Asset Management Exit Opportunities?

Hey guys, I have recently grown interested in AM -- particularly in portfolio management -- and have been wondering what sort of exit opportunities this industry entails. In my opinion it seems to me that you can do 2-3 years as an analyst for a MUTF then go and get your masters and CFA and move to a larger fund (think PIMCO Total Return) or a hedge fund, am I correct in my assumptions? Or are the exit opportunities less impressive than I assume?

Thanks!

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Comments (46)

Nov 4, 2012 - 12:10pm

Depends what firm you go to, but yes you're right in terms of what the track typically looks like. There's so many different asset managers out there that every one is going to open unexpected doors at some point but it's definitely no less promising in terms of exit opps as banking... that is, provided you are dead set on some form of investment management in the long run, meaning AM or HF... or a select few other fields.

I hate victims who respect their executioners
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Best Response
Nov 4, 2012 - 2:11pm
BlackHat:
Depends what firm you go to, but yes you're right in terms of what the track typically looks like. There's so many different asset managers out there that every one is going to open unexpected doors at some point but it's definitely no less promising in terms of exit opps as banking... that is, provided you are dead set on some form of investment management in the long run, meaning AM or HF... or a select few other fields.

Alright, that's good news, I've just found that it's so much easier for me to get excited about investment management, and the prospects for me to get into IM vs IB straight out of my non-target are a lot more likely.

"Well, you know, I was a human being before I became a businessman." -- George Soros
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Nov 7, 2012 - 4:30am
Futures Trader Man:
BlackHat:
Depends what firm you go to, but yes you're right in terms of what the track typically looks like. There's so many different asset managers out there that every one is going to open unexpected doors at some point but it's definitely no less promising in terms of exit opps as banking... that is, provided you are dead set on some form of investment management in the long run, meaning AM or HF... or a select few other fields.

Alright, that's good news, I've just found that it's so much easier for me to get excited about investment management, and the prospects for me to get into IM vs IB straight out of my non-target are a lot more likely.

Is that really true? I thought AM was considered harder to break into pre-MBA.

Nov 4, 2012 - 4:38pm
above_and_beyond:
Are there any exit opportunities in the industry, like to F500 companies ?

Not that I know of... at least none that are particularly better than coming from any other part of what would be considered "high finance." People will give you consideration because you're obviously smart since you're coming from AM, but no clear transferable skill set that makes you much more desirable than someone from consulting or something that is more business-development and strategy focused. Disclaimer: I don't even know what people do at F500 companies.

I hate victims who respect their executioners
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Nov 5, 2012 - 8:21pm
BlackHat:
above_and_beyond:
Are there any exit opportunities in the industry, like to F500 companies ?

Not that I know of... at least none that are particularly better than coming from any other part of what would be considered "high finance." People will give you consideration because you're obviously smart since you're coming from AM, but no clear transferable skill set that makes you much more desirable than someone from consulting or something that is more business-development and strategy focused. Disclaimer: I don't even know what people do at F500 companies.

Haha,.. They drink the cool-aid, and pray Carl Icahn doesn't role up

Fear is the greatest motivator. Motivation is what it takes to find profit.
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Nov 7, 2012 - 6:30pm

Don't forget there is also institutional asset management too. Someone has to manage the various pension funds, university endowments, and accounts for museums. There are definitely a lot of places where you can work. You do not have to be tied to a a bank or mutual fund to take advantage of the exit opportunities.

Nov 8, 2012 - 12:02pm
EMM14:
Don't forget there is also institutional asset management too. Someone has to manage the various pension funds, university endowments, and accounts for museums. There are definitely a lot of places where you can work. You do not have to be tied to a a bank or mutual fund to take advantage of the exit opportunities.

Interesting viewpoint, I didn't think about that before. Thanks!

"Well, you know, I was a human being before I became a businessman." -- George Soros
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Nov 8, 2012 - 12:06pm

EMM14 you are correct but many of those jobs will be structured more like a FoF and you won't get the same fundamental analysis experience. Very few endowments that I work with are picking individual securities on their own. And, yes this will impact your exit opps.

Nov 8, 2012 - 10:24pm
cheese86:
EMM14 you are correct but many of those jobs will be structured more like a FoF and you won't get the same fundamental analysis experience. Very few endowments that I work with are picking individual securities on their own. And, yes this will impact your exit opps.

Yes this is true. Your overall involvement will depend on the size of the endowment you are managing. If it a small endowment for a small private university or museum you would be limited to picking managers. If you were managing an endowment like Harvard's or the Getty Trust in Los Angeles you will actually have direct management over individual securities and portfolios.

