elite HF -> mega-fund PE

Just as some background, I did 2 years of banking then did 2 years at a elite hedge fund. I'm contemplating becoming an associate at a mega-fund PE firm, but I know this is an uncommon career choice. Would any of you consider leaving an elite hedge fund role to work at a mega-fund (like at Carlyle, KKR, Blackstone)? Why or why not? (I know "elite hedge fund" is fairly unclear here, but I mean more specifically the sort of HF role that pays in the Apollo range without the insane work hours.)

Comments (4)

  • Prospective Monkey in Investment Banking - Mergers and Acquisitions
Sep 10, 2019

Why do you want to move? is the HF a MM or SM?
Curious how the transition would be. Best of luck.

Sep 10, 2019

Single manager


1) no idea what job I will find - there's not many good hedge fund seats out there.

2) PE funds are far better at training junior folks that HFs.

3) I have an industry focus that happens to have very few seats either in PE or HF. this specific PE fund is very successful in this industry vertical and it would be hard to find an equally good HF seat focused on this vertical.

    • 1
Most Helpful
Sep 10, 2019

Some things to consider:

1) Do you prefer the daily volatility of public markets (daily mark-to-market) or slower paced and less liquid private markets? Can you handle the stress of seeing your positions marked daily?

2) How risk averse are you? In the hedge fund world you're only as good as your last year and you can be pushed out at any moment. There is little to no job security. The plus side is that comp, at the right shop (York, Elliott, Citadel etc.) can be fantastic (7 figures and more) in a good year if you're good. In the PE world you have greater career stability but the real comp is tied up in carry and will depend a lot on the state of the market when it comes time to exit the fund's investments.

3) Hours/lifestyle. Depends on the strategy but I think public markets roles tend to have better hours than deal making roles. Not so much in the sense of hours but in the sense that you don't need to be chained to your desk in the HF world.

Sep 12, 2019