PE To Industry And Back

Based on the most helpful WSO content, transitioning from private equity (PE) to an industry role and then back to PE is possible, but it depends on several factors. Here are some key insights:

1. Timing of the Exit and Return:

   • Most individuals who make this type of move do so at the Associate level. This is because returning to PE becomes more challenging at the VP level and above, where firms expect a deeper track record in investing.

2. Common Industry Roles:

   • Many associates leave PE for roles in corporate development, strategy, or chief of staff positions at large companies. These roles often provide exposure to strategic decision-making, M&A, and operational insights, which can be valuable when transitioning back to PE.

3. Pathways Back to PE:

   • Networking: Maintaining strong relationships with former colleagues and headhunters is crucial. Many individuals return to their previous fund or leverage their network to join another fund.
   • MBA Pivot: Some use business school as a re-entry point into PE, recruiting alongside other candidates with prior PE experience.
   • Experienced Hire Process: For those who skip the MBA, running an experienced hire process for a Senior Associate role at a fund that values their industry experience is another option.

4. Challenges:

   • Funds may question the candidate's commitment to PE, especially if they left the industry once. Crafting a compelling narrative about why they left and why they want to return is essential.
   • The return is easier if the candidate has maintained relevant skills (e.g., financial modeling, deal execution) and stayed connected to the investment space.

5. Success Stories:

   • Many individuals successfully return to PE, especially if they can demonstrate how their industry experience adds value. For example, someone who worked in corporate development at a tech company might bring unique insights to a PE fund focused on tech investments.

In summary, while the transition from PE to industry and back is not the most common path, it is achievable with the right strategy, networking, and positioning of skills.

Sources: Corporate Strategy vs Corporate Development, From PE >> Startup >> Back to PE, From Private Equity Associate to VP in Private Equity, The Other Road: Corporate Development Associate Fielding Questions, Corporate Development Manager - Q&A