Stay in PE or move to M&A

Hi everyone,  

I'm currently an analyst in a MM infra-fund in London (£1bn-£5bn AUM) and I'm facing a major dilemma. Most of my work relates to managing portfolio companies (budget, add-on acquisition) but I’m barely involved in brand new acquisitions. I feel like missing a whole part of the job! I know that I’m still young but I have barely been involved in any transaction in more than a year and I’m afraid of missing out something. I have developed good modelling skills and I’m starting to think like an investor, but what do you think is the cost of opportunity behind this? How competitive can I be in one or two years compared to an M&A analyst who dedicated most of his time to deal processes?

I would appreciate any guidance whatsoever!  

 

Hey there,

It sounds like you're in a bit of a pickle! But don't worry, it's a common one in the finance world.

Firstly, it's great that you're getting experience in managing portfolio companies. This is a valuable skill set that many M&A analysts don't get to develop early in their careers. However, I understand your concern about missing out on transaction experience.

The cost of opportunity really depends on your long-term career goals. If you're aiming to stay in private equity long term, then gaining transaction experience is indeed important. However, if you're open to exploring other roles such as working with a portfolio company, startup, or corporate life, then your current experience could be very valuable.

In terms of competitiveness, an M&A analyst who has dedicated most of his time to deal processes would indeed have more transaction experience. However, your broader experience could also be attractive to employers, especially those looking for versatile candidates who understand both the investment and operational sides of a business.

So, my advice would be to first clarify your long-term career goals. If you're set on staying in PE, then it might be worth seeking opportunities to get more involved in transactions, whether that's in your current role or elsewhere. If you're open to other paths, then continue to build on your current experience and skills.

Remember, there's no one-size-fits-all answer here. It's about finding the right path for you. Good luck!

Sources: Would you leave in this situation?, https://www.wallstreetoasis.com/forum/consulting/managed-to-pivot-into-ma-advisory-in-a-small-boutique-instead-of-tech-consulting?customgpt=1

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