PE Exit to Slower Paced Investment Role out of NYC

Hey all -

I'm a second-year PE associate at a UMM fund in NYC. I am looking to get out of PE and NYC in search of a slower pace of life while still doing some kind of investing. 

I'm gravitating towards roles in family offices, pensions, endowments, long-only asset management, or hedge funds. I aim to step away from the high-intensity deal life, looking for something more stable and less transactional. I also acknowledge that part of it is NYC's finance culture, so I am looking to move out and considering Chicago, Austin, LA, and Miami, but I am open to anywhere. I would like to keep comp somewhat high, but I am in no delusion that the combo of leaving to lower COL city and leaving PE likely means a pay cut (particularly for pensions/endowments), although I'm already pretty far along in a process for an FO role that would result in a solid raise and ostensibly the better WLB I am looking for.

Would love insights or advice on:

  1. Transitioning from PE to the sectors mentioned - how feasible is it?

  2. Ideal roles within these sectors that match my background - any sectors I am not considering?

  3. Relocating - any cities among my preferences known for opportunities in these investment sectors?

  4. Any success stories or lessons learned from a similar shift?

  5. Anything to look out for with FO roles?

4 Comments
 
Most Helpful

Going through pretty much the same thing right now so will offer findings from my own search - responses below are focused on the endowments / foundations (E&F) space as that's what I've been focusing on.

  1. Transitioning from PE isn't a slam dunk but doable if you have a compelling enough story (i.e. better WLB shouldn't be your only rationale for making the switch). These roles typically look for people fresh out of their 2-year sellside stint but there's definitely some flexibility here as I've seen people with anywhere between 2-6 YOE join at the junior level.
  2. The PE skillset isn't going to transfer directly to E&Fs since it's a completely different style of investing (manager selection vs. direct investing). Where you'll likely have an advantage is being familiar with some of the major players in the PE space and their different strategies.
  3. A decent amount of E&F roles in NYC and then a decent amount elsewhere as some schools have their endowments on / near campus.
  4. No success story yet, though have been able to network a bit through cold LinkedIn outreach. Hiring is really sporadic as there's no formal analyst / associate programs - seems important to just network and be top of mind in case something opens up.
  5. Haven't really found any red flags for E&F - pay will obviously be a discount to PE but you know that already.       
 

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