From Audit to PE
I am a year and a half out of non-target but top 25 schools in the US. I went for an audit at big4 because I wasn't sure what I wanted to do but while working with a lot of big alternative investment companies, I realized that I wanted to end up in PE as it just makes sense to me. I realize that it is a big uphill battle to get to PE, which will require MBA. My goal is to get to the top 10 MBA programs, and I am considering what additional experience to audit would make sense. I see two options: 1) wait for the M&A activity to pick up and go to FDD, once hiring starts 2) I got a job opportunity at Appolo Global Management as a fund accountant on a credit side. What would you suggest be the best experience for me to eventually end up at PE? Thank you for your opinions.
Based on the most helpful WSO content, transitioning from audit to PE can indeed be quite the journey, but it's not impossible. Here's a breakdown of your options:
1) Transitioning to Financial Due Diligence (FDD): - FDD can be a strategic move as it gets you closer to the transactional side of the business. - You'll gain valuable experience in understanding the financial health of companies, which is crucial in PE. - This experience can be a good stepping stone and make your profile more attractive for a top MBA program.
2) Working at Apollo Global Management as a Fund Accountant: - Apollo is a well-respected firm in the industry, and having its name on your resume could be beneficial. - The role would give you exposure to the credit side, which is valuable, but it's not direct investing which is the core of PE. - However, fund accounting is typically back-office work, which may not be as directly transferable to a front-office PE role.
Considering your ultimate goal of breaking into PE, here's some additional advice: - Networking is key. Start building relationships in the industry as early as possible. - Consider gaining experience in a role that's closer to deal-making, such as investment banking or consulting, which are more traditional feeders into PE. - A top 10 MBA can be a game-changer, especially if you leverage it to transition into a front-office role that's more aligned with PE work.
Ultimately, if you're set on PE, you might want to prioritize experience that aligns closely with investment analysis and deal execution. While FDD is more relevant than fund accounting, neither is as directly applicable as experience in investment banking or strategy consulting. Keep in mind that PE firms typically look for candidates with a strong understanding of how to evaluate and execute investments.
Sources: Just got laid off from my 3rd PE job in 4 years - help!, Regrets After Switching From IB to PE?, Can someone break down PE Associate exit opportunities?, Q&A: Former MBB Consultant, [Experience] Road to PE - Investment Analyst in a MegaFund
Hey I don't have any direct experience but have had friends who started in audit that had the following paths: Audit to senior > FDD senior > family office (not investment team, but helped with due diligence and did compliance/back office work) > PE 1B aum (same family office team launched fund) senior associate to MD mostly over due diligence and ops support to portcos; another did audit to senior > middle office diligence / valuations / reporting role > LMM investment team. I don't think an MBA is necessary though would absolutely help, but I think transitioning to FDD as soon as possible is the best move. There are multiple firms (example Main Street Capital) that hire audit/FDD out of big 4 to due diligence and valuations roles and transition the top performers to the investment side. Hope this helps!
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