Path from CPA to PE?
Currently at a PE firm for almost a year as an accounting manager as I have always been interested in the industry. However, accounting is accounting even at a PE firm and is not what I want to do long term in my career. I really enjoy being part of meetings with the investment team and how they think about deals so I'm exploring options, if there is even one, to transition to the investment team at the current PE firm or another firm. Below is some background info. Would love to know what you guys think and if it's even possible at this stage.
Background:
-28 years old CPA with more than 6 years in public accounting in a regional CPA firm (Top 100 firm) as an auditor (made it to senior manager) working on audits of MM PE firms, broker dealers, and investment advisors. Was always involved reviewing valuation models and very familiar with the concepts (Plenty of time studying Damodaran and reading PE books for fun).
-Super non target school for my bachelor (completed in 3 years) and interned at a search fund which introduced me to this industry which I really liked but for whatever reason I stuck with accounting. Completed a Masters degree in Accounting at a "top" state university so 4 years of school in total.
-Quit audit to work in the accounting department at a PE firm. Exposure to deal and ops team and great partners, but 95% of the time is doing my accounting job. I have learned a lot just being around the teams and listening but not really directly exposed to any deals.
-For whatever it's worth I have started taking financial modeling courses and other self-taught courses related to PE. I plan to self-learn whatever I can get my hands on related to PE.
Any advice?
-Go back to school and try for an MBA at a target school (If I can even get in)? is it too late? Give up current salary which is very fair for this position and taking two years would be a difficult decision but might consider it if it's my only option. The firm covers MBA tuition for the investment team but probably not for me lol.
-I have considered asking some close colleagues in the investment team if I can help with any ongoing projects but I don't know if they would take it as an insult or if the accounting department finds out so have stayed away from that. I feel like I can definitely do the work that associates and sr associates do, but maybe I'm being arrogant.
-Should I tell one of the Partners what I'm thinking and maybe they can offer some guidance? Partners are very friendly and offer great advice, but this could potentially get me fired if they think I'm just not interested in my current job.
-Maybe focus on portfolio ops instead?
Thanks in advance.
if youre good enough and a position opens up internally, just speak to the hiring manage and show your interest. if they reject you, then strategise with MBAs etc
Agreed with the above, also speak to your boss and let them know you’re interested in that side of the house along with those on the deal team that you are close with so your supervisor isn’t blindsided if they say you can help.
As someone who made this transition, although slightly differently, just know it is going to be really really really hard and take a lot of time and rejections. If a path isn’t there for you at your firm I would look to move into transaction advisory at a Big 4 or top boutique firm (A&M, TL, etc). Should be able to make that switch without too much effort and then there you’ll gain skills that more closely align with the type of analysis you’ll need to perform on the job. From there you can try to jump to PE or IB if the PE door isn’t open right away and hopefully from IB to PE. An MBA might be your easiest path to IB but it is possible without it. Expect to be brought in at the lowest level for most of these jumps (except TS/FDD as you have accounting experience) but know in the long run you’ll earn more than you are now. Further start trying to network with other connections in the finance world you have (alumni or otherwise, even cold connections through LinkedIn) and build those relationships to see if they are able to help. It’s all about knowing the right person at the right time and being prepared when the time comes
Really appreciate this response and congrats on making the transition.
I think target school MBA is your best path. FWIW most MBA associates are like 30-32 so you would be right on track with timing. PE is not likely right out of MBA, but spend a year or two at BB/EB IB and you will have plenty of options for MM/UMM PE.
I just don't think accounting -> investment team is doable as a direct path. Perhaps you could do accounting -> big 4 TAS -> MM IB -> LMM PE... just seems like a ton of moves and that will get questioned given you're more than a few years out of school
I will not say impossible.. but a lot of luck / timing will have to break in your favor.
I went from audit to PE but had stops in FDD and IB in between. Slight difference is I was at Big 4 and a solid undergrad.
With no name uni, no name accounting firm for 5+ years, and then taking back office role, you’ve just not built a super compelling case on paper.
So, I would devote all your time, energy, attention on unconventional methods of pivoting - talking to your current firm, reaching out to brand new funds that are super LMM, connecting with small family offices, etc. Need to get someone to bet on you as a person bc your resume, frankly, would probably never work.
Once you’re in, you’re in!
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