CFA vs MBA for long-term industry progression?
Hi all,
3 months in at a fairly well-known mid-size multistrategy credit manager with 3+ years of EB M&A experience beforehand.
as I think about preserving optionality down the line, curious to hear if folks recommend the CFA or an MBA. Think I’d be competitive for lower M7s (would be targeting Booth, Sloan, CBS, Tuck most likely) but also don’t want to set myself back several years if I could be accelerating my progression with a CFA instead.
Professionals at my fund are split pretty evenly between one or the other (some with neither), and my specific team is split down the middle.
All input / anecdotes appreciated - thanks !
I did both, but I also used my MBA to pivot out of investing (after getting the CFA) - point being, they are not mutually exclusive and should be considered very separately. It all comes down to what you want to do with your career, but my high level take is that you're already in the finance world, so the CFA has less use (I've observed that it's best as an entry tool). MBA is useful only if it aligns with your goals. If you want to keep working in the investment world, I don't actually think you need either.
CFA: significantly cheaper, but only known in the investment world. Very difficult to pass all three levels in the first try, and it takes at least a couple years. Expect 300 hours of study per level (you could probably pass Level 1 with a lot less studying, but 2 and 3 require real effort). Unless your fund explicitly requires it to move up, I don't know why you'd go through the program.
MBA: especially M7 programs, would be a great chance to build network, reflect on career, explore different paths, and really enjoy a couple years of your life. On the flip side, it's expensive, and it's not really necessary in the investment world. Another note: re-entry to the investment world can be difficult from an MBA program as many funds don't have structured MBA hiring programs. If you are interested in exploring other career routes, I'd recommend going.
Someone correct me if they think otherwise:
I’ve heard that, assuming you aren’t at HSW, you won’t be able to get a job in an investing role unless you have prior experience. For those looking to grow their network and do a slight pivot (Growth Equity to VC as an example), an M7 MBA is a great choice.
An MBA is obviously better for optionality, but if you plan on doing late stage / public finance, I can’t believe a CFA would be a waste of time to someone with hedge fund / Public Company CFO aspirations.
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