Senior heading to a top banking program. If possible, would rather get started at a hedge fund right after banking. Do top SMs only recruit from MF PE associate classes? Would I be significantly limiting the funds I could get looks from by not doing PE after banking? Thanks.
| +89 | Nothing to do at work & bored to hell | 9 | 1d |
| +67 | Do people over-index on 'moats' | 22 | 1d |
| +53 | Predicted Net Worth in Trodden Finance Path by 60? | 20 | 1d |
| +44 | Biggest (avoidable) failures in PE Investments? | 25 | 1d |
| +38 | Why is ROIC never really a topic when looking at companies IRL | 11 | 5d |
| +24 | What do you think of PE Value Creation Careers in 2026? | 7 | 17h |
| +18 | LT Career Path after MF PE Associate Program? | 5 | 2h |
| +15 | Honest opinions needed about lateraling | 5 | 15h |
| +12 | NY LMM PE Recruiting | 3 | 2d |
| +12 | How to approach Buyside Recruiting | 3 | 6d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Based on the most helpful WSO content, top single-manager hedge funds (SMs) do not exclusively recruit from mega-fund (MF) private equity (PE) associate classes. However, skipping PE after banking could limit your options depending on the specific hedge funds you're targeting.
Some key points to consider: 1. Hedge Fund Preferences: While certain hedge funds value the skills developed in PE (e.g., due diligence, understanding business quality, interacting with management), others prioritize candidates with a strong passion for markets, deep value research, and a behavioral understanding of catalysts. These are skills that can be developed outside of PE.
Direct Transition from Banking: It's possible to move directly from investment banking to a hedge fund, especially if you demonstrate a strong interest in investing and have a track record of market involvement (e.g., personal investing, stock pitches). However, this path might limit your access to the most competitive funds, which often prefer candidates with PE experience.
Fund-Specific Requirements: Some top SMs may have a preference for candidates with MF PE experience due to the rigorous training and exposure to high-quality deals. That said, others are more flexible and focus on the candidate's overall fit and investing acumen.
Your Strategy: If you're set on hedge funds, start building your investing knowledge and network early. Tailor your story to highlight why you're skipping PE and how your skills align with the hedge fund's needs. This can help offset any perceived disadvantage from not having PE experience.
In summary, while MF PE experience can be an advantage for certain top SMs, it's not an absolute requirement. Your success will depend on your ability to demonstrate the skills and passion that hedge funds value.
Sources: Are top MFins target programs for Private Equity firms?, 2 year PE MF program with MBA requirement - potential exits?, https://www.wallstreetoasis.com/forum/private-equity/a-guide-on-how-to-navigate-on-cycle-pe-recruiting?customgpt=1, Investment Management After Top MBA - Does Pre-MBA Experience Matter?, Q&A: PE Associate to MBA to HF Analyst
Bump. Not sure why this is being removed from the hedge fund forum to the PE forum.
It’s a blessing, if it was in HF you’d have about 32 comments, none of which relevant to your question, telling you SM suck and you should go to citadel
Del - misread question
Voluptas voluptatem rem iste est est quaerat. Iste explicabo maxime at qui vitae qui. Beatae est laborum esse porro itaque possimus dolores.
Ea cum eum dolor quas ipsa eos. Natus veritatis dolores pariatur earum itaque. Voluptatem ut provident laudantium tenetur hic non repellendus. Aliquam ducimus nihil laudantium sint id laboriosam vel.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...