MF to Smallish HF?
Currently ASO at MF HF type credit arm. Life is really not so bad. I work manageable hours not like IB/PE. I get paid well. It is moderately intense but again manageable and sustainable. I don’t have many complaints about most core things everyone seeks in a job. Except for the following:
- Bloating at mid-level means upward promotion opportunities may be tough/limited
- Opaque reward system on comp and who they ultimately decide to promote. Not very eat what you kill, sort of just perception of you and how much you get vouched for/how much you work/volume of speaking in meetings
- When making hires for big or important roles, they basically always hire externally which is horrible for 1) internal incentives and motivation and desire/willingness to go the extra mile and 2) speaks to how they view their own internal people and training system…
THAT SAID, my point/question to you is, why would I NOT go to a smallish ($1-5B AUM) flexible HF investing across the cap stack and mandates public/private, credit/pref or converts/common, etc. where the team is lean and you can
- Understand black and white why you get paid what you do/eat what you kill
- Grow in line with the firm and AUM
- Deal with less institutional political bullshit to the point where people make recommendations to appease senior peoples’ investing strategy based on current market environment rather than their own
- Have better transparency into how you’re being evaluated (somewhat redundant with point 1)
- Have a better learning experience because you aren’t navigating politics and admin bullshit but are just focused on your REAL job ie investing
I acknowledge people have different risk tolerances and some prefer “stability” (perceived) over upside but I’ve already got the MF on my resume and if our fund gets fucked I’ll get paid severance and either get a new job or get an MBA or save prudently.
My reason for posting this is because I’m evidently growing a perspective and becoming biased and am super eager to hear others’ perspectives whether they align with or oppose mine.
Thanks everyone for your input! And as a final comment I also acknowledge grass always greener and I’m seriously lucky to be in my seat.
I did this exact same move and as you rightly call out, grass is always greener elsewhere. I don’t regret it, but the career stability of a HF job is very slim. Probabilities are against you but the work itself is more interesting and the payout could come sooner, but on a risk adjusted basis, the PE seat likely yields better outcomes.
The under appreciated aspect of staying in PE is that it provides more tangible learning experiences to going to a corporate role (cfo, corpdev, strategy, etc.) and it’s easier to convince the next place that you have that skillset.
Thanks for the response. Can you give more detailed info on your anecdotal experience with stability and comp and how it all worked out for you, as well as how you’re viewed from other places if you theoretically did want to leave for whatever reason or were forced out?
Was paid 400-500 in MF PE and for the past few years have been in the 500-1M range. My range is a lot wider now with probably something like 600 as a floor to 1.5-2M as the ceiling (unless we have a massive year at which point it can be higher).
Career stability isn’t great. At the end of the day, all funds are a few down years away from massive amounts of redemptions so that’s just the reality of the job/industry. So it’s cliche but you’re trading off stability for higher cash reward sooner rather than later vs PE/PC.
No idea how other jobs/funds would view me. Not sure I want to go anywhere else given the ramp required every time and the incremental dollar is worth less and less with each passing year.
How big is the AUM of your fund? Is $1B-$5B considered small?
I’ll just say it’s >$1B
Itaque et asperiores et aut accusantium. Aut ipsam accusamus numquam blanditiis.
Omnis voluptas blanditiis similique occaecati sapiente sed. Itaque eveniet molestiae quos et distinctio pariatur et. Nemo placeat corrupti libero aut.
Ut sequi voluptas ad quidem tempora sint. Nulla error earum placeat possimus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...