Worth getting CFA?
Graduating from a T30 semi-target next year and recruiting FT for private markets (private credit, secondaries, co-invest, other alternatives). I have a private-markets adjacent role lined up this summer.
I plan on sitting for the CFA Level 1 before I graduate. My impression is that the CFA adds clear value for public markets and research roles but is a weak/neutral signal for private markets funds.
My question is: is it worth getting the CFA L1 then? For those of you who work in private markets, was the CFA (L1 or otherwise) additive in your career or unnecessary given the time investment?
Based on the most helpful WSO content, the CFA's value in private markets is generally seen as limited compared to its relevance in public markets, research roles, or asset management. Here's a breakdown:
Private Markets Relevance:
CFA Level 1:
Opportunity Cost:
When It Might Be Worth It:
In summary, while the CFA Level 1 can add some value, it is not a critical factor for private markets roles. Your time might be better spent on networking, deal experience, and honing technical skills. If you have the capacity and your firm supports it, pursuing Level 1 could still be a worthwhile personal and professional goal.
Sources: Why I Left PE & Switched to the Public Markets, What roles can I get with a CFA, Q&A: 3rd Year PE Associate ($10bn+ AUM, MBO/LBO, equity, mezz, distressed debt), Once and for all, is the CFA still worth it?, CFA® in REPE? It doesn't seem very common, worth the work? Input appreciated.
Private markets content is pretty basic through L1/L2 but ramps up to ~30% of exam weighting if you take that specialized pathway for L3.
Lateraled from B4 gov consulting -> MM corporate banking (underwriting) last summer and wasn’t really a differentiator. It helped i was able to weave it into my interviews as “more aligned with the type of work i ultimately want to do” vs the completely unrelated work in public sector consulting.
A lot of the threads here will tell you to spend your time somewhere else (networking), but if you really enjoy the content give L1 a shot and see if it’s for you. Just understand the time you’re committing to it will likely be material.
Take a look at the CAIA as well - that's specifically for alternatives and two levels - not certain of specific requirements, however think you should be able to sit for it at this point.
Many folks I know ended up with both of them - CFA and then the CAIA later on. I would encourage networking, getting active in a local CFA society chapter, etc. as more immediately beneficial though starting down the path won't necessarily harm you.
I've found CFA networking opportunities vary somewhat by geography, and generally are especially poor for junior candidates in major markets, like New York. The local chapter events in my experience are always flooded with job seekers and few who might help them. However at more senior levels, working on committees is an option where some networking opportunities exist, but not easy to contribute with no experience, and you will potentially have to do a lot of work for the committee.
If your resume lacks evidence that you can excel at academic work, a CFA may help address that. It takes a lot of focus and self motivation to get that done, so you can point to a CFA to show those skills. Also, if you graduated from a top college, but didn't major in a business or quantitative area, it can help address that gap. Once in an interview, I was asked about some financial calculations I hadn't seen in years that had nothing to do with my job, which I tried to tell him. He said give it a shot. I got the answer right. He said explain where this knowledge is coming from, how the heck do you know this? It wasn't obvious from my background why I would. I mean it was a weird interview. They kept asking me about stuff that I clearly said I didn't know and somehow I kept getting it right. I gave credit to CFA among other things. I mean it was relatively basic stuff, but not stuff I really ever needed to use. I did get offered that job, but I did not end up working there. This was a long time ago.
CAIA I would perceive as mostly a credential for salespeople.
The answer entirely depends on your opportunity cost pursuing a CFA.
First, having a CFA provides 0 additional clout. The only job candidate the certification may differentiate you from is someone that wasn’t going to get the job anyway.
Required study time is large, sizeable portion of this will be spent on unrelated topics, and only a subset of what remains will have any meaningful applicability throughout your career.
CFA:
Lots of time
No clout
Minimal value of information
Pursuing an MBA instead:
Lots of time
Lots of money
Clout
Minimal value of information
Career flexibility
Doubling down in a junior level role:
Lots of time
Earn money
No clout
Subject matter competence
If you have a meaningful role in another industry
Option 2
If youre a student or unemployed or not meaningfully employed
Option 1
If youre already in the industry
Option 3
Theres a ton of nuance here that could change the major +/- of each option and/or justifiably push you to choosing a different option than above.
For me, the breaking point was realizing that I was spending a nontrivial amount of time studying performative garbage or memorizing doctrine.
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