How to break into endowments?
Hi - I am a recent college graduate (NESCAC) who started their career at a boutique management consulting firm. I interned and then took a return. Found out I was really interested in the endowment management space. Figured I needed to pivot pretty quickly so I took a BB PWM entry-level role, with the hope that I will get the portfolio/investment experience I otherwise would not have received. It is for a highly regarded, family office team.
I think endowment roles are a bit of a black box so I'm hoping to get some advice on how to break in, given my position. Should I sweat it out in PWM for a while, or try to move onto a OCIO/institutional team? Will I be able to compete with IB/AM/PE kids? Wondering your guys' take. Be as brutal as necessary. Thanks.
Assuming you are interested in manager selection - do NOT "sweat it out in PWM". At large institutional places, the PWM type roles and the actual investment facing roles are separated and the longer you stay in a PWM type role the greater the risk you are labeled as such.
E&F is regarded (on here at least) as less "prestigious" than PE/HF/VC so while you will face competition from IB analysts, you most definitely have a shot.
I would start reaching out cold to all the college endowments, any large nonprofit type institution with an investment arm, and get in touch with headhunters in the E&F space. You can spin your current role well given you work at a large FO and explain how you are interested in manager selection / dilligence.
Thanks, this is helpful. I just pivoted and have less than 1 year of FT experience. My plan was to get licensed (Series, FINRA) and start networking ASAP so I won't get caught in PWM. Ideally be in PWM for 2 years or less, sell my time in a FO. Would that make sense in your book? Also, any advice on the cold emails? Appreciate it.
So firstly some of these office endowments are pretty hidden, they don’t publish their address.
Most of them don’t work weekends though so I would consider breaking in then, as less people are around. Obviously there’s gonna be some security so being able to bypass that system is important.
Once you’re in you’ll need like an IT specialist to access their systems and do what you want to do breaking in, but my guess is they have pretty good firewalls.
Why are you getting so much shit, I thought this was a clever bit
Limited seats (most take 1 analyst every few years). Most also will only hire from their own school, unless it is MIT/ Stanford/ Harvard where they can get top talent from Wall Street. I would look at OCIO and Investment Consultants (Cambridge Associates, Partners Capital, etc) as a good breaking in point. You may have to go into a Pension Fund or Foundation first and make the lateral into Endowments later.
Pretty crazy how high these guys get paid...seen some pay disclosures for college endowments that had 6+ people making $5mm+ each.
There are some big earners but it is super variable. It depends a lot on the school.
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