Underrated Buyside Careers?

Based on the most helpful WSO content, here are some underrated but still high-compensation and prestigious buyside careers, particularly accessible from non-IB backgrounds and revolving around FoF, secondaries, and co-investment shops:

1. Fund of Funds (FoF):

   • FoF roles involve investing in other funds rather than directly in companies. While some criticize FoF for being less "hands-on," they offer a better work-life balance compared to direct PE roles.
   • Look for FoF opportunities with a balanced split between Primaries (investing directly in funds), Secondaries (acquiring stakes in existing funds), and Co-Investments (investing alongside funds in specific deals). This mix can provide exposure to diverse investment strategies and skill-building.

2. Secondaries:

   • Secondaries involve buying and selling pre-existing investor commitments in private equity funds. While some find the work less exciting, it can be lucrative and offers a unique perspective on the private markets.
   • Secondaries are often seen as a niche but growing area, with opportunities to leverage analytical skills and market insights.

3. Co-Investment Shops:

   • Co-investment roles allow you to work on direct investments alongside larger funds. These positions can be a great stepping stone to direct PE roles while offering a more collaborative and less hierarchical environment.
   • During co-investment periods, the work can resemble direct PE investing, providing valuable experience.

4. Direct Lending:

   • Direct lending firms, such as Ares, focus on providing debt financing to companies. These roles are accessible from non-IB backgrounds and offer strong compensation with a focus on credit analysis and deal structuring.

5. Corporate/Senior Lending:

   • These roles involve working with private equity firms to provide financing for their deals. While you won't earn "carry," the jobs are cushy, with decent pay and opportunities to build relationships with PE professionals.

6. Asset Management (AM):

   • AM roles, particularly in private markets, can be a great alternative. They offer exposure to a variety of asset classes and often have better work-life balance compared to traditional PE or IB roles.

These careers may not have the same level of hype as traditional PE or hedge funds, but they provide strong compensation, prestige, and opportunities for growth, especially for those coming from non-IB backgrounds.

Sources: Q&A: 1st year FoF Infrastructure at Buyside, Q&A: 1st year FoF Infrastructure at Buyside, Breakdown of Post-IB Exit Opportunities, An old man looking for advice, Breakdown of Post-IB Exit Opportunities