Aug 1, 2016 - 7:14pm

Asset Management Exit Opps - Opportunity to take an IB position (Originally Posted: 02/07/2007)

Hi, I have a opportunity to take an I-banking and Investment Management position both at Bulge Bracket Banks. I'm leaning towards the IM position for a various number of reasons, but I'm just curious are options like PE, Hedge Funds etc. open to those who worked in Asset Management? Thanks

Aug 1, 2016 - 7:15pm

I believe that your exit opps are higher in banking, though I could be wrong? BTW, your name made me seriously laugh out loud.

  • Slams
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Aug 1, 2016 - 7:16pm

I assume IB offer is for an analyst position...

Describe the IM position you are considering. Is it a "research associate" type gig? What would be your duties? What is the fund size and investment strategy? Are you investing client money or the firm's own capital?

Aug 1, 2016 - 7:17pm

exit opportunities in Asset Management (Originally Posted: 01/09/2010)

We all know that exit opportunities after working in IBD are pretty much limitless. What are the exit opportunities after an internship in AM in a major BB?
Is it worth it?

"What we can, we must; and because we can, we must"
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Aug 1, 2016 - 7:19pm

Exit ops after an internship?

Either they'll offer you a job or they won't. If you aren't offered a job there (or you don't want to accept the one you're given), you'll at least have had the chance to work in high finance. When someone asks 'why do you want to be a banker/trader,' you'll now be able to say something like, "After working in AM at [GS/JPM/MS/CS/etc.], I developed an appreciation for different roles in the industry, and I now know I want to be a [whatever job function]."

It might be an easier sell to say that you want to be a trader after interning in AM because you want the chance to run money and take risk.

Still, we're talking about an internship, so your exit opps are graduate programmes.

Aug 1, 2016 - 7:20pm

if you talking about internship, yeah like what the rest will say, graduate opportunities with the current BB..
and yes internship with AM is definitely worth it.. you have the chance to network as well

Aug 1, 2016 - 7:21pm

Asset Management Exit Opps - Thoroughly Confused (Originally Posted: 05/22/2010)

After reading through the Asset Management forum here, I am thoroughly confused. I know this has probably already been covered, but what fields within AM provide the best exit opps (not necessarily exit opps into banking) or any flexibility at all? All I keep hearing is that PWM is a dead-end path, but are there any careers in AM that actually lead somewhere else?

Disclaimer: I am an Asset Management noob and am trying to learn more about my options.

Aug 1, 2016 - 7:22pm

ok. so it all depends what you want to do. true it is kinda hard to go from pwm to ib/pe, but Asset Management is so broad. under asset management is literally anything that manages money. HF, PE, PWM, GWM, PB, IM, etc etc.

usually people who go into AM stay there, although it is such a broad topic. you need to tell us what you want to do.

-- "Those who say don't know, and those who know don't say."
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Aug 1, 2016 - 7:27pm

nutsaboutWS:
ok. so it all depends what you want to do. true it is kinda hard to go from pwm to ib/pe, but Asset Management is so broad. under asset management is literally anything that manages money. HF, PE, PWM, GWM, PB, IM, etc etc.

usually people who go into AM stay there, although it is such a broad topic. you need to tell us what you want to do.

Thanks for your reply, I want to distill this a little bit further. I'd appreciate if you'd provide me some insight. In your experience, are you aware of any investment managers for public clients exiting to PE firms? My gut tells me that the knowledge of debt instruments may be useful. Thoughts about that and other value someone looking to make the switch can bring to a PE shop? Thanks, again.

Aug 1, 2016 - 7:28pm

Asset Management Exit Ops - Currently looking at summer internships (Originally Posted: 11/03/2010)

Hello,

I am currently looking at internships for this coming summer in the area of Asset Management. What I am wondering is, what career path would be available assuming that I am offered a full time position? Also what other sectors of Finance would potentially be opened up for me to transfer into if I were to end up wanting to switch after a couple years in the industry?

I would like to get into one of the AM divisions of a BB but since I do not attend a target university I am keeping my options open. Eventually I would like to get into Private Equity but feel that AM lends itself more toward a career in Hedge funds.

Please let me know what you think

Aug 1, 2016 - 7:29pm

Most people who go into the Asset Management game tend to stay in it for long periods of time. However, you can exit into different avenues within asset management whether to funds-of-funds or endowments..etc. Some move on to hedge funds as well but you're right in that moving into private equity is usually more rare, though not unheard of.

Aug 1, 2016 - 7:30pm

The skill set required for PE is very different to AM. Having said that, if you network well and attend a top B-school this shouldn't be an automatic no. I would, however, recommend that if you are set of PE look into IB or even Management Consultancy at a top tier shop (e.g. MK, BCG, Bain, etc...).

