I have worked at a venture firm for a year and a half where I have co-led multiple investments. Received MBA from Top 10 program and was previously in MM/BB IB. Really want to head to a hedge fund having realized that venture is far too slow (not quantitative enough either). I feel that I have a very transferable skill set, but wonder if the switch is even feasible. I would love to hear if anyone has made this type of switch. Thanks.
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what was the of focus of VC firm? Best bet will be looking at industry L/S like tech, TMT, healthcare, life sciences (Coatue, Tiger, etc.)
We mostly focus on technology, but also some HCIT. Outside of credit, I guess I just feel pretty confident that the combination of my banking / MBA / VC has given me the skill set to be able to provide value to a fund that looks at investments from a fundamental approach, i.e. l/s, value, etc. I guess the broader issue is that VC is just not as intellectually stimulating for an investor as it is for an operator (obviously one person's opinion). Now the hard part is convincing a HF of this!!!
I think you would have a shot. Best way to get in front of a HF if you don't have an internal referral would be through headhunter. Check the forums for lists or PM for some contacts. A quick phone call with an experienced HF recruiter should be able to answer your questions about the career switch.
VC to Hedge Fund? (Originally Posted: 05/10/2008)
I've always been extremely interested in hedge funds, but when I had the opportunity to do an internship at a VC firm starting this summer, I took it. Is it likely/possible to go from VC to HF after an analyst stint at a VC firm or are the skills completely separate? Also, is VC looked upon highly by HFs?
Thanks
Hmm...good question. As far as I know, the skill sets are entirely different. HFs usually look for traders if I'm not mistaken and traders have very little in common with VC analysts. Now that is not to say you couldn't get hired, but I would think that you wouldn't be high on the call back list.
Since you don't seem to know all that much about HFs, I'm assuming you are interested in HFs because you see HF managers walking away with BILLIONS of dollars every year. I know, it sounds like fun doesn't it?
One option for you is to see how you like VC and maybe stick with it if you enjoy it. Most of these HF managers make so much money because they manage so much money. Being in the VC industry will give you the contacts needed to be successful anywhere.
A summer internship does not dictate your career path nor does it necessarily have an adverse impact on what you decide to pursue after graduation. Take the VC internship and continue to learn more about other areas of interest as well.
depends what kind of HF you want to join. There are biotech/healthcare oriented HF's that do a decent amount of vc like investing (orbimed/great point/pequot)--same goes on Technology side.
Completely agree that it does not dictate my career path. I have NO exposure to VC thus far but have decent exposure to the HF industry (worked in prime brokerage). I know I am interested in HFs. Hopefully I will enjoy VC, but was really wondering if the change was possible assuming I was to receive and accept an offer. I am planning on taking the CFA regardless of what industry I am in, so hopefully that will help.
Love the graphic.
Agreed. Perfect picture.
From VC to HF (Originally Posted: 12/08/2013)
Hi guys,
how hard is the move from top-tier VC to an equity-oriented HF? Currently debating career choices (top VC gig now vs. applying to AMs or smaller HFs). Coming from a VC & biz dev role.
Thanks for your help!
Honestly depends on the VC and the HF - if you've spent a couple years out of school doing VC, my question for you would be in terms of how much actual modeling experience / proficiency you've got, as an HF hiring into a junior role is going to want to check the box on that. The nice thing about coming from VC is that you've got a good mental toolbox on how to think about good business / bad business, arguably more so than those coming out of say IBD.
Helpful?
Modeling experience is decent, valuation close to zero. My idea is to move to a HF role in the long-term, but I don't want to miss out on the VC gig for now (enjoy it while it lasts). I like both. They are quite different of course, so I guess the real question is how accessible the HF world is at a later stage (say with 4-5 years of vc experience).
Dr. Schultz - I am actually trying to make this switch, and it seems that it will take a "perfect" fit to make it happen. I am post-MBA with analyst and associate IB experience, and 1.5 years in VC. Modeling and valuation is a no-brainer, and actually, the main reason that I am trying to change is to go back to a more quantitative / analytical investing role. So far the process has been tough (has not been that long, so there is hope). I keep seeing postings that are pretty targeted in the backgrounds they want (usually say something along the lines of "we will also consider those with PE / VC experience), but people in the industry keep telling me that the VC background is very valuable. I am very biased but definitely agree with DaCarez in the sense that the mental toolbox / ability to really understand what makes a successful business is something that should translate very well to a HF, especially one that may be a little bit of a hybrid fund who invests in private rounds. One note, I am in Boston, so this search could be much different / easier in NYC / CT.
Thanks for your response. I guess I need to decide whether to go for a relatively bad HF / AM role now vs. a top VC job, if my ultimate goal is public market investing.
VCs to HFs... Good idea or bad idea? (Originally Posted: 09/08/2010)
I apologize if this sounds like a very basic question, but I tried to search and couldn't find an answer to this...
A little background about me -- I am still an undergrad. I am undecided whether I would want to ultimately work in VCs or HFs. My school (via location + alumni) has a strong connection to VC firms, so I have more opportunities in VCs than HFs.
I am currently thinking of trying to get a VC analyst position out of college, so that I can be flexible and branch out into either VC or HF down the line when I do decide which I like more. My question is, if I were to get a position at a VC, would that even help my chances (to a significant degree) of breaking into the HF world? I am mainly looking at fundamental analysis HFs such as event-driven and l/s funds.
I would think that a lot of the skill set used in VCs crosses over to these types of HFs (such as company valuation, sector anaylsis, risk management... anything to do with fundamental analysis), which makes sense to me, and even VCmonkey says one of the exits of the VC industry is in HF world in this thread //www.wallstreetoasis.com/forums/breaking-into-vc-from-undergradmy-story
But from reading other websites, including this http://JPM.cc/differences-between-venture-ca and mergers and inquisitions, there seems to be a general consensus that exits of VCs are only other VC firms and start ups.
So what gives? Are the skill sets developed in VCs just too specific to be transferred to other areas of finance? Do HF recruiters just not value VC analyst experience? What do you guys think about VC experience?
from my understanding VCs also have okay exit opportunities into growth-stage PE firms. It makes sense intuitively, as if you're good at analyzing investments for seed stage tech companies, you'd clearly be able to apply at least some of those skills to investing in growth stage companies (at least Tech companies). VC is not typically a place you want to exit from though- it's more of a destination. If you're not sure between VC and HF, go into IB - that'll keep your options open.
I leveraged my VC experience to get my foot into a l/s fundamental HF. Emphasise how your experience helped you understand corporate structure and evolution and pop out CFA level 1 while you're at it.
Thank you for the responses. So it seems the only skills in VCs that can be used to leverage into HFs are corporate structure and growth? And it would be a much better option to do IB, S&T, or ER if I want to keep all options open (especially macro hedge funds -- those also interest me)? I guess that makes sense. Thanks again!
To me there are 2 types of buy-side firms: liquid markets and illiquid/private investments. VC obviously falls into the second category with PE funds. In order to move to a hedge fund you'd have to either start at the bottom or learn to be a "market person"...ie you'd have to learn all about the products the firm trades and how those markets work. It's definitely not an easy process and its why you see many more former traders running money at macro and fixed income funds then you see former bankers.
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