Advice on ABF (Asset Backed Finance)? vs PE / GE / VC
I erased my words from the page of the public square,
not in anger, not in haste,
but in the quiet arithmetic of silence.
Each hour passed like a blank reply,
each refresh a mirror that showed nothing back.
My questions stood upright, well-dressed, and patient,
but no one came to meet them.
The post became a room with the lights on,
chairs set, water poured,
a host waiting by the door
for guests who never crossed the threshold.
Time echoed in that room.
Even the walls seemed to grow uncomfortable
with how loudly nothing was happening.
I read my own words again and again,
wondering if they were too sharp,
too soft, too careful, too unclear,
if they asked for too much
or offered too little in return.
Silence, however, is a poor editor.
It gives no margin notes,
no red lines, no gentle suggestions—
only absence, only space.
So deletion was not surrender.
It was a closing of a ledger,
a recognition that unanswered questions
accumulate interest in the form of doubt.
I chose not to let that debt grow.
I chose to clear the entry,
to let the page breathe again.
Because an unanswered post
is not just a lack of replies—
it is a small, quiet erosion
of intention.
It teaches you how easy it is
for effort to dissolve
without ever being judged,
praised, or corrected.
I deleted it to protect the question,
not to bury it.
I deleted it so it would not learn
to mistake silence for truth.
Some thoughts deserve more than a void
to push against.
Some words need resistance,
or at least recognition,
to know their own weight.
So I removed it,
not as an ending,
but as a pause—
a folding of paper,
a resetting of the room,
a decision to wait for a space
where echoes are answered,
where presence meets presence,
and a question is allowed
to be fully heard.
Based on the most helpful WSO content, here's a breakdown of your situation and the trade-offs you're considering:
1. ABF (Asset-Backed Finance) vs. PE/GE/VC:
ABF Career Path & Personality Fit:
ABF roles, especially at top firms like Sixth Street, KKR, Apollo, or Ares, are highly regarded for their focus on structured credit and asset-heavy investments. The work often involves underwriting cash flows, structuring deals, and managing complex financial instruments. While this can be intellectually stimulating, it may not align with your desire to "shape the future" or drive growth in a hands-on way.
People who thrive in ABF tend to enjoy detailed financial analysis, risk management, and working with structured products. If you’re more drawn to strategic decision-making and operational involvement, ABF might feel limiting in the long term.
PE/GE/VC Career Path:
PE, Growth Equity, and VC roles are more aligned with your interest in driving growth, making strategic decisions, and helping companies scale. PE focuses on buyouts and operational improvements, while Growth Equity and VC emphasize scaling businesses and fostering innovation. These paths are more future-oriented and involve shaping outcomes rather than analyzing past performance. However, breaking into these roles from ABF can be challenging, as the skill sets don’t always overlap directly.
2. Exit Opportunities from ABF:
Growth Potential in ABF:
ABF can offer strong compensation at senior levels, comparable to or even exceeding PE in some cases, especially in niche or high-demand areas like consumer assets or infrastructure. However, the career trajectory is often more specialized, and transitioning to other areas like PE or VC later can be difficult without prior M&A or operational experience.
Pivoting from ABF to Growth/VC:
Moving from ABF to Growth or VC is possible but not common. Your best bet would be to focus on fintech or consumer-focused investments within ABF, as these areas have some overlap with Growth/VC. Building a strong network and demonstrating a clear interest in these sectors will be critical.
3. M&A as a Stepping Stone:
Pros of M&A:
M&A provides broader exposure to deal-making, strategic decision-making, and operational insights, which are highly valued in PE, Growth, and VC recruiting. It’s a more traditional path to these roles and offers a solid foundation for entrepreneurship.
Cons of M&A:
Transitioning to M&A means starting over in a new group, which could delay your career progression. Additionally, as you mentioned, MF PE may be off the table, and outcomes for Growth/VC are not guaranteed. If you don’t land a strong role after M&A, you risk losing the opportunity to join a top ABF team.
4. AI and Future-Proofing:
AI is likely to automate parts of modeling and execution work in both ABF and PE, but the impact will vary. ABF, with its focus on structured products and cash flow analysis, may be more susceptible to automation. PE, Growth, and VC, on the other hand, rely heavily on relationship-building, strategic thinking, and operational expertise, which are harder to automate. This makes them more future-proof in the long term.
5. Entrepreneurship and Operational Experience:
ABF can provide exposure to operationally complex situations, especially through platform buyouts and asset-heavy businesses. However, the experience is often more financial than operational. If entrepreneurship is a key goal, PE, Growth, or VC may offer more relevant experience in scaling businesses and making strategic decisions.
6. How to Think About the Trade-Off:
Final Thoughts:
Your decision ultimately depends on your long-term vision. If you’re still uncertain, it may be worth exploring a generalist ABF seat to gain broader exposure while keeping your options open. Alternatively, moving to M&A could provide a more versatile foundation for PE, Growth, or VC, but it comes with the risk of not landing a top role.
Sources: Golub Capital type direct lending fund, Best Route to a fundamentally driven HF in Londob: IB vs AM?, Regrets After Switching From IB to PE?, A Few Observations on Investment Banking Exit Opportunities, Why go from BB/EB to MF?
bump
your ABF experience is a sunk cost, don't let it hold you from doing something different
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