Help me make a decision
So I have been trying to break into HFs from a small $1bn no name LO AM firm. Previously with a large RIA doing equity research. Never did investment banking but now have 6-7 years of experience post college. I made it through 8 rounds and now on to reference checks, but this is before an offer has even been made or rough numbers discussed - just finished a case, then straight to asking me to provide references. The thing is this is a small cap L/S fund with under $400mn in AUM. They have been around for 10 years but always small, but with 6 IPs already, which seems high. They want a reference from my current job and I am nervous to give that if I am not sure I will be accepting this offer. Also in the running for another fund and have been getting some small traction here or there with others.
Am I being stupid and should I just ask one person above me (we are a tiny firm) for a reference but say I am not sure 100p I am leaving I was just exploring. (lol even that sounds ridiculous). Am I stupid to even consider passing up this (potential) offer? I feel like my problem in my career has been I was not picky enough and just picked places where I thought I could learn instead of being more adamant about getting a better firm to grow in/ that would actually give me a real exit to the HF industry longer term.
EDIT: Is it appropriate to ask what the expected compensation range and bonus process would look like at this stage? I did say a reference from my current employer would not be a problem earlier in the process when they asked if references could be provided, but at the time I was under the assumption that I would have more information about the compensation/etc. by the time they asked for references.
Sorry to bump but on a deadline to respond re: their ask for references. Any commentary would be appreciated!
Never saw a hedge fund asking a reference letter to someone that is still working in at a competitor (even an indirect one)
My two cents, if they still want you after 8 rounds, you should be able to refute their demand of reference
8 rounds? 🤮🤮
I'm curious how it's even possible to need 8 different rounds to meet everyone you will work with at a hedge fund.
To answer your question, I just went through reference checks myself, and from what I've read, it's pretty standard to decline references from current employers because that has an obvious conflict of interest. Think about it, if your employer gives you a good reference and you subsequently quit, then he has to deal with a vacant position and the loss of a person who has been there for several years.
1 round with founder/PM, 1 round with head of research, then 1 round with each analyst and then 1 with CFO. Then a final round with head of research again and to do an in person case. Fun stuff right!
They didn't have any of these on the same day? They just had you interview with one person, waited a week or so, and then set up another round eight times?
How many other references did they ask for and are you providing? If it is a decent number, then I think you can push back about providing reference from current employer.
They wanted 2-3 references, I am giving one from previous employer which is no problem, but maybe going to ask that my current employer's reference to be contingent on an offer first (and have my offer be contingent on my reference checking out).
EDIT: Is it appropriate to ask what the expected compensation range and bonus process would look like at this stage? I did say a reference from my current employer would not be a problem earlier in the process when they asked if references could be provided, but at the time I was under the assumption that I would have more information about the compensation/etc. by the time they asked for references.
Tell them you're still thinking about the offer, and if you accept it you'll provide a reference.
It sounds very off-market and IMO unreasonable to demand references from current employer. It's almost equivalent to handing in your notice, and the firm interviewing you must know that.
Completely agree, but then how do people submit references when they apply to business school? If anyone knew I was planning on leaving, I would be fired by the end of the week.
Small AUM. High beta focused. In an environment where QT can extend for a number of years.
You need to make sure that their short book doing pretty well because on the long size all I see is toasted.
Quick question OP. Did you end up getting the offer soon after they checked references? How did you go about discussing comp? It seems odd that they are checking references before talking to you about any details / extending an offer so wanted to check how you went about everything. May be in a similar situation in a couple of weeks.
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