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Congratulations, you ARE the exit opp...
OK then, I will re-word that... what are career prospects down the road? The issue is that I am very interested in corporate finance private equity type work down the road. I know you will are tempted to say "then go to a BB IB," but the twisted reality is that I actually have a better shot at reputable HF's right now than I do IB's. Reason is that it's an off cycle hire, I have solid HF and IB experience via internships, and most IB's have bureaucratic and overstructured recruiting schedules, making it really difficult to get in there off cycle, even if you're more qualified than half the analysts they already hired for the upcoming year.
Point is, I have another option that would involve operational work at an energy company for a bit then the corporate strategy group working with a team on their M&A and A&D deals. I just don't know where it leads vs where a good energy HF analyst role would lead.
My worry is that the HF role somewhat silo's you into HF's or HF style investment management unless you want to reset by going to b-school, which is an expensive and somewhat unnecessary "reset" in my opinion for someone who already holds a business degree (if it can be avoided by solid foresight).. Obviously there are exceptions to that, but still.
Thoughts regarding what the HF role sets you up to do later? Besides starting your own fund.....
It's so tough to plan every single year of your professional life. I would just go with it. You're obviously smart, so I would just keep your ears/eyes open for new and interesting opportunities, but a hedge fund job directly out of undergrad (especially in this market) is a total W and you should just do it.
You do know that there are hfs out there that make private equity style investments, right? Why not try to transfer to one of them and try to those teams?
Besides the mega funds, what are some examples of funds that have somewhat of both styles--public and private?
Tiger Global
Most large multi-strategy HFs do... Almost every distressed shop does as well Highbridge, Baupost, Mt. Kellet, Fortress, Cerberus, York, Elliott etc
Are you sure? And for the ones that do, do your mean they simply do private investments? Or they actually get into the details of the private targets capital structure, management, and operational growth? I've always seen most HF's as being pretty dismissive of that stuff (for the most part at least) and focus mainly on capital appreciation--i.e. if they think a company is going south they'll just pull the money out, rather than going in and trying to turn it around, via financing or operations.
Ermm well last time I checked PE firms are pretty focused on capital appreciation too...
Also I think you drastically overstate the "stick-to-itiveness" of PE shops once their investments go sour. They'll keep playing their hand if they think there's value there but many sponsors just washed their hands and walked away during the crisis, or left zombie portfolio cos still lumbering around till default with the equity way out of the money.
That aside, many large hedge funds (especially those with a distressed focus) do control buyouts or distressed-for-control transactions where they are one of a handful (if not the sole/majority) shareholder and obviously have the involvement in capital structure and management that comes with that. It's rare that they claim the same level of operational turn-around focus that a lot of mid-market buyout shops do, but it's not like the average BX associate is out doing six sigma implementations at some foundry in Indiana.
In addition to the funds listed above (Cerberus and Fortress being the most "PEish" in my view in the sense of having dedicated buyout teams/funds), Oaktree and Centerbridge do a decent amount.
I interviewed w/ a hf that focused on making purchases of stock from public companies directly from the management (these being micro cap stocks) so they could do R+D and otherwise continue operations whereas they might not otherwise be able to, in a VC type way. There are a lot of different strategies out there.
exit opps of hedge funds (Originally Posted: 01/07/2008)
just curious if anyone left a hedge fund job to do something non-hedge fund.. i almost have this impression that once you are in a hedge fund, it is hard to go back to BB banks, go into PE (possibly mid-market would be ok though), consulting and corporations.
with the economy now doing poorly, there must be an added risk of joining a hedge fund nowadays
Bump. Any thoughts here? Not going back to banking or to PE, but any other routes that people have taken?
Other types of Asset Management Research/strategy at a bank If you're at a quant fund, something science/engineering related
Some people make it back from hedge to PE. One of the senior staff at KKR's profile shows small hedge --> Eton Park --> KKR.
unless there are three people with that profile, i'm pretty sure the KKR person you are referring to is either their new head of real estate or works for their hedge fund. either way, not pe
why would anyone want to go to banking or even pe from a good hedge fund is the real question
If you like the work more... personal preference, but I doubt that is often the case
Some people like the transactional/deal-making aspects of PE
Out of the many jobs you mentioned, the easiest one to transition from a HF would be to PE. This is up course relative, and PE is the closest thing to the work being done at a HF. This is also why you see a lot of hybrid funds now a days with both PE and special situation activities. The market has changed a lot over the past couple of years, and to make money firms are being flexible and investing across the capital structure, instead of just a pure PE model. You see that with PE firms forming HF vehicles and HF's doing a lot more private deals (PIPE's), hence public and private equity, which is basically hf and pe, though its very gray
You always have the option to settle down and exit to 'industry' don't you?
Hedge Fund Exit Options (Originally Posted: 08/30/2013)
What are some of the most common exit options coming out of hedge funds? Just trying to see what may be options available if I go work for a hedge fund and find out that it's not for me... Thanks
Usually the exit options are to other hedge funds. The skill set is not that transferable. However, I have received job offers from public companies for various finance / strategy roles, and there is always a chance that you could move to an IR role at either a public company or an IR firm. You could also probably transition to academia or a regulatory job if you have the right credentials and experience. In rare cases you could get involved with operations at a company in a management role. There is no obvious place to land after a hedge fund, it will be whatever you make it.
Your own island?
Other than the above pe or even banking may be options (if you come from a banking background and were at a ls fund), sell side ER. But there is def no path
Jobs after hedge fund analyst…not at a hedge fund? (Originally Posted: 04/10/2014)
Hi everyone. I know this is a hugely open-ended question, but would love to hear some answers, even if they're just anecdotes. What are some jobs - not at a hedge fund - that you or someone you know have gotten after being an analyst at a hedge fund?
I've been an analyst for the past four years at a good L/S equity fund, and I'm pretty burnt out. I have no desire to stay in the industry and try to become a PM or get another analyst gig elsewhere. I know there are plenty of opportunities out there in other industries with my background, but I'm curious what others have done as it might open my eyes to something I didn't even consider. Would love to hear stories or ideas. Thanks.
I know a few guys who've been hired to high-level positions at companies they covered/invested in for a long time. You end up with a lot of industry connections so that's always a route to think about traveling if you have the rolodex to rattle a few cages.
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