Dumb to move from PE at FO > RX IB?
I never did banking, went from corp M&A to PE at a FO. Currently a Sr ASO. Been interested in RX since college but wasn't really competitive for recruiting at any of the T1/2 banks (sub 3.5 GPA, non-target). Given the current climate it seems like a good place to be and it's been tough to lateral to a true PE fund so I'm back to thinking about it. Now that I've got 5+ years of FTE would it be a dumb move to try? Would I even be a competitive candidate in my late-20s?
Transitioning from PE at a Family Office (FO) to RX IB isn't necessarily a "dumb" move, but it depends on your long-term goals and how you position yourself. Based on the most helpful WSO content, here are some key considerations:
Interest in RX: If you've been genuinely interested in restructuring since college, this could be a great opportunity to align your career with your passions. RX can be a fascinating field, especially in the current economic climate, where distressed opportunities are more prevalent.
Competitiveness: With 5+ years of experience, you may face challenges breaking into RX IB, especially at top-tier banks. However, your PE and corporate M&A background could be valuable if you can demonstrate strong financial acumen, deal execution skills, and an understanding of distressed situations. Late 20s isn't a dealbreaker, but you'll need to show you're committed to the transition.
Market Climate: The current climate does favor RX, as downturns often lead to increased deal flow in this space. This could make it a strategic move, especially if you're struggling to lateral to a traditional PE fund.
Challenges in RX: Keep in mind that RX is often pitch-heavy, with fewer repeat clients compared to M&A. Promotion paths to MD can also be more challenging due to the limited number of RX deals, as highlighted in WSO discussions.
Exit Opportunities: RX can open doors to distressed-focused PE funds or other specialized roles, but it may narrow your options for generalist PE roles in the future. If your ultimate goal is to return to PE, consider whether RX aligns with that trajectory.
In summary, it's not a "dumb" move if RX aligns with your interests and you can leverage your existing experience effectively. However, be prepared for the challenges of breaking into the field and consider how it fits into your long-term career goals.
Sources: Pros & Cons Summary - Post-MBAs in Restructuring (RX) - any regrets?, Choosing RX over M&A -- anyone recommend this?, Can I transition from restructuring to regular private equity?, Bain Capital PE vs PJT RSSG, Moving from Asset Management into IB / PE
Why do you not want to stay at your seat? Is comp not good? What about the work and people? Thought about lateraling to another FO?
Comp is meh (as it is for most FOs) and work has gotten boring. I think RX has a strong tailwind to ride and have been interested in distressed/special sits roles but don't have the background for it/can't competitively lateral from my current seat so it seems like getting banking on the resume for a couple of years could solve that problem.
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