When is it too late for the IB + PE to go to HF?
Is there a point where a candidate ages out of being able to get to an elite SM HF seat? Obviously 2 + 2 is the most common but do funds and recruiters look negatively upon someone who has done a 2 + 5 for example?
Based on the most helpful WSO content, there isn't a specific cut-off point where someone is considered too old to transition from Investment Banking (IB) and Private Equity (PE) to a Hedge Fund (HF). However, it's generally easier to make the transition earlier in your career. The 2+2 path (2 years in IB and 2 years in PE) is common because it allows for a broad range of experiences in a relatively short period of time.
If you've spent a longer time in PE (like 2+5), it doesn't necessarily look negative. It could even be seen as a positive, as you've gained more experience and expertise. However, the transition might be more challenging because you've specialized in a certain area for a longer period of time.
Remember, every fund and recruiter is different and will value different experiences and skills. It's all about how you leverage your experiences and skills to fit the needs of the HF you're interested in.
Sources: Q&A: Multi-strat HF Analyst, Does HBS 2+2/GSB deferred make sense for HF recruiting?, Typical HF Compensation Targets for post-"2+2" IB/PE hires?, IB->PE->HF or IB->HF
The biggest problem you will run into is not getting credit for those additional years. Nobody is going to make you whole for your lost carry or the fact that you left a VP seat making $600k and pay you an equivalent comp package when you have 0 public markets experience.
So i dont think it is hard but the bid ask between you and your future employer may get too wide unless you plan on leaving PE regardless
Once you're in the public seat, and let's say you want to switch funds after 1-2 years, do other funds hire you at the 1st year buyside comp level again?
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