Anyone made a transition from MF PE to L/S MM HF?

Hey guys, 

I've previously worked at a consulting firm (MBB) for 2.5 years, then moved to a top MF PE. I've been now working here for 1.5 yr and my current all-in comp is around $250K (we do have significant discount vs US teams because of the location..).

I recently received an offer from a local HF with an AUM of $3bn+. It's not a top-tier fund like Point72/Citadel/Tiger/Viking, etc and the Fund only operates in Asia. I just wanted to get some advice from someone who made a similar transition - even if you're working in the US/Europe, I'd really appreciate your advice & comments. I don't really know HF guys so my assumptions towards the daily lifestyle of an HF guy might be biased!

Reasons why I'm considering the move  

  • Traditional buyout opportunities are limited and often may require personal networks if you become a senior. As a female, it makes it harder to prove yourself at a PE whereas at HF you prove yourself through numbers. 
  • Megafunds are often bureaucratic & political in decision making. Instead of fundamentally looking into the business and sharpening your business/investing acumen, your work might be more focused on the tremendous amount of admin work & deal execution. 
  • Comp upside... but need to be aware of the risks that stock markets may crash in the upcoming years.
  • Better lifestyle. I'm currently working 80-100hrs/week... Heard that HF I am considering requires ~60hrs of work (but who knows) 
  • I love looking into businesses. I'm not really into deal structuring or learning about legal documents and all the tax issues. 
  • As there are more quant-driven HFs these days, opportunities to work at a fundamental L/S equity fund might be rare.

Reasons why I'm reluctant

  • I don't have any prior professional experience in the public market & not sure if I could excel as a professional. 
  • Moving to an HF would basically saying that I would focus my career in the Finance sector in the long run...Still not sure if I would like to do Finance throughout my 30s and don't want to limit myself to a certain role. But at the same time, I want to earn $$ in my early years so that I could do a business of my own in my mid/late 30s. 
  • I'm an extrovert & strong at teamwork and soft skills. Not sure if HF would allow me to leverage my strengths. I don't want to be stuck a the desk 24/7.
 
Most Helpful

I think all of your thoughts are right on. Lots of people move from PE to HF space, tiger cubs love their 2+2 IB/PE kids. I think fundamentally both lines of business would lend themselves well to transitioning later in your career, but would think PE might do that a little better since it tends to be a bit more “operationally” focused. With that being said, both are very analytical types of roles and you should be interested in that if you want to succeed. I think PE would definitely have more of an interpersonal aspect in your work, but you seem to have a grasp on that as well. In the end, do what’s best for yourself. Business school is always an option as well. Good luck with everything!

 

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