NY to APAC Pivot

Incoming SA at an EB (QAT/LAZ/CVP). Long-term want to end up on the buyside (L/S, activist, or credit) and have been going back and forth on whether to stay in the States or eventually move to Asia. Main thing I can't find much on: how hard is it to get a buyside seat in Asia coming from IBD in NY? Does it make more sense to break into buyside in NY first and then try to relocate, or can you go straight from banking to an Asia-based fund?

Also curious which strategies actually have a decent opportunity set over there right now. And more broadly, given how much capital is expected to flow into Asia over the next decade, does that actually translate to more fund seats or is it still pretty thin? Would appreciate any color from people who've done this or know the market well. Thanks!

9 Comments
 

Based on the most helpful WSO content, here's what you need to know about pivoting from NY to APAC for a buyside career:

  1. Challenges of Breaking into Buyside in Asia from NY:

    • Moving directly from IBD in NY to a buyside seat in Asia is tough. Demonstrating interest, knowledge of the local market, and often meeting local language requirements are significant hurdles.
    • Many local SEA/China funds prefer candidates with prior experience in the local market. Some funds outright won't consider candidates without local banking experience.
    • However, having US training and deal experience can be an advantage. US-trained candidates are often perceived as having more complex and streamlined deal experience compared to local analysts in HK/SG.
  2. Strategy: NY Buyside First vs. Direct Move:

    • Breaking into the buyside in NY first and then relocating to Asia might be a more feasible path. This allows you to build a strong foundation and network before transitioning.
    • Directly moving from banking in NY to an Asia-based fund is possible but requires significant effort in networking and positioning yourself as a strong candidate for the region.
  3. Opportunities and Strategies in Asia:

    • The opportunity set varies by region:
      • China: Growth/VC-style deals dominate, though some funds like KKR are trying to shift towards buyouts. Local funds often require native Chinese speakers and strong connections.
      • Japan/Korea: Larger buyout opportunities are more common, with funds like KKR and Blackstone focusing here.
      • Singapore/HK: These are financial hubs for SEA, with a mix of IPOs, fundraising, and M&A activity. Knowing a SEA language is a plus, especially for Singapore.
    • Strategies like L/S, activist, or credit may have opportunities, but the market is still relatively thin compared to the US. For example, Blackstone has faced challenges in getting deals approved in Asia due to global IC constraints.
  4. Future Outlook:

    • While significant capital is expected to flow into Asia over the next decade, this doesn't necessarily translate to a proportional increase in fund seats. The market remains competitive, and local expertise is often prioritized.

Key Takeaways:

  • If you're serious about moving to Asia, start building connections early and demonstrate a strong understanding of the local market.
  • Consider breaking into the buyside in NY first to strengthen your profile before transitioning.
  • Be prepared for the challenges of language and cultural barriers, as well as the competitive nature of the market.

Hope this helps you chart your path!

Sources: Q&A: Megafund Asia Private Equity, PE Scene in Asia, What you need to know about IBD in Asia, Non US/Europe IB/PE Overview

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

best bet is probably the MMs in asia. SM would be harder and might focus more on experienced hires

 
Most Helpful

In my experience working in APAC, the guys are extremely homogenous. IMO, the top university in Hong Kong, China, Korea, or Japan may even have more merit than a Harvard Grad. Deal flow is slim, so teams put in a ton of grunt work on pitches to win mandates, and that culture flows into recruiting. The interview processes have more interview rounds and in cases like Korea and Europe kids just can't get SAs right away and have to do multiple cycles of internships for almost a year just to get their foot in the door. Sort of a contrast in the US where the recruiting timeline is just ridiculously so early that undergrad experiences don't matter as much as in APAC. 

Guys do tend to have more pride (or ego) that they can get the job done as the recruiting processes and work itself is more shit.

 

Happy to clarify. Feel free to poke any holes if you think I'm missing something.

my underlying premise hinges off my core assumption that with current geopolitical fragmentation + current administration, investors would likely seek to hedge risk/diversify from U.S. assets. On top of that, booming middle class in India/China + Asian countries finally experiencing robust growth in shareholder protections and slashing red tape (JPY/KOR finally welcoming activists to streamline homegrown companies, Vietnamese economic miracle, etc.) were all macro tailwinds that I believe substantiated this view. If there's anything I'm missing, or if I've jumped the gun on smth pls let me know lol I just want to learn as much as I can

 

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