Secondaries to HF?
Hi! Ignore title, currently work as a 1st year associate primarily covering GP-led transactions (Continuation Vehicles, Strip Sales, GP Tenders) in a PCA type secondary advisory role. I’m interested in Hedge Funds down the line and was wondering if a switch after a top B-School program would be possible
Understand that secondaries is a bit nuanced, but CV transactions in particular are akin to “M&A lite”. Just wanted to ask the broader forum here for any thoughts. Answers either way are much appreciated Thanks!
Hey there! Based on the most helpful WSO content, it's definitely possible to make a switch from a secondary advisory role to a hedge fund after a top B-School program.
In your current role, you're gaining valuable experience in GP-led transactions, which can be quite transferable to a hedge fund environment. The analytical skills, understanding of financial structures, and ability to evaluate investment opportunities will serve you well in a hedge fund role.
However, it's important to note that hedge funds can be quite different in terms of investment strategy and day-to-day operations. You might want to consider gaining some direct experience in public markets, perhaps through internships or part-time roles, to complement your private markets experience.
Also, networking will be key in making this transition. Start building relationships with professionals in the hedge fund industry, and leverage your B-School's alumni network.
Remember, it's not just about the switch, but also about finding the right fit for your career goals and interests. So, take your time to research different hedge funds, their investment strategies, and culture.
Good luck with your career journey! Remember, every step you take is a step towards your goal. Keep swinging from vine to vine, and you'll get there!
Sources: Q&A: Hedge Fund Allocator at a $2B+ E&F, Why is fund of funds a thing, Hedge Fund Operations Role Good Place to Start After Undergrad?, https://www.wallstreetoasis.com/forum/consulting/managed-to-pivot-into-ma-advisory-in-a-small-boutique-instead-of-tech-consulting?customgpt=1
Appreciate everyone’s answers. Well noted, thank you
In all fairness the investments you make aren't that insanely dissimilar beyond liquidity. From an investment perspective both GP led secondaries and public equities are looking at minority equity positions in companies that they won't have operational control of with some input to operations depending on interactions with management / board.
That being said, there are enough people from MM / UMM / MF PE trying to move to HFs that its going to be an uphill battle unless you are at a super namebrand platform (ie; megafund normalway - BX Strategic Partners, Apollo S3, KKR secondaries, Ares - Landmark, etc.) given general views in industry of secondaries shops.
Why not make a move first to vanilla PE? Have seen people switch by taking a haircut on brand, but after that you would have the profile coveted by SMs.
Nearly impossible and different track. Barely any overlap day to day and I haven’t seen any move like that in 10+ years.
How so?
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