Aug 1, 2016 - 7:31pm

"Asset Management" for Real Estate - Any Exit Ops? (Originally Posted: 10/10/2012)

The job is for an asset manager and entails managing over 2 million SF of commercial real estate located in 8 states.

After a couple years, what kind of exit opportunities can you expect? What about comp?

Aug 1, 2016 - 7:33pm

Compensation is really going to be across the board depending on responsibilities and company. Some Asset Management positions are purely hands off, analyzing performance and dealing with partners (who may be the ones actually managing the properties). Other positions (like mine) are totally hands on, dealing with every tenant, every lease, vendors, property accountants, partners, banks, lenders, etc. Compensation should increase with more hands on responsibility. The other half of this equation is the type of company. Small to medium sized family-owned operators are obviously going to pay considerably less than funds who are charging a 2% fee. Even larger privately held operators (like mine) are going to pay a lot less than funds. These guys are usually shrewd businessmen and do not operate with a lot of fat.

You could probably search Select Leaders (best RE career site) for Asset Manager positions for the last 60 days in all states. Most do not list pay, but you can probably get some comps. I would say from $80k-$100k on the low end as high up as $200-$250k if you are the main manager, hands on, at a fund. I could be wrong.

As far as exits, you could definitely move to acquisitions as mentioned above, or you could probably head towards PM at a RE fund if you stuck with this for 5+ years.

Aug 1, 2016 - 7:34pm

To echo baamboo, based on Google searches, etc., I've seen about that comp range as well... really far across the board -- hard to know what to make of it, other than what's already been said in this thread (nature of work, nature of firm, etc.). Would really be interested in what the most likely case scenario is for comp.

Aug 1, 2016 - 7:37pm

Asset Management Exit Ops - Looking for a definitive list on the typical exit ops (Originally Posted: 08/08/2013)

Just looking for a definitive list on the typical exit ops for a typical Asset Management position at a BB bank. Based on searches the typical path is to go to a Mutual Fund or a MM/Boutique IM firm. Is it also possible to go into a Hedge Fund or PE Fund? Unfortunately there is not too much information on AM compared to IB and S&T on this site.

Aug 1, 2016 - 7:39pm

Asset Management at BB -- exit opportunites after analyst stint (Originally Posted: 12/29/2014)

Hey everybody,

this is my first post, so sorry in advance if this post appears at the wrong forum etc

I have an offer for a FT position after undergraduate for an investment management position at JP Morgan - Equities ( NOT their private bank ) in London.

I was wondering what exit opportunities for such a position exist, is it possible to move to respected PE/ HF firms after Business school.
I want to attend Business school in the US , so is M7 possible, with such a background ?

Many thanks

Aug 1, 2016 - 7:40pm

so it's an AM research or portfolio management position? explain your background more?
If the position is in AM research or portfolio management, you can definitely get into MBA business schools<br /> ">M7 unless you really screw up at your job.

Not everyone is meant to make a difference. But for me, the choice to lead an ordinary life is no longer an option.
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Aug 1, 2016 - 7:41pm

Your chances at PE are slim, but HF, definitely very good. Prob better than most IBD backgrounds.

Not everyone is meant to make a difference. But for me, the choice to lead an ordinary life is no longer an option.
  • 1
Aug 1, 2016 - 7:42pm

Thank you for your answer, so to clarify it is within the product group European Equities, there are two possible roles and I am yet to find out where:

European Behavioural Finance Team:
"They continue to be at the forefront of the philosophy's development, managing mandates including long only, long/short, single and multi country, core and single style strategies, investing right across the market cap spectrum. Day-to-day responsibilities will include many different facets of portfolio management, from equity analysis and stock selection through to portfolio construction and client interaction."

European Equities Research Driven Process:
" track hundreds of key UK and European companies to assess their attractiveness as an investment opportunity. This involves regularly meeting with company's senior management, attending industry conferences and events and undertaking detailed fundamental analysis of financial reports. In-house equity analysis has an enormous influence on investment decisions."

Which one to choose if my aim is MBA business schools<br /> ">M7 and then a Hedgefund ?

Thank you !!

Aug 1, 2016 - 7:43pm

They both are excellent opportunities and will get you into MBA business schools<br /> ">M7 and HF. The latter will be better for your future HF career though. You will also have a small chance at PE with the latter.

Not everyone is meant to make a difference. But for me, the choice to lead an ordinary life is no longer an option.
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Aug 1, 2016 - 7:44pm

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Not everyone is meant to make a difference. But for me, the choice to lead an ordinary life is no longer an option.
Aug 1, 2016 - 7:47pm

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Not everyone is meant to make a difference. But for me, the choice to lead an ordinary life is no longer an option.
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