Thoughts on FP&A at private fund?
4 yoe. Have CPA, big4 exp and looking for long term career in corporate finance. Have opportunity to be main FP&A contact at a private fund. Seems to be more strategic than accounting (presenting to execs, scenario analysis, forecasting earnings).
What are some exit ops after this? Would going to private funds IR or tech FP&A/strategic finance be options?
I think most "exit opps" would be bouncing around middle office roles at private funds - FP&A, valuations, IR. Any of these are attainable from where you are (I don't see IR as a step up from FP&A). Long term you could be looking at a CFO or controller role for a private fund.
If you want to be in tech, I don't think it makes sense to take a detour into fund finance. Completely different industry, operating model, financial statements, KPIs, etc. Maybe the core skills are similar (Excel, modeling) but I would just go directly into tech if that's really your end goal.
Not really on OP's topic, but jumping in here to say that I absolutely see IR as a step above FP&A. I say this as someone in an IR role, after having spent 5ish years in FP&A and FP&A adjacent roles.
-As can be guessed, the C-Suite is really keyed into stock performance, consensus, sell-side research on the company, etc. Essentially, how the street is interpreting the message they are trying to send. IR is the window to that world. IR is brought into all the highest level meetings, is in the very first group to be told about any positive or negative insider news, gets tons of exposure to shareholders and the sell-side. My estimate for time spent working with the CEO/CFO would be that IR has 5x-10x the exposure that corp FP&A does.
-Lots of "perks"- it almost feels like IR is treated like a profit center. Ride the corporate jet to conferences, get taken to events by analysts, ring the closing bell.. Never could have dreamed of that shit while in FP&A, but you're right in there in IR.
-Our FP&A team rolls together forecasts and latest estimates, but only focuses internally. IR is focused on how forecasts align to external estimates, how to craft the story, how to anticipate questions, turning the data provided by FP&A into understandable bites for the street. When I was in FP&A I got really good at excel, but knew in the back of my mind that I was building a skill that would have less value the higher up the ladder I climbed. The higher you go, the more important it is to learn to craft the story behind the data- that is exactly what IR is focused on.
-A lot more flexibility in exit opps. I feel like I could definitely move back to FP&A if that's what I wanted to do, could likely pivot to Corp Dev, could possibly pivot to PE (though more of a stretch, but far less than when I was in FP&A), or I could move up in IR at a different company if I wasn't getting promoted at the current one. That is the thing about IR- its a more tangible skillset. Running earnings calls, preparing for questions, building relationships with analysts and funds, organizing roadshows, crafting the story of the quarter.. Specific things you do, rather than more broad, directional experiences in FP&A ("digging into data", "asking questions", "summarizing forecasts", etc).
Not to shit on FP&A- I'll likely move back to that group eventually since in IR you are on call 24/7- but as far as exposure, experience, and training go.. I'd absolutely take a role in IR over FP&A, especially early (4-8 years experience) in your career.
OP's question and my comment were in reference to fund investor relations, not corporate investor relations. Fund IR means you're responsible for creating a PE/HF/VC fund's marketing and fundraising materials: pitchbook, PPM, roadshow presentations, due diligence questionnaires. And then lots of quarterly reporting on fund performance, LPAC presentations, and other ad hoc presentations. This role can possibly open doors to a fundraising role (managing existing LP relationships, courting new LPs, and raising new funds) which is a big step up, but the reporting-focused IR role is not one I would want to build a career in. Generally there is a silo between the two functions at bigger funds, whereas at smaller funds the role will be a combination of both.
Regarding corporate IR vs. FP&A: I agree with you that IR is a better place to start your career (analyst/associate level) due to the factors you mentioned, but FP&A has the better long-term payoff because it's a more direct path to CFO. Head of IR can be a super interesting role and one worth gunning for if that's where your interest lies, but the CFO is always going to hold more power within the company and get paid significantly more.
Interesting- in another thread I characterized PE IR essentially as sales and a few people disagreed with me. Good distinction though- I assumed since OP was posting in the CF form that the topic was Corp IR.
I don't think I would advocate starting a career in Corp IR- I think from a strictly corporate perspective it is better to start in FP&A to get closer to the financials, the reporting cycle, what accounting systems can and cannot do, etc. I think IR is great as a mid career role (really mid-title.. manager, director) because it elevates your view beyond your product line/business unit to the entire company and gives you lots of exposure, letting you exit as director or even VP of FP&A (or something like that). I agree that FP&A has much better visibility to being CFO, but my impression is that a stint in IR can cut a few years off the climb in FP&A.
My own personal example is that I am a manager, yet I was invited to the yearly planning meeting/trip with all the top people at the company. Those in business unit FP&A/finance had to be VP or above to go. Our CEO and CFO likely don't know the names of the BU FP&A people lower than director or VP. I think a stint in IR gives a lot more options and relationships with the top people at the company and, if used correctly, can be a great springboard.
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