Is it possible to move from top AM to a special sits HF?

Title. Background is 5-6yrs of global public markets equity research experience (consumer, internet, industrials) at a top AM. I have my CFA and graduated from a target.

Interested in moving to special situations on private side. I have some experience with private-side growth equity but not much. Is it possible to make this transition? I'm thinking anything from distressed debt to buying companies selling under-looked unique widgets...very broad set of opps, I know, but I'm open to options right now

I'm aware that most of these special sits HFs hire folks from top IBs, but any chance I could make the transition from AM? Ultimately it's a different form of investing but lots of common threads on how to research so I'm not too worried about the learning cure -- more worried about how to get a food in the door. Any thoughts?

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Even if you can make the move, I would recommend against it. I moved into value, "medium complexity" capital stack private equity after 2-years of non-transaction work, and I almost got eaten alive. It's just tough to pick up and like you I am bright and pedigreed; I'm not a genius, but my point is that you don't just show up one day and know how to do deals, there are going to be people with way more of an edge who do not have training you anywhere on their radar.

I cannot imagine moving to special sits (!) after 5-6 years of no txn experience. I bet with your background you could make the move, but I'm not sure you should. Does this make sense? If you wanted to make the move, you would have to be positive you are so in love with special sits, and you are willing to weather years of pain of getting up to speed against people who have dozens and dozens of reps ahead of you. Ask yourself if you can close that skill gap and if you want to close that skill gap.

 

Makes sense, really appreciate the candid thoughts. To be frank, I'm just looking for the next horizon in my career and I thought it would be better to leverage investing experience to do some other form of investing vs. going a totally different direction

If you don't mind me asking, what did you end up doing after the PE gig / what are you looking to do 5+yrs out? Honestly it's a confusing time for me right now, and I'm seeing limited upwards mobility at my shop (which is kind of burning me out even tho the hours are not bad)

 

That's the problem with LO; there are not many exit opps. However, I would suggest looking into FOs. I've worked at a big one for years doing public but have worked physically close to the private team. I think you'll have more flexibility there to do all asset classes and perhaps not feel much peer pressure and have more time to learn other skill sets vs. being in an established special sits shop where pressure is much higher and it's a more process-heavy work style. 

 

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