Is the CPA worth getting while working in PE?
I am thinking about pursuing a CPA designation but also feel like that might be a complete waste of my time. My logic is that it would (1) genuinely improve my accounting knowledge and (2) maybe give me a little cred if I ever wanted to become the CFO of some corporate.
I could start studying for the CFA, which would certainly be more relevant, but have heard some horror stories about thousands of hours spent just to get stuck a level 3 and honestly just think the CPA would be easier to obtain. I also studied accounting in undergrad so I'd already be able to sit for the CPA. Basically, does anyone actually give a shit about the CPA if you aren't working in accounting?
Getting your CPA to get better at accounting is like amputating your hand to cut your nails, there are a lot of online course offerings now. You even get a cool little certificate that forces the school flag on LinkedIn for recruiters.
My view is that this is not worth doing. It is very important to highlight that I'm a Brit, and so our equivalent of the CPA (the ACA) might be different. I haven't done the ACA but my wife has so I know more than a little bit.
1) ACA (maybe CPA is different) requires you to actually do work as an accountant to be valid.
2) It will be enormously painful alongside your current job and life is too short
3) Without actually working in FDD / Audit / etc., your skills will never be close to your advisors. They will always be better at doing every aspect of their role than you will, so the "edge" you get in PE won't be very high - they're still going to get external advisors regardless of whether you have a CPA.
4) Honestly compared to other CFO candidates your value-add is going to be Corporate Development / M&A, not the Financial Report track (of the two typical tracks to CFO), and being a very amateur accountant will not add much to your profile at that level.
5) It will be boring (I'm sure even accountants agree with me).
6) It may improve your accounting knowledge. But what is the objective function that you're trying to maximise? If it's your usefulness in PE, then there are FAR better ways to contribute to your firm. Scout potential targets and call them. Build relationship with advisors in an industry space your fund likes. Be better at writing IC papers. Mostly origination again for bolt-ons to existing portcos. And if you have mentally committed to the time and money to get a CPA, spend the same time hustling potential targets, and take the money and buy yourself something nice.
Please don't do this (or for that matter the CFA for most of the same reasons - this time I did do the exams and they sucked and the credential is useless).
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