Advice Needed
I am currently working at a special sits fund as an analyst. I am considering moving to a top RX shop (PJT, Evercore, HL, LZ, Moelis, PWP), but am a bit conflicted.
On the one hand, I work on something that is somewhat niche for most of my time and I feel as if working on for another year will not be beneficial to my career. I have hit the point of stagnation largely from a learning perspective. I have learned corporate credit through it, but do zero modeling and am worried that I will become an associate and realize I just did not get adequate modeling experience, etc. I also think that if I decide to do PE/HF again rather than credit, it will give me better opportunities just because of how associate recruiting is structured (eg: better to be in IB than Bain Cap Credit for MF PE). I do realize I can learn a lot of modeling on my own, but think works reps will be best.
On the other hand, my boss is very dependent on me and gave me an opportunity in my life. My group is very small and so there will be real consequences to the group if I left. My current shop has terrific WLB (50-70 hours) and probably a 25% haircut to last year's analyst IB record pay, but in line with traditional IB pay (eg: other years). Long-term pay is not as good as other places, but that's all relative. However, if I were to stay over 3 years - my earnings differential between 2 years of IB and PE would be ~$250K so real money especially given down market. People are nice as well. Culture is great. My main focus is on the experience/setting me up for long term success and how that gives me an opportunity to move to MF PE/HF (and if i am interest). I have worked there for just a little over a 1 year but they generally want people to be there a min of 2 years. When I spoke with headhunters, it seemed that there was some resistance to showing me buyout opportunities for the associate level - unclear as to why given my broader background but largely a function that I do mostly credit.
Basically feel a bit bad about leaving after a year as opposed to in another 6 months?
Really appreciate that advice.
Few things to think through:
- It sounds like you're in a spot that most analysts would kill to be in. But I'm not sure how easy the move to another fund would be without a big brand name.
- sounds like a great lifestyle spot, something to consider in your thoughts. Having access to the top of the house gets important as you move up.
- if the shit hits the fan, you might get busier and get the experience you want where you're at.
If you're truly that close with your boss, or if you have a mentor there, I would have a conversation with them. Tell them what you're looking for, see if they have a plan for you. No need to leave if they can adequately explain where they see you in a few years and you're cool with that plan.
I don't have any great advice because it wasn't my path. I have a few junior guys that flipped from the buyside and are moderately happy with the switch but miss it.
I would sit down, write out a plan for yourself and steps to achieve what you want. Start at the end goal and work backwards. That way you have something to talk about with your boss.
I wouldn't worry too much about "work reps" in modelling either. Yeah, it's helpful but you can do that on your own. Or, I would just ask your boss if you can get more involved in that part of the underwriting process.
In summary, figure out exactly what you want, figure out the right steps, have the conversation with your boss (it's always better to leave "right" at smaller shops) and then evaluate with more information.
Thanks for the thoughtful advice.
Truth is I am not entirely sure where I want to be in 5 years, but I do know I very likely will not be doing what I am doing. Maybe this is a stretch from reality but I am interested in PE because I like the idea of being an operator. I felt like if I went big time MF PE and just held on (much easier said than done) I could do well if I make to principal and got a small slice of carry on a massive fund - probably very close to retirement money if I stick around for that to vest.
I previously had a discussion around expanding my role to do more corporate opportunities and while I personally felt it took longer (eg: a month or so) than it should have given I feel relatively small ask, I do have that ability. However, I feel like my boss does not truly want me working on those at the given moment since we need more people. In truth, it just seems like my ability to get those reps is limited and I am worried about becoming an associate with no modeling reps and all of a sudden there being high expectations there. I can do an LBO but figure I need to learn more there.
The firm's brand is solid, but definitely not a household name - has real AUM >$10bn.
I feel loyal to my boss because he gave me an opportunity it my life and realize that the group may have some real struggles if I leave. I also realize that this is a business and always question whether "loyalty" for employers is naive.
That all makes sense.
I would sit and figure out what you want (what I thought I wanted has changed a lot recently, so it's not set in stone). I'm naturally more conservative, so I'd say to try and get all of your thoughts out before making a move, along with the different implications of those moves.
The good side of being at a special sits fund at the start of a recession is that you'll likely get strong experience working through complex investments and problems, which should be helpful for future recruiting. To your point, if you're not in the right seat there, you may feel like you're missing some things.
There is always the MBA option if you feel like you're stuck, in the future. If you want to be more of an operator, the consulting route might be more interesting for you.
I may get roasted for this, but I feel like the importance of technical modelling is way overblown. Being able to create one is table stakes, being able to thoughtfully work through assumptions is where the value is added. For example, if the business grows 3% a year over the next few years, what will that actually cost and how will that growth actually occur, does the product or sales force need to change, what investments need to be made. That is helpful insight, inserting a toggle isn't very helpful. You'll never be "right" but you can use the model as a tool to think through the business.
bump
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