started in direct investments, moved to indirect, trying to move back and have an interview... please help
I started my career in direct PE at an UMM shop on an analyst program. I left about 14 months in to join a Fund of Funds (Indirect PE - Primaries, secondaries, and co-investments) as I went straight to associate and got a pay bump. Now I am 9 months in and really regret the move due to how easy / mundane the role is. My peers are all ex IBD / PE but most left at VP level to settle down with family and better WLB.
I have an interview coming up with a direct PE MF in a couple of days and two obvious questions will arise;
1) Why leave the direct side and now come back?
2) Why jump ship twice in two years?
The direct response is pretty clear I hope - I plan to explain that I left since it was a significant step up in responsibility and I anticipated to still be heavily involved in deals - realised I'm a lot further away from the assets and business analysis than I'd like to be, hence my interest in moving back to the direct side at a top player. For the second question - really hard to answer. The unfiltered truth is that it made sense at the time but I do not want to stay in fund of funds longer than a year or I may find myself fully stuck. How would I phrase this tactifully in this context?
Help appreciated!!
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Sorry, why did you leave? Short-term cash comp bump?
I would have to phrase it such that it was sold to you as the opportunity of a lifetime with a career track, no need to go to business school, a lean team, and working for someone super smart without a bunch of associates, VPs and principals in the middle. Not sure if any of that is true, but would say something like that if it is.
You could then say that it was not characterized properly to you and that you made a mistake. It will depend on how well you can sell the narrative that I laid out above.
If you are really as short-sighted as you potentially seem, you will have to figure out a way to overcome. In general, people want you to meet your commitments and honor your word.
Worst case, I'd crush it at your current firm, lead a few co-investments, and then try for HBS to pivot back into direct. It will depend on the market.
I'm actually not so sure that where you are is that bad. Everyone who is young thinks the action is in the detailed modeling and the detailed diligence, but a lot of it is just being around smart people and absorbing the ways of the world.
You described it perfectly. My team has 5 people, I am the only junior (associate at 2 YOE) - my manager is former PJT RSSG / BX and came across super sharp in the interviews. Was sure I would learn a lot from him but he does like 3 hours of work per day and is remote 90% of the time. I joined expecting to be doing actual fund underwriting (and large ticket sizes so plenty of co-investment deal flow / access to deal teams and businesses), instead - I literally write fake memos knowing we will decline at x stage just to make it seem like we are selective...
I just don't want to sound like a moron for making a mistake like this and potentially not doing enough DD before moving to the indirect side - I was a bit naive to not realise this is a lifestyle exit only. I would love to have a chance to go back to the direct side (and this is a top top name so would be insanely good for my learning and career development) and stay, but this is difficult to convey.
Yea, def gonna need a “FoF is Paradise” post from the perspective of this VP. Guy sounds like he’s living the dream
And to clarify, I left because I was just over 1 year of experience in my last role and lateraled into this 'investment professional' role - big comp boost and my corporate title is Associate. Seemed like an obvious choice at the time.
That's a pretty good story. I would use that. No one is going to fault you for believing that story and wanting to take a shot at it. If you are honest and transparent, and explain it that way, the conversation should move quickly to you competencies, interests and fit with the role /team.
It's okay to make mistakes as long you can speak about them intelligently and with humility.
If you want to DM me, happy to do a quick call to practice your story.
Why did mod team remove?
I actually have no idea. I was just saying that I thought your rationale was a good one. No one is going to fault your for making a mistake as long as you can explain intelligently and with humility.
Yeah makes sense, thanks - I could see your msg from notifications. Only thing is, that then means i have just over a year of direct experience (which was 9 months ago) and the work I have been doing is not really useful then.
Would it not be better to frame my experience as very positive (although it was okay in reality) and just say I realised I want to be more in-depth with the businesses and actually do the due diligence underwrite / I want something more intense so I can learn faster and progress professionally? This way I frame my past experience as value adding?
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Final bump - pls help haha
You could frame it as moving from direct to indirect offered greater exposure to different sponsors / their strategies / sectors / assets and now have an interest in whatever the new fund focuses on.
I would focus on the message that what you’ve learnt in the FoF helped to broaden your perspective, but you realised you prefer the gritty operational / portco side of things.
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