HF to IB

I started at a HF as a junior analyst about 5 months ago, straight out of undergrad. I've learned a ton, been given a lot of responsibility, actually been given pretty large sectors to cover, made more good calls than bad, lots of pats on the back with the occasional grilling because of a major fck up, sat on the receiving end of the soft dollar flow...you know, all the good stuff that comes with the buyside. Not to mention the "better" life style (12-14h/weekday, with 1-2 Saturdays per month).

Given all this, I just don't see myself doing this in the long-term. Don't get me wrong, the buyside is great (see reasons mentioned above), but I'd rather be closer to the actual assets I invest in, and not just buying/selling peices of paper. Hence, my goal of getting into IB, and in the long-run, PE/VC.

I'm looking to make jump before I hit the 1-year mark just so I don't get pigeonholed into a "HF guy".

Anyone seen this happen before? Would IBs have any major reasons/reservations not to hire someone from an HF?

 

I'm sort of in a similar situation. Only difference is I have some IB experience but I'm not willing to go back to IB just to break into PE/VC.

What kind of fin. modeling experience do you have ? Do you have IB internship experience ? That will probably determine your chances more than anything else.

The other problem obviously is the limited number of positions out there and the surplus of laid-off IB analysts/associates applying for them.

I'm not trying to discourage you but 5 months in, with no IB training, its going to be a long shot.

 

No discouragement dude...not like I am unemployed. Plus I dont mind waiting another year before I make the jump.

I model on the job, not as extensively as an IB or ER dude, but I do a bit.

As for IB work, but Ive tried to mold my resume to show some of the similarities: valuation models, lots of comp sheets, and the occasional pitchbook/marketing material for the launch of our new fund.

What you mentioned is excatly the problem Im running into. I landed a few interviews but ultimately got beat out by laid off ex-bankers.

 

I guess your situation can both be a blessing and a curse. Some people might not pigeonhole you since you only have 5 months of HF experience under your belt, others will hold the lack of experience against you and interpret the career switch as a sign that you're not focused.

Your best bet is to do what you're doing, mold your resume to be as IB-friendly as possible obviously. Look at Monster, Doostang, Glocap, Mercury Partners..all the usual suspects.

Also, after a year or so, don't hesitate to apply to some PE/VC jobs, you might have a small chance of landing an interview, but there is a chance.

 

Not sacrilegious considering the fund you work at doesn't sound like the type of place IB analysts are gunning for. If you lateral I don't see how you wouldn't start as a first year analyst, and I know people who lateral in and start their analyst stint at a bank at 24 or 25. It can be done, definitely not easy and not a structured path.

 

Well it would certainly add credibility to your cv.  But as to experience it would depend on what type of HF it is and what they ask you to do... Anyhow, you should definitely take it unless you get a PE offer ( which perhaps is more relevant to IB)

Btw, Congratulations on the offer...! It must not have been easy to secure it. :)

 

you want the HF over BB. and this guy above is wrong about PE, at least in the current climate.  Any of those firms are good for long term placement.  think about staying and not about IBD.

 

Thanks alot, I'm really happy about the offer (and realize I'm really lucky!). I'm not sure which group I'll be working in exactly. Hoping to get more involved in the event driven-distressed space. Either way, I guess it just depends on your willingness to learn about the industry. Whether you are doing distressed at a HF or M&A at a bank, it's probably possible to learn a ton.

 
overpaid_overworked:
Anything is possible if you try hard and beleive in yourself. The better question than "can they?" is "why would they want to?". You'd have to deal with getting consent from all the investors, talent issues, infrastructure, etc.

True, but I figure in the long run they would end up holding a lot more money in their books as an IB.

 

Didn't Citadel create a broker/dealer arm? I think it's had pretty mixed success and some parts have been shutdown. This question is not practical for all but the largest multi-strat funds.

 
David Dodd:
Didn't Citadel create a broker/dealer arm? I think it's had pretty mixed success and some parts have been shutdown. This question is not practical for all but the largest multi-strat funds.

Agreed, same goes for PE, if' you've got money, and the inclination to tell people what to do with it you probably could open an ibank arm, but frankly I'm moer interested in this ice cream idea now.

 
<span class=keyword_link><a href=http://tinyurl.com/3nunsmz target=_blank rel=nofollow>David Dodd</a></span>:
Didn't Citadel create a broker/dealer arm? I think it's had pretty mixed success and some parts have been shutdown. This question is not practical for all but the largest multi-strat funds.

Citadel did try to create an investment bank. Ken Griffin wanted to challenge Goldman and the biggest investment banks. The whole experiment didn't last long. They ran through at least a couple Head/Director of Investment Banking Division in 2-3 years before they shut the experiment down and sold off the pieces. With that said, my general feeling is that if Citadel couldn't pull it off it will probably be quite difficult to do. They are huge and would have had the assets to challenge the big boys. The only thing that wouldn't make Citadel an ideal place to try this is that Ken Griffin is a notoriously brutal boss and from what I have read the Heads of Investment Banking he hired eventually just wanted to leave due to difference of opinion on how the division should be run.

 

Extremely hard to get in at a good HF before doing a 2 year stint on the sell side first. For most, the only reason to go to the sell side, is to leverage that experience to move to the buy side. I'm assuming that you're asking this because CF -> IBD is super hard to do?

 
BTbanker:
Extremely hard to get in at a good HF before doing a 2 year stint on the sell side first. For most, the only reason to go to the sell side, is to leverage that experience to move to the buy side. I'm assuming that you're asking this because CF -> IBD is super hard to do?

More of a curiosity question than anything else.

Here to learn and hopefully pass on some knowledge as well. SB if I helped.
 

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