Headed to HBS from pretty traditional PE.
What should I explore? A little disillusioned by PE, although not totally ruling it out. What PE adjacent fields should I try to get into after my MBA? Reasons for disillusionment are mostly about saturation of market / lack of differentiation, rather than WLB.
I came from MBB and can always go back to make ~$250K, so that’s my minimum baseline.
I’m not feeling like public markets are for me - that strategy also feels increasingly tough.
Credit, infra, insurance all seem to have tailwinds but I don’t know much about them. Search fund is on the able too.
Not super interested in corp dev, startups, strategic finance, etc.
Would love to hear any and all thoughts!
You worked in MBB and PE and going to HBS... the best you can think about spending your summer is... PJT/Evercore?
Well, that’s the purpose of this post - to figure out what else might be more appealing...
Consider doing a search fund. You have a nice background for it
Yes, definitely on my list of things to explore. Not ruling it out, but 1) also feels like a saturated space - every MBA is trying to do this and 2) not sure I have the stomach right now to take minimal income for a few years. Thanks for the suggestion though!
Incredibly saturated market. Have seen some interesting acquisitions though from recent HBS grads (saw some recently acquire a medical group with MBB backgrounds).
Can you say more on why you want out of PE? The things you mention (saturation / differentiation) seem like market level dynamics , how do you see this tying to your career?
Are you getting at you worry about opportunities for progression / comp ceiling as the industry progresses ?
It feels to me like structural dynamics, not temporary market dynamics. Too many funds chasing the same deals, too many people chasing the same few spots. I don’t know what my differentiation is other than being generally competent and intelligent. Same thing at the fund level.
Also, a knife fight to get promoted. Feel like there must be something a little more greenfield. What PE was 15/25 years ago maybe…
Dude, if people knew what the new thing is that PE was 15-20 years ago, they’d all be going to it and nobody would be telling you on an internet forum. You sure you got into HBS?
Your career is pretty de-risked, why are you ruling out startups or strategic roles in corporate? Or join a startup hf / pe
Yes I think a startup PE fund could be interesting to be honest. Just a matter of finding the right niche.
Less keen on corp dev/startups because I enjoy conceptually the work in PE/ afraid of career stagnation if the startup doesn’t take off
what you need to be doing now is taking on more risk/excitement/enjoyment in your career. Going to Business School is only going to set you up for the same risk averse roles you're coming from, especially in the current climate. IMO, do a serious evaluation of the money you are about to spend and do in depth research on the niches/roles that actually sound interesting to you. Unless it's a well pipelined role, Business School is going to do little other than the Harvard effect.
Secondaries, first time funds, hedge fund, etc
If you do IB, I would just drop out of b school and save the cash.
I am sorry to comment late.
But isn't to transition to HF you need IB+PE background? MBB+PE isn't available?
If you're willing to put the appropriate amount of time into it starting now, one interesting path is the large family office route.
I'm not talking about a place with a couple hundred million. I'm talking about multi-billion, where half your job is strategy and thinking about what to do, not just the execution of what got decided.
These aren't places that post jobs. You have to be referred or create your own warm introduction.
The good news for you is that you check every box possible for 'strong candidate with a history of institutional pedigree'. MBB to private equity to HBS lacks no luster.
If you can present as intentional and sincere about an interest in working in "closely-held companies" that operate with a "longer-term view" and are "free from the pressures of institutional ownership" and can "avoid the short-term approach of the public markets" where "a mindset of stewardship is valued", you will be striking the right notes.
You need to meet classmates and professors and be consistent with this theme, asking them what they know that would be good for you to read or learn and who they know that would be good for you to speak to.
Do the same thing with those people that you meet. Ask good questions, follow up in a way that sounds natural and makes you look like a thoughtful and competent person, and eventually ask for introductions or recommendations.
You have almost two years. You can get started now. Ideally you get an internship for the summer before school. You should definitely get one for the summer between RC and EC.
This path might not be interesting, but since it's a less common one and since you have a good profile for it, I'm putting it on your radar.
This is super interesting. I’ll definitely consider this and look into it more seriously. Why do you think this is more appealing than PE? My understanding is that family office comp is pretty variable and generally lower than PE.
In addition, aren’t you in some senses competing for the same deals, just perhaps with a lower hurdle to clear in terms of returns and without the need to raise capital?
Wouldn’t mind chatting more if you’re interested, I can DM you.
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