How likely would it be to network for a position at an endowment/pension fund after 2 years on the sell-side? Their work is mostly manager selection (so a low let quantitative), but some funds do primarily/secondary investments or co-investments so there seems to be optionality.
Has anyone done a move like this or know someone who did? What was their day-to-day like and did they like the move after 2 years of banking?
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The move is very possible. Lots of people move from IB/PE to endowments and pensions at all levels really. Day-to-day would be mostly focused on deploying a capital budget in your respective asset class or asset classes, and meeting managers/GPs. Investment work you'd be doing depends quite a lot on the team you're in and the type of endowment or pension you're in. At a smaller university endowment you'd likely be focused on manager selection/primary commitments in one or multiple asset classes, while at a Canadian pension like OTPP or CPPIB your work would depend on the team you're in. Their direct PE/growth teams would be doing direct deals while their funds teams would be doing primaries.
Work life balance generally is quite good for endowments and pensions but it depends on the type of organization and work you're doing. If you're doing direct PE deals it can still be quite sweaty.
Your questions are pretty broad so this is just a quick overview.
I appreciate the insight! Yea I left the prompt a little open ended as I just starting thinking about E&P as an exit opp. My previous job was at a Hedge Fund of Funds where the responsibilities were strictly portfolio management. But looking at things now perhaps doing something but more focused on one Endowment vs multiple (which was the focus of the last place) could be a better fit.
If you happen to know, what are some of the common responsibilities an analyst/associate would be doing at either a university or healthcare endowment? I'm calling these two specifically out as they tend to have a larger AUM base which people say allows for more opportunities to invest into different asset classes.
Currently attempting a similar move, so don't have on-the-desk insight but have spoken to a lot of people through networking. The day to day generally consists of some combination / subset of:
All of the people I've spoken to that made the jump from IB or similar have enjoyed it so far, with highlights being the far superior WLB (40-50 hour weeks) and friendlier culture.
Yea the pro's seem to check out, everyone at my last job was out the door by 5:30. Since you're looking to make the transition, the one question I have for you is do you think you'll regret the decision later on? Personally I'm kinda torn on leaving a seat like mine for something that seems much slower paced? Was this something you've thought about to or have given some consideration? I feel like we worked so hard and committed so much of our time (and frankly our youth) to be in these seats only transition to something else. Could just be me with these thoughts tho.
Can't speak for others, but I don't think I'll ever regret the decision. I spent a couple of years in PC after my analyst stint, and came to the realization that everyone more senior than me was working almost as many hours as I was, with marginally more control over timing on deliverables but much greater stress in having to actually go out and source / close deals. Felt really hopeless in a "damn it really doesn't ever get better" kind of way and burned out hard as a result (to the point of leaving without a next role lined up).
At the end of the day, a career has to last 30+ years, and I figured if the prospect of making it through just the next 1-2 was daunting then a change was needed. A huge part of why the E&F / broader allocator space has appealed to me is that the WLB is leagues better and you get to retain a bit of comp upside as MDs at big enough endowments can still clear high 6 / low 7 figures.
What is the most common path to working at a FoF/endowment fund? Do people typically do banking -> PE -> FoF?
The most typical paths I've seen in my networking are either IB > endowment, OCIO > endowment, or endowment straight out of undergrad (usually with their alma mater). That's not to say that other paths aren't possible, in fact I've seen a few unconventional paths here and there, but would say those three are far and away the most common.
From what I've seen, lot of IB -> GE/PE -> Endowment or IB -> alma mater endowment
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