Lateraling in a dead market (M&A, London)
Like the title says, I'm 1.5 years deep into my analyst stint and I've been entertaining the idea of a lateral move from my boutique for some time now, as I've only been on one smaller deal this past year that actually closed, the rest turning out to be busts halfway through. I've been lucky enough to get missed by the layoffs, but I've even started thinking about whether getting sacked would have been better for me because it would have given me the kick I needed to actually apply myself and look for something else rather than work on filler stuff/incessant pitching ad nauseam.
I've thrown around my CV to various recruiters but I've seldom heard back even after follow-up phone chats on the opportunities in question, and I'm beginning to be nervous about the fact that the longer I stay in this place the harder it's going to get for me to get out. My mid-term goal is growth equity / MM PE so I'd like to get myself to a place that will allow me to have a decent exit (or any at all because I haven't seen anyone from my firm end up in the buy-side roles I'd like to go for). I've spoken to a few PE recruiters that told me PE firms are hesitant to hire from analyst cohorts that started in the last 2 years as they've had mixed deal exposure meaning they haven't received the best training possible at analyst level.
Aside from the deal drought, I also don't really like my firm and it's the other main reason why I'd like to leave. What would my best course of action here be? Wait for things to pick up until I make it to my second full year and then start looking, or look immediately? Should I reach out to people that have done the same lateral move from my firm or would it be a risky move, or should I consider it on a case by case basis (ie see who's still in contact with people at my firm etc)
As always, thanks very much for your thoughts.
Based on the most helpful WSO content, it seems you're in a bit of a pickle, but fear not, there are several strategies you can employ to navigate this tricky situation:
Networking: This is key. Reach out to alumni, former colleagues, and even cold email professionals in the industry. It's not just about finding a job, but also about understanding the landscape and getting advice. You never know who might be able to offer you a lead or introduce you to someone who can.
Recruiters: Keep engaging with them, but also expand your net. Some recruiters specialize in certain areas of finance, so make sure you're talking to the right ones for growth equity/MM PE roles.
Skill Development: Use this time to bolster your CV. If deal flow is slow, focus on developing related skills that PE firms value, such as financial modeling, industry research, or even learning about operational improvements.
Internal Moves: If possible, see if there are opportunities within your current firm that might align better with your long-term goals. This could be a different team or department that's more active.
Timing: While waiting for the two-year mark could traditionally be seen as a good move, in a slow market, it might be worth starting your search now. The process can take time, and starting early gives you a head start.
Discretion: When reaching out to people who have lateraled from your firm, discretion is key. Evaluate the risks and benefits of each outreach. If someone is well-connected within your current firm, you might want to tread carefully.
Plan B: Consider what other roles or industries might be interesting to you if PE doesn't work out immediately. Having a backup plan can reduce stress and open up new opportunities.
Remember, the market can be unpredictable, but with a proactive approach and a bit of networking savvy, you can increase your chances of making a successful lateral move. Keep your chin up and your eyes on the prize!
Sources: Private Equity Associate Regretting Decision, Advice for New Analysts Seeking PE Exits, PE Senior Associate - What next?, IB Analyst Lateral Move Period, Struggling PE Analyst
Would you mind PMing me? Heading towards a similar situation to you so it would be good to get your thoughts / discuss.
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