Has anyone had experience doing the classic 2 IB + 2 PE and convincing a reputable VC shop to hire them on? How was the transition? If after a year someone realizes it’s not for them is PE closed off as a door? Do you have to get an MBA to pivot? What about publics?
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Based on the most helpful WSO content, here's what you need to know:
Pivoting to VC from IB/PE: Transitioning from Investment Banking (IB) or Private Equity (PE) to Venture Capital (VC) is not uncommon. Many reputable VC shops value the analytical rigor and deal experience gained in IB and PE. However, VC requires a different skill set, such as sourcing deals, understanding early-stage businesses, and building relationships with founders. If you can demonstrate these skills, the transition is feasible.
Returning to PE after VC: While it's not impossible to return to PE after a stint in VC, it can be challenging. PE firms often prioritize candidates with recent, relevant experience in buyouts, financial modeling, and portfolio management. Spending too much time in VC might make it harder to re-enter PE, as the skill sets and deal dynamics differ significantly. However, if you pivot back within a year or two, the door to PE is not entirely closed, especially if you maintain strong networks and can articulate your reasons for returning.
Role of an MBA in Pivoting: An MBA can act as a "reset button" for your career, making it easier to pivot between industries like VC, PE, or even public markets. Top-tier MBA programs provide access to networks, internships, and recruiting opportunities that can help you reposition yourself. However, an MBA is not always necessary if you can leverage your existing network and experience effectively.
Public Markets as an Option: Transitioning to public equities (e.g., hedge funds or asset management) is another potential path. Public markets roles often value strong analytical skills and investment acumen, which can be developed in both PE and VC. However, like PE, public markets roles may require you to demonstrate a clear interest and understanding of the space.
Key Considerations:
Ultimately, the transition between these fields depends on timing, networking, and your ability to position your skills effectively. If you're unsure, an MBA can provide flexibility and open doors across all these areas.
Sources: How MBA Is Not a Magic Bullet to Public Equity Investing, Q&A: 1st year VC analyst (~750M AUM), Why move to PE/HF at all?, Lesser known MBA career options? Looking for advice on what to do post-HBS., From PE >> Startup >> Back to PE
Your line of questioning is all over the place. Why don't you tell us what your situation actually is and what you're solving for.
At face value this is as much as I can provide with no context:
Has anyone had experience doing the classic 2 IB + 2 PE and convincing a reputable VC shop to hire them on?
Yes, it's been done but it's not a common path unless you're doing late stage VC.
How was the transition?
It's less deal execution and more sourcing and networking. You're spending more time figuring out who's raising and getting a look vs. building financial models and scenarios.
If after a year someone realizes it’s not for them is PE closed off as a door?
No, but I haven't seen anyone go back to PE.
Do you have to get a MBA to pivot?
No, MBAs are useless. I'm biased because everyone I know who did an MBA (Stanford/HBS) did not have a material change in their trajectory vs. if they just kept working. In some cases I'm convinced it slowed their progress.
What about publics?
Publics is a completely different skill set. Rare to see VC -> HF for example..
Hey @Determined , hijacking this thread a bit but it is related. What about someone wanting to go from venture / growth stage software —> PE software?
I’m coming from an ex-IB & strategy background, along with about 8 years of early and late stage venture/growth investing, but no prior PE/buyout.
Without getting too into the weeds (but happy to in a DM if additional context is helpful / to provide more on the role I see) my current firm is a bit conservative. I would like to make the move to either more late stage venture-growth, or more traditional growth equity and PE covering software.
How good are you at sourcing? And how late stage is your experience? Like Series B/C or even later?
It's going to be hard to go into buyout since the deal structures are much more complex and everything is banked vs. sourced internally.
Seats for growth equity are pretty slim, especially for software right now so I'm not sure making even a lateral move is going to be simple.
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