Not intellectual enough for PE
Hi everyone, I am in my second year at a UMM fund. I was the type who dreamt of working in PE in college and worked hard to get here. However, I've come to realize that maybe I don't have the intellectual curiosity for an investment role. My closest friends and my partner all agree that I am intelligent but not intellectual - I never really had the urge of learning new knowledge etc. I had thought I would be fine working in finance as long as I work hard which has been working well so far. But after more than a year in, I constantly feel I don't actually love to think about markets/industry trends or debate with IC if this will be a good investment or not. I also don't really have the interest to deep dive into a sector to understand all the nuances, though I pretend I am interested. I just do what I was told to do and do it reasonably well to get the deals done but I am not driven by any intellectual curiosity.
I thought maybe I'm not the only one and many people working in this industry are driven by money / prestige rather than this intellectual hunger anyway. But if I look around my colleagues, I think the VPs above do have a genuine passion for the sectors they specialize in. That makes me question if I can succeed in the long term once I pass the senior associate level.
I think it is difficult for me to admit to myself and to the world that I am just not intellectual enough. I went to a top Ivy and people always see me as a smart guy. But everyday I just feel I'm pretending to be smart and pretend that I care about these due diligence questions when I really just want to get things done. Sometimes I even feel I miss IB because it was just about selling - MDs say whatever they need to make the business sound amazing to sell it.
I would love to get some advice from this forum. Should I give it some more time or perhaps consider a different career path?
Hey there, it sounds like you're in a bit of a pickle. It's not uncommon to find yourself in a role that doesn't quite light your fire the way you thought it would. It's important to remember that it's okay to not know everything and to not be interested in everything. That's what makes us human!
From what you've shared, it seems like you're doing a good job at your current role, but you're not feeling the passion or intellectual curiosity that you see in your colleagues. That can be tough, especially when you're in a field like PE where deep knowledge and interest in the sector can be a big part of the job.
Here are a few things you might want to consider:
Give it some more time: Sometimes, passion and interest can grow over time. You might find that as you get more involved in your work, you start to develop a deeper interest in the industry.
Explore other roles within your field: If you're not feeling the love for the investment side of things, there might be other roles within your field that could be a better fit. For example, you might find that you enjoy the operational side of PE more, or you might be more interested in investor relations or fundraising.
Consider a different career path: If you're really not feeling fulfilled in your current role, it might be worth considering a career change. This could be a big step, but it's important to remember that it's never too late to pursue a career that you're truly passionate about.
Seek advice: Talk to mentors, colleagues, or a career coach. They can provide valuable insights and help you navigate your career path.
Remember, it's your career and your life. It's important to find something that you enjoy and feel passionate about. Don't be too hard on yourself. You're not alone in this journey. Good luck!
Sources: Should I quit after 6 months on the job?, Another career-crisis / passion vs career post!, When does the rat race end?, Career in Finance - Reality or Reach?
I feel you brother, I am in the same boat honestly. When I was recruiting around while in banking, I got that vibe at the MF and UMM / MM firms I was interviewing with, and heard similar from my older friends at those more 'hardcore' buyside shops. The people who make it to the top genuinely love it and put this job above everything else in their life; in some ways these Partners are even more willing to work around the clock than banking MDs.
I don't have directly applicable advice for you, but would encourage you to start exploring other buyside opportunities besides traditional large cap buyout. I ended up taking an offer in the PE team at a SWF (something like GIC, Temasek, etc.) - while there are some genuinely hardo finance people here (what you call intellectually curious), there are some chill people as well and I think its overall less intense than at a large cap buyout GP. While I'm not solely focused on buyouts, its a good balance I think for me to still work in finance, but at a less intense pace. Could be a good option for you if you want to stay in the industry, but just take things a little bit easier.
How does comp/progression/job stability differ?
It's a pay cut for sure, I think the general rule is like a ~15-25% pay cut depending on the firm. So MF AS1 is like what 350k'ish these days? AS1 at a good SWF is usually around $270 - $300k, give or take. The pay cut obviously escalates over time, as we also get no carry (we get LTIP which is like deferred larger bonus payouts, but my Partners have no carry or economics and hit 7 figures, but will never be raking like several millions a year unless you get to group head, and above)
Progression is pretty standard still (our model generally follows GPs), so AS to SA to VP, etc. Some SWFs prolong things a little bit, but the tradeoff is that job stability is higher. A lot of these SWFs are in the name, so these are country funds or large pensions with easily over $100B in AUM, and while it can happen, its quite infrequent to see someone fired than compared to a GP.
It's the tradeoff you make - I'll never own a yacht or private jet, but I also work ~60-65 hours on average and can still hit low 7 figures. If you're cool with that, being at a SWF is not a bad place to be
I think it's great that you are asking yourself these questions and trying to find a satisfactory answer; the right answer will set you up for success in whichever role suits you. It reads like you are trying to find the right balance of thinking and executing, and that is a tough balance for someone to figure out for themselves.
There are two paths that I think are of the least resistance. You don't have to move in that direction now, but you could begin positioning yourself to make the move. The first one is one you have already covered, which is going back to the sellside. I think there are plenty of intellectual people on that side of the transaction, but execution is the priority, which usually cuts through the BS and you only focus on actionable opportunities. The second route could be to go to the investor relations side. You would have the advantage of understanding how to diligence and underwrite investment opportunities, but your audience would shift from your IC to LPs. It would allow you to satisfy your intellectual curiosity, but you obviously would be more focused on cultivating new and existing relationships while being able to communicate your firm's strategy to external parties.
The fact that you are self-aware enough to make this assessment shows a high “intellectual” capacity on it’s own. An i feel exactly the same way you do with my colleagues. But better you are honest with yourself
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