How common is it to recruit for a different coverage than your IB one?

Mid BB HC coverage and I am not a fan of the healthcare industry. I got stuck with it through group placement and while it isn't bad as a banker I eventually want to move to a buy-side/investing-type role and I can't imagine doing that in HC. I don't like the ethics of PE in an industry where there are potentially lives on the line. Ideally, I would want to work in Media and Comms or as a generalist.

Is it hard to switch industries when recruiting for PE? Are genralist roles my best bet? Any tips for selling this to headhunters?



 

Should be fine. Try to get experience in HCIT/Services. But maybe think long and hard about PE if you truly care about ethics.

 

I agree… but to me there is a huge difference between discretionary businesses  and those like HC where the demand is driven off necessity. I could get over cutting costs on a donut company but I wouldn’t be comfortable cutting cost and increasing prices in a hospital.


Would love to hear from some HC PE guys about how they justify what they do. I’m sure there is another side to the story but from what I’ve read about with PE in healthcare, even animal healthcare, it seems like bloodsucking on vulnerable populations. Retail HC is cool though when it’s elective type stuff.

 

No real comments for you, just wishing you good luck. That space can get morally sketchy, for sure. I would definitely not want my name next to LBOs of nursing homes. There’s too many other ways to make money.

 
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I’m making the same switch you just mentioned - HC IB > Media PE. It wasn’t too hard of a sell to to the headhunters. I think it’s overstated how intentional/targeted you have to be with headhunters. They don’t care that much since they’ll just be passing your resume along. More up to the firm to decide whether they want to interview you.

HC is luckily an EBITDA driven sector for the most part, and it’s extremely generalist as a sector, so the skill set is decently transferable. In an ideal world, HCIT is what you want to target working in, but HCIT deal flow has been pretty dead (at least in my team), so I’d focus on general services if you can.

I got interview invites at all of the top media funds (SLP, KKR Media, Searchlight, TPG IDMC, etc) plus most tech funds (Thoma, Vista, etc) despite being in HC so I don’t think it’s a huge barricade to getting an interview. I’ll say I am in a top HC team at a top bank, so the bank may be a contributing factor to me getting the interviews though

 

It's disingenuous to claim that PE is entirely detrimental to HC. Multiple studies have examined PE's impact on the HC industry. A notable study by Harvard Medical School and the University of Chicago compared the incidence of inpatient adverse events at 51 PE-owned hospitals with a matched control group of 259 hospitals from 2010 to 2017. The findings showed a 25.4% increase in hospital-acquired conditions such as falls, infections, and blood clots at PE-owned hospitals. At first glance, these results might depict PE as a profit-maximizing entity with little regard for patient care. However, this is not the complete picture. The primary issue with care at PE-owned hospitals stems from the types of hospitals they acquire. Most PE firms target underperforming hospitals in less affluent and less popular areas of the country. These hospitals often serve as safety nets, providing care regardless of patients' ability to pay, and derive much of their revenue from Medicare. They are typically neglected or on the brink of closure, thus presenting opportunities for PE to intervene, make improvements, and profit. Essentially, PE turns subpar hospitals into 'acceptable' ones. While not outstanding, these hospitals are not expected to be top-tier. I would prefer an adequate hospital over one on the verge of collapse. Nonetheless, I believe there should be more stringent regulations in the industry to prevent issues like excessive staff cuts, poor clinical experience among staff, or neglect of equipment upgrades and training in new techniques. Perhaps, you could join HC PE and become the catalyst for this change.

 

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