Curious as to what those on here have to say about fund finance and thoughts on pivoting out of the space. I've been in fund finance for the past three years (recently promoted from AVP to VP) at Citi (6 YOE total), functioning primarily in an underwriting and business development position. As of the past year, I've grown to realize that (1) I'm significantly underpaid and (2) the business as a whole isn't as strong as I was hoping. I'm applying to business schools now but, in the off chance that an MBA doesn't work out, has anyone heard of pivots out of this niche aspect of finance? If so, any advice?
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Based on the most helpful WSO content, pivoting out of fund finance is definitely possible, and there are a few paths you can consider:
Corporate Finance/FP&A Roles: Your underwriting and business development experience can translate well into corporate finance or FP&A roles, especially at larger corporations or startups. These roles often value the analytical and financial modeling skills you've likely developed.
Private Equity Portfolio Operations: If you have exposure to fund structures and understand the operational side of funds, you could explore roles in PE portfolio operations. These positions often require a mix of financial acumen and operational insight.
Lateral Move to Investment Banking: While it might be challenging without an MBA, some have successfully transitioned into IB roles, particularly in capital markets or M&A, by leveraging their network and showcasing transferable skills.
Search Funds/Entrepreneurship: If you have a risk appetite and are interested in running a business, search funds could be an option. Your experience in underwriting and business development could be valuable in identifying and acquiring businesses.
Hedge Funds or Asset Management: Depending on your exposure to fund structures and investments, you might explore roles in hedge funds or asset management, particularly in operational or investor relations capacities.
Internal Networking: If you're at a large institution like Citi, consider networking internally to explore other roles within the bank that align more with your interests and long-term goals.
If the MBA route doesn't work out, certifications like the CFA or CPA could also help bolster your profile and open doors to new opportunities. Additionally, leveraging LinkedIn and speaking with recruiters about your transferable skills can provide clarity on viable paths. Good luck!
Sources: Breakdown of Post-IB Exit Opportunities, Lesser known MBA career options? Looking for advice on what to do post-HBS., Staying a third year as a PE associate vs. doing something nontraditional, Grad School and Age, What are the best alternatives of IB (or other high finance)/Consulting if people don't get in?
Given your background in fund finance, underwriting, and business development, transitioning into private equity, venture capital, or credit funds could be a natural next step. You could also explore roles in corporate development, investor relations, or broader capital markets. If an MBA doesn’t work out, look into roles in risk management or financial modeling. Focus on leveraging your transferable skills in financial analysis, relationship management, and underwriting when pivoting to new areas of finance. Networking and informational interviews can be key to making this shift successfully.
Don't have anything to really add except to share my condolences. I'd imagine being in the FF space at Citi would be pretty rough given their exit from the sub-fin space in 2022. Do you do much NAV lending?
Could you potentially look into moving into an FI / Funds related relationship management team?
Seriously - it’s been a big challenge. Care to expand a bit on what that looks like? And my group didn’t do much NAV but aware of the space and can speak to it pretty extensively.
I'd imagine it would involve changing banks. Perhaps into a credit analyst type role?
YOU'RE SO BACK, OP
https://pe-insights.com/citi-returns-to-900bn-subscription-line-market-…
I had also thought Citi pulled out of the fund finance space. Didn’t know they still had the business.
Would look to pivot into lev fin if I were you.
Whats your general opinion of fund finance and exit opps?
It's a pretty niche space and depends if you ever got involved in NAV lending. NAV lending can get slightly more complicated than plain vanilla subscription finance facilities, and people who are got at it, can sometimes leverage that into a project finance role. However, sub fin is still a great product given its risk/reward metrics and people can often go on to be corporate banking RMs with significant FF experience under their belt.
If you're thinking about PE / IB exit oops, I dont think FF is the place for you.
To be frank, I’m having a bit of trouble understanding how I’d be able to parlay FF into a LevFin position
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