PE exits from HF?
Hi everyone-
Looking for a better perspective here on job opps. I've worked in sell side equity research for a few years, prior to that had some industry experience in the sector I cover but no investment banking experience. I'm currently getting recruited pretty heavily for an HF job with a client of mine (for context, Millenium/Point72/Citadel), however I'm more interested in going the PE route. Within my sector there is a lot of PE interest right now (think from KKR, Apollo, Blackstone, etc) and I have made it to interview at two such funds even despite coming from a non-traditional background; at least in one of those instances I got dinged mostly on an LBO test I didn't have much time to prep for.
Here's my question: having come a non-traditional background, would I be better served by going back to school (I'm currently applying for 2021 fall) and then trying to go down the PE road, or should I go to HF for a few years and try to lateral? I recognize I'm coming from a tough spot having not gone the IB route; that said, I have gotten interviews before so thinking it hasn't had as much of an impact as one might think.
Possible, but more difficult the further you go.
Intermediate-level jumps are next to impossible; if you don’t have any transactional experience (sellside or buyside) no one will hire you for a VP role, so at best you’d be starting as an associate same as you would now (and likely taking a sizable pay cut).
Your odds increase slightly if you’re a sector expert and jump to an industry-focused fund. The only real entry points tend to be at the associate level or 20 years down the line at the MD level when you’re being brought in for sector expertise and relationships rather than technical ability. If PE is what you ultimately want, I’d recommend moving sooner rather than later
I am honestly surprised you are getting interviews now coming from sellside research. I think you need transaction experience to set you up for success in PE. It is also very difficult going from HF to PE (even if you’re at a blue chip fundamental hedge fund and you have had blue chip banking & PE experience in the past).
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