HF Exits/Options
What are options for analysts if you get fired from a multi manager HF? If you’re junior maybe bounce around and get lucky with a good team. But if you have a few years of experience at a couple different places already it seems hard to get another shot, especially without a good track record.
So what do analysts generally do after? MBA, corp dev, IR, and maybe SS ER are options, but they’re all downgrades at least from a $ standpoint.
Corp Dev is the most common. Usually M&A or corporate strategy. It can be an ok role.
Equity research can be a decent field but it’s rare for analysts with 4-5 years of HF experience to get an analyst role on the sellside. Most likely end up as a senior associate, but it’s a very different job and comp is much lower.
MBA is an option but needs a lot of preparation, especially for the top schools.
Idk much about IR seats but makes sense. I guess the challenge is picking the right company to work for.
What does Corp Dev comp look like for a guy who's been in buyside (AM / HF) for 5yrs? 10yrs?
Would banking be an option? If they did banking out of college they could probably go in as an associate with a short path to VP since they should know the companies and management well
You can clip high fix figures in IR, but you need some experience to get a head of IR role (2 years at a pod wont suffice). Similarly, senior SS gigs in many/most cases are high six figure gigs but would prob need to work your way up (rare to take a senior SS seat without any prior SS exp; with the exception of Bernstein, where it is somewhat common, but they take experienced industry guys only).
How many YoE do you need for IR? I didn’t know it paid so well. Do companies have junior IR roles?
There is always Berenberg.
Low blow
How many years of buy-side experience (LO AM) would it take to get a Head of IR role at a good mid-cap / large-cap? Not necessarily even one that pays high-6 figures but maybe even mid-6 figures
High six figures would be for a Head of IR role. Keep in mind this could be 50-60% stock thats vests over a multi-year period. Most have 8-10 yrs of xp. It is an excellent job for experienced buyside/sellside professionals. Doesn't get discussed on WSO because its not a job for jrs, I don't know comp ranges for a #2/#3 type IR role but likely not something that you want to do in a junior role.
Does IR hire out of HFs? I’ve mostly seen former sellside analysts go to IR. Also what’s the hardest part about the job?
The hardest part is dealing with pod monkeys who hound you over a 10 bps deceleration in credit card data
Would PE/GE after MM HF be doable if you're based in London?
PE is unlikely unless you’re willing to start at the associate level. Different skillset
GE is doable but would depend on your coverage. Even then it seems like a stretch since MMs are known for trading quarters, opposite of GE
Purely a guess but here’s how I think about it:
For those who joined a HF out of PE as an associate, it will be tough but doable to get a role in PE. It would be a step down since you’ll likely come in as a senior associate.
If you didn’t have PE experience prior, it’s probably impossible to go PE once you hit 3-4 years of HF experience. Too old, different skillset, etc
How come nobody has mentioned long only?
Cuz why does a long only need "pod monkeys who hound you over a 10 bps deceleration in credit card data?"
I think it's doable. Though LO do value CFA, which HF understand is not very helpful in their model.
Not that easy for a pod-guy to find an Analyst seat at a good LO. At my firm, only know 1 analyst (of 20+ total) who came from that route. Rest are either home-grown or taken from other good LOs
The NerdWallet's founder was ex-HF so I guess entrepreneurship is always done the road.
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