I currently work in fund-adjacent investing at a top-tier endowment—covering primary fund commitments, GP- and LP-led secondaries, and co-investments. I graduated cum laude in engineering from a semi-target school. I recently got auto-dinged from a co-invest role at a tier 1 PE fund and was super frustrated; they said it's because I have no banking experience.
My question:
- With hands-on experience in secondaries and co-investments, is it realistic to move directly into private credit, VC, or private equity? I am primarily targeting roles with some relationship to FoFs.
- Would targeting smaller firms, less-prominent groups, or roles in random cities improve my odds?
- If a direct jump isn’t feasible, is an MBA worth it, or should I pivot into investment banking first? I’m keen to avoid both paths if possible given cost, hours, and my strong direct-investing skill set.
I imagine this chat will become super negative with all the trolls on WSO and I encourage that because maybe that reflects the reality of the situation. Hopefully, people will aim for realism and comments that are actually helpful tho.
Based on the most helpful WSO content, here's what you need to know:
Direct Jump to PE/Private Credit/VC:
While your experience in secondaries and co-investments is valuable, many tier 1 PE funds heavily prioritize candidates with investment banking backgrounds due to the modeling, deal execution, and transaction experience that IB provides. This is a common hurdle for those coming from fund-adjacent roles. However, targeting smaller firms, middle-market funds, or niche groups (e.g., private credit or VC) could improve your odds. These firms may be more open to candidates with non-traditional backgrounds, especially if you can demonstrate strong technical skills and deal experience.
Targeting Smaller Firms or Non-Tier 1 Locations:
Yes, focusing on smaller firms, less-prominent groups, or roles in secondary cities can significantly improve your chances. These firms often have less rigid hiring criteria and may value your hands-on experience in secondaries and co-investments more than larger, brand-name funds. Networking aggressively with these firms and leveraging your endowment experience will be key.
MBA vs. Pivoting to IB:
Alternative Strategies:
Realism and Positivity:
While the path may be challenging, it’s not impossible. Many professionals have successfully transitioned from non-traditional backgrounds into PE, private credit, or VC by targeting the right firms, networking aggressively, and sometimes taking an intermediate step like IB or an MBA. Stay focused on your strengths—your direct-investing skill set and hands-on experience—and tailor your story to highlight how these make you a strong candidate.
If you’re keen to avoid IB or an MBA, your best bet is to focus on smaller firms, niche roles, and leveraging your network to land interviews.
Sources: Q&A: I’ve held Pre-MBA MM LBO, Growth Equity and Venture Capital investment roles for funds with $500M+ AUM to $5B+ AUM, https://www.wallstreetoasis.com/forum/private-equity/going-from-mm-investment-bank-to-mega-fund?customgpt=1, How Do I Get Into Private Equity?, Q&A: 1st year VC analyst (~750M AUM), Q&A: VP in Private Equity (Growth Equity + LBO)...Post-MBA...Formerly IB Analyst
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