2 year PE MF program with MBA requirement - potential exits?
Fellow monkeys,
Just accepted an offer to join a PE MF in ~2 months time. Given that this is a 2 year program (with an MBA requirement to progress to a VP-equivalent role), would want some insight on exit opps from people who've been on the same path.
Some background: HYPSW undergrad, and 1st year associate in a BB right now (will be 2nd year if I stay, so yeah, I'm a bit late to the game)
Given my undergrad, I don't think it makes a lot of sense for me to pursue an MBA for the pedigree/brand upgrade/career reset (and also opportunity cost), but a significant amount of peers have told me that the MBA is worth it (is it though...)
Personally think it would make more sense for me to jump to another PE without an MBA requirement (even if it's an MM) post the 2 year program, or even to a L/S HF (I've heard that they are keen for ex-PE candidates), or a distressed/credit fund (have some LevFin experience in my analyst years). And I guess if I decide I don't want to grind anymore I could always go to an FOF or CorpDev role after that...
Thoughts about this?
Just a quick anecdote on hedge funds. I think there is a misconception that hedge funds actively seek out people from private equity. It depends a lot more on the candidate themselves. People who generally do well at l/s hedge funds have known that it's where they want to end up for quite some time and have actively pursued deep value research / followed the markets as a hobby. PE and IB will give you some of the arguably less important skills for a hedge fund (modelling, presentation), etc.. and some of the more important skills (due diligencing the quality of a business and how to interact with management teams.
Having done all three, I can say with certainty that understanding the less tangible skills that make a great hedge fund analyst (deep value, mispricing's, having a behavioral feel for catalysts that will unlock value in mispriced securities, etc...) is not something IB nor PE will be able to teach. These are skills you develop from being obsessively intellectually curious about the markets and investing. The only people I know who have been successful at hedge funds are just that: obsessively curious.
Sorry for the long post on just one facet of what you're asking, but thought it would be worth highlighting.
Just my $0.02 on the MBA.
I get not wanting to give up salary / career progression but man, the MBA was so much fun. It's going to college again but with money. After so many years in banking and PE you have one final shot to enjoy being late 20's / early 30's and take real vacations (not 5 days while on a laptop - month+ long treks all over the world and tied to nothing, zero emails) and expand your network beyond finance.