IB -> Strategic Finance at MF Portco (tech) -> Investing?
Hi everyone,
It's been a long time since I posted on here, so appreciate that this community has grown stronger over the years for all the prospective monkeys out there. I started my career in Energy IB at a BB down in Houston and had hated the culture and the industry down there. Heavy face-time emphasis with little to no real junior camaraderie. I tried to transfer over to TMT within the bank but it wasn't possible and I wasn't really getting any looks from Tech PE firms. Had an interesting strategy and ops role at a unicorn startup that was at the intersection of energy and tech (think EV battery and manufacturing) come up when I was nearing the end of my second analyst year and truly desperate- startup blew up due to a funding round falling through at the last minute and my offer got rescinded. Ended up not going after them legally as I felt like it wasn't worth it for the minimal upside / I already felt like I fucked up enough by leaving my stable banking job for something that imploded before I even started.
6 months of unemployment later and I land a fully remote strategic finance job at a technology portco for a MF PE firm (we are a unicorn startup 11 years old). I always wanted to be in tech so I was happy to be working in SaaS. I currently live in NYC and my job is more of a strategy / FP&A type role- I've learned a lot about strategic modeling for operational initiatives and packaging / pricing of software, cohort and retention analysis, LTV CAC, and how to influence decision making for go-to market solutions / features using modeling and data. I've also learned about the more vanilla FP&A work (board reporting, monthly close, budgeting). After being here for around the 2 year mark (PE fund is trying to exit but having difficulty), I'm interested in moving towards something a little more stimulating. I don't think I can handle the crazy hours of banking anymore, but something a little more high pressure with higher comp would be ideal (Strategic finance generally pays pretty low). I want to go towards the investing route, hoping that my strategic finance role for a portco could come in handy as I have a lot more operational knowledge on how tech businesses are actually run compared to when I was banking (atleast for SaaS PLG type businesses). However, it's been 2 years since I really touched a deal process beyond helping to run a search for my current firm and engaging with a few banks (most of that was handled by our CFO and probably PE firm besides the random diligence and data requests I would help with). Couldn't find a buyer, and I don't think there's going to be an exit anytime soon (in the next year or so).
Is it still possible for me to recruit for a MM PE firm that does tech transactions or even a Growth Equity firm? Am I better off gunning for VC considering it's been awhile since my last true deal process? I really don't want to have to go back to banking and go through all that bullshit again, but I do feel like I might've fucked up my opportunity the first go-around being that I was young, dumb, and trying to escape at all costs without realizing the opportunities I could have had. I still do a fair bit of modeling and willing to grind to brush up on technicals and LBO mechanics. Trying to also avoid the MBA route considering the costs. I don't know if I'll be in investing long term, but find that it's a skillset that people really value from a career perspective. Strategic finance exit opps feel a bit limited despite the CFO route (quite rare and probably can't be relied upon). Appreciate all thoughts and the help here!
Based on the most helpful WSO content, here's what you need to know:
Your background in IB, combined with your strategic finance experience at a MF PE portco, positions you uniquely for certain investing roles, but there are nuances to consider:
1. Middle Market (MM) PE or Growth Equity (GE):
2. Venture Capital (VC):
3. Avoiding Banking or MBA:
4. Strategic Finance Exit Options:
5. Next Steps:
In summary, transitioning into MM PE, GE, or VC is achievable, but you’ll need to address the gap in deal experience by emphasizing your SaaS and operational expertise. VC might be slightly easier to break into given your background, but with the right preparation and networking, PE or GE is also within reach.
Sources: Breakdown of Post-IB Exit Opportunities, Q&A: 1st year VC analyst (~750M AUM), Lesser known MBA career options? Looking for advice on what to do post-HBS., Breakdown of Post-IB Exit Opportunities, Transitioning from tech to a serious finance job (yes, you read that right)
Bump - interesting question and hope you get some traction with some more seniors folks on the forum. Are you willing to share broad stroke comp ranges? Just curious what figured looked like first couple yrs and how it’d look if you stayed say another 5? Remote seems enticing
Sure,
Senior analyst (1-2 years IB experience is around 110k base +10% bonus + RSU / stock options varies but around $30K vested over 3 years from what I’ve seen in similar portcos)
Manager (2 years of strategic finance experience on top of a couple years of IB experience) is around 150K base + 15% bonus + same stock component
Senior Manager (3 yrs of strategic finance experience on top of IB) is 175K base + 15% bonus + stock
Beyond that you get to VP of Finance level which looks to be around $230-250K base (unsure about stock or bonus for this but likely significantly higher) - path to promotion here seems a bit unclear tbh in terms of number of years of xp
Sounds great, thank you very much. Looks like you’re in a solid spot and wishing you the best as you recruit for your next role!
Mind sharing all in amount of ur current role? I am in a MF owned portco strategic finance role, my all in is $270k which i feel like is very very strong, right?
I’m at the manager level so $175K all in + $30k stock vested over a few years. Mind sharing what firm your work for / title? That’s definitely really high
I am an associate, our portco is worth $15b+ though, which is probably why it is comped so high.
Iusto illo totam animi perspiciatis. Necessitatibus quam doloribus ratione accusantium et qui. Nulla voluptatem molestiae aut numquam tempora ut officia. Ad fuga sed architecto nulla ex.
Minus et aut nemo sed natus et. Ut atque veniam iste in sed et. Accusamus commodi est magni temporibus corporis voluptatem.
Dolores rerum et omnis. Enim maiores a qui natus impedit illum. Quasi eveniet voluptas laboriosam labore mollitia. Occaecati et voluptas libero occaecati voluptatum harum ducimus.
Incidunt ratione ut tenetur et quis quos. Eos dolores rerum autem eaque qui consequatur asperiores vitae. Voluptas ut eos assumenda fugit. Porro nihil beatae rerum nam aut doloribus fuga.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...