PE->Strat Fin -> Back to investing?

If your long-term goal is to return to an investing seat, here's how the options stack up based on the most helpful WSO content:

Option A: Back to Software Banking

• Pros:
  • Banking roles, especially in sponsor coverage or sell-side mandates, keep you close to deal flow and financial modeling, which are highly transferable skills for growth equity or VC roles.
  • Strong networking opportunities with PE, VC, and growth equity firms through deal interactions.
  • Banking is a well-trodden path for transitioning into investing roles, and your prior experience in PE adds credibility.
• Cons:
  • Banking hours can be grueling, and it may not align with your long-term goal of moving back into investing.
  • It’s a step back from your current strategic finance role, which might feel like a lateral or backward move.

Option B: Corp Dev/Strat Fin at a Pre-IPO Software Company

• Pros:
  • Working at a pre-IPO company gives you exposure to growth-stage businesses, which aligns well with VC or growth equity investing.
  • Corp dev roles often involve M&A and strategic initiatives, which are directly relevant to investing.
  • You’ll gain operational insights, which are increasingly valued in growth equity and VC roles.
  • If the company goes public or has a successful exit, it could boost your resume and network.
• Cons:
  • Corp dev/strat fin roles may not provide as much direct exposure to deal flow as banking.
  • Networking opportunities with investors might be more limited compared to banking.

Recommendation

If your ultimate goal is to return to an investing seat, Option B (Corp Dev/Strat Fin) is likely the better choice. Here’s why: - It aligns more closely with the growth equity and VC world, where operational experience and understanding of scaling businesses are highly valued. - You’ll still have opportunities to network with investors, especially if the company is pre-IPO and engaging with VCs or growth equity firms. - It positions you as someone with both investing and operational experience, which can differentiate you in a competitive market.

However, if you feel your network is not strong enough to facilitate a move back into investing, Option A (Banking) could be a better short-term play to rebuild those connections. Ultimately, your ability to network and leverage relationships will be the key to transitioning back into an investing role.

Sources: Corporate Strategy vs Corporate Development, Most academic style of investing that requires the most thought?, Life after 2 years in Private Equity, From PE >> Startup >> Back to PE, Any career regrets after moving from PE to public markets?