In most cases, will going international work against your long-term career?
I'm struggling pretty hard writing this off, because I don't know if I have considered all the variables, and it also kind of goes against my gut feeling.
I'm not a know-it-all and am kindly requesting a candid discussion based on your experience (if it applies).
context) For a while, I had the curiosity to entertain the idea of going to East/Southeast Asia, or Europe as a junior private investor (growth/buyouts).
reason1) However, after reading the posts here, I've come to understand that Europe/Asia have local talent that speak their language, have amazing training, and have family/engrained connections that will ensure that they can source proprietary deals/fundraise (and move up family businesses or in the few private investing seats).
reason2) I have also read that private equity is smaller/less successful in these places, because most national megacorps (in each country) that are family-controlled have little interest in selling their companies, and seldom entertain buying smaller ones from mmpe shops.
reason3) It seems once i go abroad, i will have a very tough time coming back into the US because of a supposed experience discount abroad, let alone the lack of deal reps/expertise in us verticals.
conclusion) So based on this information, it seems like leaving the US (as someone with no connection to these places) + (the supposed structural disadvantage of pe outside the US) would be a very foolish decision.
ask) My question to you is, would you draw the same conclusion about the unappeal of working abroad? Do you largely have the same premises/justification, or are there other variables you are considering?
Based on the most helpful WSO content, your concerns about pursuing a private equity career abroad are valid, but the decision ultimately depends on your long-term goals and personal circumstances. Here's a breakdown of the key points to consider:
Local Talent and Connections:
You're correct that Europe and Asia have strong local talent pools with language skills, cultural understanding, and established networks. These factors can make it challenging for outsiders to compete, especially in sourcing proprietary deals or navigating family-controlled businesses. Local connections often play a significant role in deal-making and career progression in these regions.
Structural Challenges in PE Abroad:
Private equity markets outside the US, particularly in Asia and parts of Europe, are often less developed. For example:
Repatriation Challenges:
Returning to the US after working abroad can indeed be difficult. As noted in WSO threads, professionals who spend 2-3 years abroad often face challenges re-entering the US market due to:
Exceptions and Opportunities:
While the challenges are real, there are exceptions:
Conclusion:
Your reasoning is sound, and for most professionals without strong local connections or a clear strategic reason to go abroad, staying in the US or a major global hub like London may offer better long-term career prospects. However, if you have a compelling personal or professional reason to work internationally, it could still be a rewarding experience, provided you carefully weigh the trade-offs and have a plan for re-entering the US market if needed.
Sources: Q&A: Megafund Asia Private Equity, Working Abroad - Regrets/Benefits, Non US/Europe IB/PE Overview, 6 Things to Consider Before Accepting an International Work Assignment
Bump, hope you get a good answer
As background, a spent a couple of years in HK / SG early in my career (as a banker, not investor). I'm white and grew up in a small city in (a fairly remote part of) the UK. So, no cultural background.
First, I think it's very low likelihood that you'll find a role in that part of the world unless you have some sort of language or connection already. Like you say, there's exceptional local talent, and language capabilities are highly sought-after / borderline essential.
Second, as a junior anywhere you aren't going to be sourcing deals; I mean if you can, fantastic, but it isn't going to be the expectation. Don't set yourself that benchmark as a measure of whether to go abroad.
Third, yes it's true that IB fee pools are smaller and PE ticket sizes are smaller. I don't think that's a reason not to go, especially as a junior. You have a long career ahead of you and a lot can change. You might learn a little less than at a shop in the US, but you'll still get plenty reps, and it's a dirty little secret that even at a place like KKR or CD&R in New York you can spend a couple years or more as a junior (or senior) and still not close a deal.
Fourth, it's almost always the case that moving team / sector / geography / whatever will carry a step back in seniority / progression, as well as comp. Honestly I think this is one of the most misguided things especially junios worry about. We'd all prefer more money than less money, but we're still being paid in the top 1%, and another dirty secret is that Principals / Directors can spend years and years longer than expected to get promoted for the fairly arbitrary reason that there's just too many seniors at the level above.
Fifth, the couple of years I spent overseas were, personally, two of the best of my life. Hard not to like living on a tropical island, but it was such a remarkable (and very fun) experience in helping me grow and see more of the world (and get paid a lot of money at low, low tax rates to do it).
In sum, I think you're going to find it extremely tough to find a role I think. But if you do, I'd grab it with both hands. When you're 70 you aren't going to care / remember the date you made Partner / blah blah. But you'll remember your time living overseas in a totally new environment. And life is so unpredictable I try not to plan and game theory life too far into the future
Thanks for your honest thoughts.
Ok, so it seems consensus is that it's a bad option if I only care about money/promotion visibility. Although, I'm indifferent towards travel, so the new environment wouldn't be enough of a factor to be worth pursuing. And thank you for sharing the dirty secret, I didn't know that. Appreciate the wisdom on this attitude being misguided, I'll try to get rid of this stubborn mindset.
Do y'all have any more perspectives in the community? Otherwise, content with the confirmation from WACCula
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