optimizing for HF exits/looks post PE assoc stint. Understand outside of legacy MF that hedge funds are broadly the same, so curious how you think I should prioritize these lower tier MFs for on cycle as a training ground for publics
| +30 | Want out - next steps | 7 | 9h |
| +25 | Is the grass really greener? (LSD millions SM Senior Analyst hopping to C/M/BALY/P72) | 11 | 3h |
| +19 | Fund 1 8%, fund 2 5%, when will fund implode? | 10 | 21h |
| +19 | AI/job update | 5 | 3d |
| +19 | Be a Hardo or lose | 5 | 1h |
| +12 | CorpDev -> HF? | 3 | 6h |
| +11 | Distressed Debt the most right-tail outcome? | 4 | 1h |
| +9 | Confused on all the HF fee jargon | 1 | 23h |
| +3 | Dragoneer | 1 | 5d |
| +3 | Ultramarathon/ intense running in HF? | 0 | 5h |
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If your aim is to move into public markets after two years in private equity anyway, the usual prestige rankings wouldn’t matter that much to me. I’d be more interested in knowing what actually sticks with you after those two years. How deeply do they actually delve into individual companies there? It would be interesting to me to know whether you really have to form your own opinion. In any case, I wouldn’t choose a team just because of its name.
When it comes to the sector, things would be a bit different for me. Two years in the fund’s later-stage coverage wouldn’t be a bad thing, in any case. I find deal flow harder to assess from the outside. You come across the big deals anyway. Whether the associate in that particular team actually played a significant part in them isn’t mentioned anywhere.
You’d probably be able to glean the most from the former associates. Not just the really obvious exits, either. If public equity keeps cropping up in a particular team’s track record, I’d take a closer look at what they’d actually been doing before.
thanks for this...would you say sector coverage for PE shld align to what you want to cover in HF? Is tech PE really what you are looking for when hiring for TMT seats?
If you're heading toward TMT anyway, I'd have tech PE pretty high up. At least then you've already had a few names and business models from that area on the table when you get to the interview.
I'd also look at software PE differently for a later software L/S seat than just some TMT label.
When optimizing for hedge fund (HF) exits post-PE associate stint, the key factors to consider are the fund's reputation, deal exposure, and the skill set you'll develop. Based on the most helpful WSO content, here's how these firms stack up:
Carlyle: Among the options listed, Carlyle is the most established and widely recognized. It offers strong deal flow, exposure to a variety of industries, and a global platform. This makes it a solid choice for hedge fund exits, as its brand carries weight and provides credibility. Carlyle's training and network are also highly regarded, which can be advantageous when transitioning to HFs.
Bain Capital: Known for its operational focus, Bain Capital provides a unique skill set that can be valuable for certain hedge funds, particularly those with an activist or operationally intensive strategy. While not as traditional for HF exits as Carlyle, Bain's reputation and deal experience still make it a strong contender.
Apax Partners: Apax is well-regarded but leans more towards growth equity and tech-focused investments. This could be beneficial if you're targeting hedge funds with a tech or growth-oriented strategy. However, its brand may not carry the same weight as Carlyle or Bain for broader HF exits.
Veritas Capital: Veritas is highly specialized, focusing on government and defense-related sectors. While this niche expertise can be valuable for certain hedge funds, it may limit your options compared to the broader exposure you'd get at Carlyle or Bain.
CD&R (Clayton, Dubilier & Rice): CD&R is a strong player in the private equity space, with a focus on operational improvements. While it offers solid training, its brand and deal exposure may not be as directly aligned with hedge fund recruiting as Carlyle or Bain.
Recommendation:
Ultimately, your decision should also consider the specific hedge fund strategies you're targeting and the type of skill set you want to develop during your PE stint.
Sources: Breakdown of Post-IB Exit Opportunities, Megafund vs SM Hedge Fund, Are top MFins target programs for Private Equity firms?, Q&A: PE Secondaries Principal
Lol just get the job man. Your ‘training’ for publics won’t be that different across scaled PE platforms. Who puts Bain Capital and CD&R anywhere below tier 1 megafunds? Carlyle having trouble sure but these three are drastically different to Apax/Veritas.
helpful thank you. Advice i've been hearing from many is try to go straight to HF from banking, and have began a few process with a couple SM now.
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