Advice - IBD Mid Level VP —> HF
Hi all — looking for some views:
I’m currently a 4th Year VP in investment banking (Industrial Coverage) and have come to the view that a public market investing career might be a better long-term fit for me, despite the fact that I’m 34.
At a high level, what I enjoy most about my job is covering companies: understanding business models, competitive dynamics, and forming a view on value. I care very little for the execution - I find it easy but boring. As I’ve gotten more senior, the balance has tilted further in that direction, which has made me question the best path forward.
To be clear - I’m realistic about this:
- I fully understand there likely will be a step back in title and comp
- I’m aware the risk profile is higher and comp is volatile
- I’m not under any illusion that this is an “easy” move
- Risk adjusted return is likely lower than my current role, but the thought of running another M&A process makes me want to quit on the spot.
What I’d really appreciate advice on:
- Are there certain types of funds (MMs, sector-focused, longer-term fundamental shops) that tend to be more open to senior backgrounds?
- How would you position yourself if you were me?
- Any common mistakes you’ve seen from anyone doing something similar?
I realize I’m late relative to the typical path and am approaching this with a lot of humility. Definitely open to just quitting and making a living somewhere outside finance if this doesn’t work out.
Thanks all!
Thanks in advance.
Based on the most helpful WSO content, here’s a breakdown of advice for your situation:
1. Types of Funds Open to Senior Backgrounds
2. Positioning Yourself
3. Common Mistakes to Avoid
4. Actionable Steps
5. Final Thoughts
Your background in industrial coverage and your passion for understanding businesses give you a solid foundation for a transition to hedge funds. While the move is challenging, it’s not impossible, especially if you position yourself as a sector expert with a strong analytical mindset. Be patient, persistent, and open to learning, and you’ll increase your chances of success.
Good luck, and remember—Max the Monkey is rooting for you! 🐒
Sources: Life as a Top Asset Manager, Citi, Lazard, Jefferies, Fidelity, Morgan Stanley, Rising Junior Losing Hope and In Need of Advice, https://www.wallstreetoasis.com/forum/private-equity/going-from-mm-investment-bank-to-mega-fund?customgpt=1, Credit funds
Bump
Bump - having similar thoughts
Bumping in case any thoughts, thank you all!
Analyzing a company as a banker (or even a PE guy( and analyzing a company as a public market analyst are two different things altogether
My advice for tenured bankers who want to move to public market investing is to lateral to equity research or specialist sales. First you interact a lot more with hedge fund PMs and how they think (you get very little interaction in most banking roles). Second that transition is a lot more common than from banking.
Agree with this. See a decent amount of desk analysts on distressed / high-yield desks as well coming from VP/D level banking internally, same goes for asset management arms as well though more private than public focused.
Very helpful. Thanks both, I’m going to look more seriously at equity research roles, think that would still give me a lot of the exposure I’m looking for and make for a transition to public investment roles in the future.
Thanks!
Echoing above (ignore title). See a lot of ex-bankers making the move to ER first before making the jump to buy-side publics. There’s a big disconnect in knowledge between the two and interacting with public investors helps build your own investor mindset way better than several years in banking. And being in IB, you barely scratch the surface of knowing a sector properly (speaking as someone who’s made the move from IB to ER to HF).
Super helpful, thank you. A follow-up on that, when you moved from IB to ER, what level did you move at? Trying to understand whether I should expect a fairly lateral move or to take a year or two back.
Thanks
I moved at senior analyst/junior associate level and wasn’t held back. Saw the same at more senior levels (e.g., senior VP). I found those going the other way around (ER to IB) get put back a year at least, or two… which made sense as they’re missing modelling, deal and LBO experience, etc. The disconnect you’d be filling is in-depth industry and company knowledge, and how public markets move more broadly, which just takes a bit of time but quicker/more doable than deal experience imo. I’d also add when making the move, try to move to a good team/work under a good analyst - sounds basic but they can really determine that part of your career and HF prospects
34 isn't late. I made a similar move->corporate finance to buy-side via MBA at age 30, then 15 years on the buy-side (analyst->PM->CIO).
On fund types—longer-duration fundamental shops value industry knowledge over modeling speed. Multi-managers want moldable juniors, harder path for you. Sector-focused industrials funds could be a fit given your coverage.
On positioning—leverage your sector expertise hard. You've seen dozens of industrials deals. You know which management teams are full of it, which business models actually compound, where the bodies are buried. That's sourcing edge. And you probably have a rolodex of CFOs, IR people, competitors, suppliers—that's primary research most junior analysts can't touch. PMs don't want fancy banker presentations, they want ideas that make money. Build 2-3 stock pitches in your sector that show you think like an investor—why is the market wrong, what's the catalyst, what's the risk/reward. Use those to network in. A great pitch opens more doors than a polished resume.
On mistakes—pitches that sound like sell-side research. Thorough but no edge. "Good company, well-managed, trades at 12X" isn't a pitch. "Market thinks X, I think Y, here's why and here's when it gets recognized" is.
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