CD Exit to PE?
Is exiting Corporate Development to Private Equity (without IB experience) a viable path?
Some Background: Target school, but went into accounting thinking I wanted to be a CPA (I was wrong and regret not going into IB). Transitioned into FP&A/Corporate Finance and moved into a Corporate Development role.
Current position is Corporate Development Manager at a portfolio company with a solid path to Director in the next few years. Day-to-day is a mix of capital raising, strategy/pipeline development, financial modeling, due diligence, and post-merger integration.
Is there any path to PE based on that experience or am I effectively locked out due to not having IB? If I could break into PE, what roles would be a fit and should I try now or wait until I land a promotion to CD Director (2-3 years out)?
Note: T7 MBA is not a viable option right now (need income - expenses locked in with mortgage, kids etc.)
Very unlikely, your best shot will be at the PE shop that owns your portco if they're open to moves. Even doing an MBA is a waste because PE doesn't take MBAs without prior PE experience.
You need IB. You'd probably be looking to lateral in around Associate 2, which sounds like will be a title haircut but probably a comp increase. The market is dead right now but maybe in a year or two. I'd also look at really LMM PE shops (like 10 people firms) in your industry and see if they're looking for anyone.
Thanks for the candid feedback. I'm certainly open to doing spending some time in IB, but I was not sure how common it is to lateral in above an Analyst level. I'm aware the market isn't great right now, but what is the best way to try to pull that off when things normalize?
Are there recruiters who could place someone with my background or do I need to network my way in?
Was happening in 2021 when the market was hot, usually just looking for lateral ASO postings and networking.
If you're serious about it, you'd likely want to move to a F500 company with some name recognition (this could be a good place to stop either way if you're not enamored with PE... decent comp and WLB)
Out of curiosity, why would you want to make this switch?
I know nothing about the group you work at or your WLB. However, your post indicates you're generally in a good spot regarding future promote. Don't know anything about the culture of your group, but a corp dev or corp strat role is usually what folks aim for post-PE unless they're lifers in the space. While I know nothing about what the future will hold, I can only imagine that once I've transferred out of the PE space I'll take a senior role in the corp strat/dev space a reputable group. Why not continue to climb the ladder in your current operation, or focus on a lateral company transition?
Just figured I'd ask. I've seen dozens of folks I worked under leave PE and head corporate, much less so the other way around.
A part of it is a desire to make up for lost time and experience what I feel like I missed by not starting my career in IB and following a more traditional path.
I wasted about 5 years post-UG in unfulfilling accounting roles. I switched roles a bit, but felt lost for most of it. I finally found an area I actually enjoy in Corp Dev and it awakened an interest in me that I wanted to explore further.
I was not being utilized to my potential in past roles. I work with investments bankers and our sponsor on a regular basis now and after exposure, feel like I would best realize my full potential in PE. I'm still hungry and willing to put in the time, but realize I'm ~5 years behind someone on a traditional path. I assume I would eventually return to CD at some point.
Just to be fully transparent, part of the desire is also comp-driven, but I could lateral around in the CD space as well to drive comp. Currently I am banking on a promotion into a role that does not exist yet, so there is always some uncertainty about whether that will materialize.
Gotcha, thanks for elaborating.
In that case, while it'll be tough I'd say go for it. Like you, came from an extremely non-traditional path and am pretty late for the curve of where I work, yet that's how it happened. Can personally relate to for working in spaces that are less than ideal, took me awhile to make the switch over. Nevertheless, I am living proof that it can be accomplished and will also promise you that it's not a 'bad' thing to be working next to people who are 5-7 years younger than you - once you're out of college, no one really cares.
As the other poster said, you'll probably need IB. Do as much as you can to highlight the relevant experience you've had working on deals with bankers, and any additional things you've specifically accomplished that could parallel to you being an asset in that role. It'll be pretty hard to get Goldman out of the gate, but you don't need that to exponentially continue your career in the space. Just continue to do good work in your current role, while making it a priority to get your name out to banks and make any connection you can. The road won't be easy, but if you feel you'll be better utilized in a different space then it's better late than never.
If you want to succeed in this industry, you will - don't necessarily need an M7 MBA and all the other shit that people think is required to succeed. Understand your strengths, focus on improving your weaknesses, and be willing to talk to people. Before you know it, you'll be all the way up. Best of luck.
Exiting Corporate Development to Private Equity without IB experience is possible, but it may be a more challenging path. PE firms generally prefer candidates with IB experience as it is seen as more directly relevant to the skills required for PE.
However, your experience in Corporate Development could still be valuable to PE firms. You have experience in capital raising, financial modeling, due diligence, and post-merger integration, which are all relevant skills for PE. You may need to make a strong case for how your skills are transferable and relevant to the role you are applying for.
Is there a reason CD experience isn't good enough for PE? Is it just because its less "prestigious" than banking? All the tasks in corp dev seem very relevant for PE so its a bit surprising how much tougher it sounds to make the move. Currently in IB and have been leaning more towards a corporate exit though not sure if I want to close other doors and lose optionaliy.
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