Best Path Into Public Investing?

Based on the most helpful WSO content, here’s a breakdown of your situation and actionable advice:

1. Understanding the Challenge:
   Your background is diverse, but the detour into PE PortCo strat fin might be perceived as a deviation from the traditional path into public investing. Hedge funds and public equity roles often value a more linear trajectory, such as IB → HF or IB → PE → HF. However, your software-focused experience is a strong asset, especially for funds with a tech focus.

2. Option A: Strat Fin/Corp Dev at Pre-IPO Software Company:

   • This path could be beneficial if the company is high-profile and you can leverage the experience to build a narrative around understanding growth-stage businesses and market dynamics.
   • However, transitioning from corp dev/strat fin to public investing is less common and might require additional networking and positioning.

3. Option B: Returning to IB as an Associate in Software Sponsor Coverage:

   • This option aligns more closely with traditional paths into public investing. Returning to IB would allow you to rebuild momentum and position yourself for HF recruiting, especially if you can focus on software/tech deals.
   • Additionally, IB experience is often viewed as a strong foundation for public equity roles, as it demonstrates analytical rigor and deal experience.

4. Recommendation:

   • If your long-term goal is public equity investing, Option B is likely the better choice. It provides a clearer path to hedge funds or long-only roles, especially if you can leverage your software expertise.
   • While Option A might offer interesting experience, it could make the transition to public investing more challenging and require additional steps to bridge the gap.

5. Additional Tips:

   • Networking: Reach out to professionals in public equity roles, particularly those with a tech focus, to understand their paths and seek referrals.
   • Positioning: Highlight your software expertise and deal experience in your story. Emphasize how this makes you uniquely qualified to analyze and invest in tech companies.
   • Recruiting Strategy: Target funds with a tech focus or those that value operational experience, as your PortCo background could be an asset in these cases.

By choosing the IB route and strategically networking, you can better position yourself for a successful transition into public equity investing.

Sources: Breakdown of Post-IB Exit Opportunities, HF to PE post-MBA - my story and seeking advice (long-time poster)!, Worse than IB?, Why do you think public equity is more interesting than private equity?, No PE in my PA