What Would You Do: Renege MF PC?
Hey all,
Wanted to gather your thoughts on my current scenario
I accepted an offer to MF PC for Assoc 1 (currently An 2 in banking), but realized my ultimate goals are in the HF world. I initially accepted the job under a short timeframe because of (a) the name brand, (b) preconceived perception that I could reasonably pivot into credit HF or some other SS strategy with public investing component (only after, I realized this is unlikely), (c) “the golden age of private credit”, and (d) I thought it was the best I could do. It seems like MF PC is heading towards AUM hoarding (higher grade 1L capital) and less about differentiated investing/generating alpha, which wouldn’t be ideal for my personal development as an investor. With 100+ investments per fund, my view is that private credit is essentially a beta play. Anyway, now I’m feeling some regret taking the offer.
MF PC firm does technically invest “across cap stack”, but firm also has opportunistic arm so I think there’s a ceiling to the hairiness of the deals. I’m thinking I have a couple options
- Go into MF PC. Stay if I like it. If I don’t like it, I could try to pivot to PE (going back to Asoc 1 level) then recruit for HF from there. Some risks are: seems like a waste of time/big opportunity cost if HF is my eventual goal, limited optionally (seems like just DL lateral, CLOs, and downstream in privates are real options). Some merits are: potential career track (not two and out)
- Renege for PE and recruit from HF there. At what caliber of PE firm would this make sense? Some risks are: 2 and out program + HF is not a guaranteed outcome; MF PC firm is highly connected to sponsors so am worried at potential fallback from renege
A bit of a lengthy post so appreciate the read and any feedback. I understand I’m and grateful to be in a great position but I just want to have no regrets. Also recognize HF isn’t the “promised land”, but I think it’s a better fit for me and want to aim higher
Based on previous WSO threads, here are some insights and considerations for your situation:
Options and Considerations:
Go into MF PC and Evaluate:
Renege for PE and Recruit for HF:
Key Factors to Assess:
Investment Style and Personal Fit:
Long-Term Career Goals:
Market Perception and Networking:
Conclusion:
Given your situation, it might be beneficial to: - Evaluate the MF PC Role: Start with the MF PC role and assess if it meets your expectations and career goals. If it doesn't, you can then consider transitioning to PE or directly to HF. - Network and Gather Insights: Use your time in MF PC to network and gather more information about potential HF opportunities. - Plan for the Long-Term: Keep your long-term goals in mind and make strategic decisions that align with those aspirations.
Remember, each path has its own set of risks and rewards, and it's important to choose the one that aligns best with your personal and professional goals.
Sources: PE Recruiting: Deciding what firm is the best fit, Career Move - Corp to PE/HF in "late" life stage, Q&A: Former Strategy& associate, Private Equity Recruiting Walkthrough – My Experience, From Private Equity Associate to VP in Private Equity
I think you just explain to them that your career goals have changed and you want to do HFs. The blowback is likely pretty limited, doubt they would go around telling the sponsor. But more useful next step would be to try the HF forum if that's your goal.
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