Having difficulty as a generalist - what is the value of a generalist program?
I used to be in a coverage group (e.g., industrials, healthcare) where I studied the relevant field in undergraduate (e.g., industrials = mechanical engineering, healthcare = pre-med, etc.).
Now I am in a generalist program and am struggling. After more than 7 years of specialization I am realizing how hard it is to ramp up on an industry - you can learn some facts, but deep pattern recognition and a network of personal advisors (one which, for my industry, I have meticulously developed through networking over the past 7 years) do not appear overnight.
I am wondering what to do here. On one hand I could market my industry specific knowledge and parlay currently being an investor to go specialize elsewhere. In the long run, I still plan to specialize in this field. Also, I could huck it out and get the generalist experience. But I am increasingly questioning the value of doing so - what will this net me? I am here to ask for advice, and mentorship (as much as you can have through the forum, which in my experience is quite a lot). Thank you very much.
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What level are you? In today's market, even "generalist" PE firms will have the investment team verticalized at the VP+ levels. As an associate you learn as much as you can across the board and find what you like, and specialization or verticalization usually happens naturally.
I'm a 1st year Associate. Like I mentioned, I studied Industry in school then did three years of Industry coverage / investing elsewhere, and now that I'm a generalist for the first time, it's a very jarring experience.
As you said, you learn as much as you can across the board and find what you like. However, I've known what I've liked for almost a decade and already have a strong background knowledge set / network, so I'm wondering why I'm here in this generalist program if I know I'm going to go back to Industry investing in a year and a half anyway.
Sounds like you already know what you want to do. Everything you're saying is valid. Is there a natural exit where you can lateral out without burning a bridge - is it a 2 or 3 year program? If so, jumping then is the natural and risk-averse way to leave.
As always, even when you know it's not the long-term fit, staying professional, earning great lifelong recs, etc. is still worth it so stay disciplined even when thinking about exit.
That's right. It's a two year program. Part of me is wondering about leaving now though. The other part thinks it may be wise to stay. I am hearing from what you're saying that it may be worth it to sit tight. Thank you for the advice. I think I will be more patient in thinking about this.
Well, that was the risk averse answer. Not the only answer. Maybe the move is you keep your ears peeled / casually chat with headhunters now and if something comes up that is truly compelling you can lateral sooner but you keep the bar really really high and stay honest about that.
I would sit tight. Generalist experience is super valuable - by the end of it, you will be able to break down any business model, figure out unit economics quickly and generally become more proficient in investing. It is also a great experience for starting new networks and meeting new business contacts. I hear you, it is painful to learn a new industry every day, but it is worth it. Even if you end up specialising later on in your chosen sector, you will always be a very educated investor - thanks to this experience - including for PA purposes. That's very useful, trust me.
What is the staffing situation like at your firm? Understanding you're probably only 2-3 months in it may be hard to tell, but I have seen some friends successfully work themselves into a niche in a generalist group.
Things like showing your industry expertise in a few reps goes a long way towards endearing yourself to the partner or VP so you're top of mind whenever they look at targets in the space. You can also try talking with your staffer (be sure you tread carefully here) and let he/she know that you're really interested in Industry and like the team that focuses there at your firm and would like more opportunities. Probably better to go with the "I like this" instead of the "I don't like these" to make sure nobody is rubbed the wrong way.
Only one perspective, but I would think legging it out at least for a little while longer would be worth it. Goes a long way with relationships at your current firm, and then makes for an easier story for your future employers that you at least gave it a good shot (again only my opinion).
This is very good to think about. For anonymity I won’t respond to specifics but I appreciate you giving me good food for thought.
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