weeds), also in asset management. Currently an asset manager of a large varied portfolio inclusive of LP stakes and direct holdings. How can I position myself to jump to an Investment Director or Associate in Investments at one of these conglomerates? I know the job is more portfolio management, so do I need a job in portfolio management first? Is it advisable to get a CFA or MBA to even be in contention? Does my more "hands-on" experience hold any weight for these pension hiring managers since it might demonstrate better ability in manager selection and due diligence, since I now know how the sausage is made?
I'd appreciate any tips or thoughts on what it takes to get a role at a fund like this, and maybe it just comes down to luck given so few spots open up (though I do see a lot of CalPERS/STRS openings...). If so, is what it is!
To position yourself for a role at a major pension fund like CalPERS, CalSTRS, or LACERA, here’s what you need to focus on based on the most helpful WSO content:
Leverage Your Hands-On Experience:
Your background in brokerage, GP asset management, and institutional LP asset management is a strong foundation. Highlight your "in-the-weeds" experience, as it demonstrates a deep understanding of manager selection, due diligence, and portfolio oversight. Pension funds value candidates who know how the sausage is made, as this can translate into better decision-making for portfolio management and investment strategies.
Target Portfolio Management Roles:
Since pension fund roles often lean heavily on portfolio management, transitioning into a portfolio management role before applying could strengthen your candidacy. This would align your experience more closely with the day-to-day responsibilities of an Investment Director or Associate in Investments.
Consider a CFA or MBA:
Network Strategically:
Networking is key to breaking into pension funds, as these roles are limited and often filled through connections. Use LinkedIn to connect with current employees at your target funds, attend industry events, and schedule informational interviews. Building relationships with people in these organizations can give you insights into their hiring processes and culture.
Tailor Your Application:
When applying, emphasize your ability to manage complex portfolios, conduct due diligence, and work with diverse asset classes. Showcase your understanding of the fiduciary responsibilities and long-term investment horizons that are central to pension fund operations.
Be Patient and Persistent:
Openings at pension funds can be rare, and competition is fierce. Keep an eye on job postings, and don’t hesitate to apply even if you don’t meet every single requirement. Your unique mix of hands-on experience and institutional knowledge could set you apart.
Placement Agents and Recruiters:
Consider working with recruiters or placement agents who specialize in institutional investment roles. They can help you identify opportunities and position yourself effectively.
In summary, your hands-on experience is a significant asset, but complementing it with a CFA or MBA, targeting portfolio management roles, and networking strategically will enhance your chances. Patience and persistence are key, as these roles are highly sought after but not impossible to land.
Sources: Q&A: Managing Director at Large Global Asset Manager, How do I land a role at a commercial firm (JLL, CBRE, etc.) from scratch at 26?, Career in Finance - Reality or Reach?, Q&A: Managing Director at Large Global Asset Manager, Q&A: From Big4 Audit -> Big4 Advisory -> MBA -> AM Portfolio Manager
I’m at a credit fund, but any pension fund investor that we meet for LP capital is a cross asset class allocator. Their speciality is portfolio construction and understanding how multiple asset classes (real estate, infrastructure, commodities, public and private equities, etc.) interact with each other to build a portfolio profile that matches their risk tolerance. They aren’t niche subject matter experts that only know RE because otherwise why would they give me their money and pay me fees?
A CFA or an MBA is going to be important because you get the additional knowledge about asset classes outside of RE.
The path there is similar to getting to CIO - you either need to have built the biggest sector in your company so when the old CIO retires you are the natural successor, or you have to build a career of a ton of emotions doing a bunch of different tangentially related stuff.
In my sample size of one. Guy was an MD at REPE fund that blew up during the GFC, ended up becoming a real estate PM for a large state pension fund, and is now a promotion or two away from running the whole real estate team.
How mid-career are you? It sounds like you are maybe 10 years or so out of school with about 5-7 years of experience at asset managers specializing in real estate. In the ballpark or am I out in left field?
I'd start by packaging up your experience/expertise, and looking for roles across asset owners or even consultants/OCIO's as part of their manager research/investment analyst teams that cover alternatives, privates, real assets, etc. Larger ones will have larger, more dedicated teams - the big ones, your hands on experience may even be a benefit as they could actually direct invest vs. outsource it - though realistically, most will outsource it. to me that's the most 'direct' route you have - networking, getting some looks, and holding out your immediate fluency/network/knowledge of real estate to cover that portion - and/or beyond - of their allocation. Heck - you could even look at family offices as well, where they may be more akin to leveraging your direct real estate investment knowledge. Issue is this could be a step down - title and/or position wise - that you'd have to accept, to eventually move up to where you want to be.
The world you are looking at tends to err towards a lot of... credentials. CFA and CAIA are both you'd look at getting - for what you want to do, the content is generally relevant and frankly you'll be surrounded by them as well as competing for roles with folks who have them. RFP writers at this point have CFA preferred - don't be like me fighting the man - if you are committed, just start getting it. I'd also be looking around your area for CFA societies to get involved in or other relevant groups - those can be very beneficial to getting 'in the group'.
On the MBA front - I'd try as hard as you can to avoid this, until someone (i.e. an employer) helps pay for it. As usual - is it mandatory? Not necessarily. Will a top MBA program help you? Yes - it will definitely help pivot, brand, and network you - plus you'll learn some relevant topics for where you are headed.
Not sure if this is helpful - happy to help answer anything else if I can.
Accusamus omnis consequatur reiciendis quia nulla natus. Ad alias aut perferendis sit nam amet numquam. Sed quia odio accusantium modi. Dolorum sit quaerat explicabo id deleniti eum alias.
Culpa beatae modi quae magnam ea. Possimus velit repellendus eos magni. Numquam quaerat distinctio occaecati nostrum. Aut quasi rerum quae non accusantium rem.
Dolor unde eligendi similique quidem dolor debitis laborum. Voluptatem mollitia sit et dolores inventore laboriosam voluptas. Voluptas exercitationem sit ducimus atque et dolor. Iure qui quia iusto consequuntur qui est. Quis consectetur quasi libero temporibus error aspernatur cumque. Nulla sed corrupti corrupti qui incidunt provident aut molestiae.
Ratione rerum minus saepe et aliquid quia recusandae. Voluptatibus labore nulla sed aut. Enim id quod numquam autem asperiores. Qui mollitia nostrum unde expedita illo suscipit. Dolorem ratione dolores aliquid cumque alias.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...