Wondering if anyone here has successfully switched from public markets investing (SS ER, hedge fund, LO AM) to PE. I get that the lack of deal experience that you get from IB handicaps you but if you are a covering analyst early in your career with knowledge of a given vertical (consumer, healthcare, etc), surely that has to count for something?
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It's not worth it, don't do it guys.
I know the US market is saturated but other developed markets and the EM world seem to have opportunities still out there.
That's not the point.
Could you elaborate on why not worth the pivot?
tl;dr PE sucks.
Way more opportunities to make big money early and quickly in your career in publics. PE as a model is something you can benefit from way more doing as a solo/small GP once you have capital to work with and a sophisticated view you can clearly communicate to investors to raise capital (if you need it), which is something you can easily develop as a skill in public markets. PE at an institution is ass until you reach the Principal+ level and the skills you develop as an ASO/VP, while useful, are not so hyper-specialized that I think they're a better value than what you could develop in an actual risk-on seat (or supporting seat).
Ive personally seen it a few times at small LMM / MM funds post MBA, so not impossible but certainly unlikely. I imagine those at crossover funds have a compelling pitch as well.
Keep in mind it’s currently a brutal hiring market, so this may be a much harder switch now compared to historically.
I knew a few friends who made the transition. Maybe helpful to know why you want to make this transition? Is it comp, culture, or anything particular? You can DM me for further info
I knew a few friends who are thinking about this, but many want to stay in HF space given their passion for high-frequency trading instead of pivoting to PE.
Unfortunately, I think the lack of deal execution experience usually overshadows the advent of industry knowledge and horsepower. There's also not a clear entry point (associate, VP/post-MBA, etc.) given the rigidity of recruiting.
(I don't necessarily agree with it, just sharing my perspective on reality of the PE hiring market).
Thanks for sharing. I'm just kinda tired of being an observer of other people building cool businesses while I just try to predict what they do on the sidelines. Other than entrepreneurship (feel like tech is oversaturated right now) what other finance jobs let you operate a business?
Hmmm, can’t think of much besides buying a business / search fund (over-crowded) and actually becoming an operator by taking a job at a company or start-up.
It’s possible for smaller firms, but it’s the importance of navigating the lack of liquidity that gets you vs publics. Nothing that can’t be learned, but most people don’t want to explain an auction or direct acquisition process to someone.
Wanna swap?
Don’t do it. I regret it every day.
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