Private Equity to MUTUAL FUND - WHY?

Associate Manager in IB - Ind

Hi, I am a long time poster here. To cut a long story short, I recently had to leave my job in PE in the USA due to a visa problem. I am an international as you guessed. I am interviewing with a small equity mutual fund run by highly capable people in Asia. I am keen on the role because I think I can learn from them and think their due diligence process is quite unique. They do active stock picking. I don't have any experience in public markets though - my background is in strategy, ibd and PE (~1.5 years).

I am planning on saying that I don't enjoy the process-management side of PE, which you consume too much time on - that can be better spent analyzing investment opportunities. You can also easily get scorecards and feedback through the stock exchanges, and lack of liquidity isn't generally an issue. Easier to find investment opportunities and can execute quickly on your thesis.

WHAT ELSE DO / CAN I SAY? TRUTH IS I AM INTERVIEWING AT A LOT OF PLACES. State of the PE industry currently in this region - where i am based - is not good, so the job market is terrible. HENCE I am interviewing at a few different places where I think the firm has a great track record since inception, is being run by great-pedigreed folks (in terms of the education and prior background of its investment professionals), is entrepreneurial and has a differentiated style of investing (for this fund, the DD process). I am indifferent between private markets and public markets.


Comments (4)

  • Associate 1 in PE - LBOs
Jan 14, 2020

I don't know the answer to this, but since I'm also interested, here's a bump

Jan 14, 2020

By far the most important thing is whether this small mutual fund has AUM and can sustain their AUM. The mutual fund industry in Asia is highly competitive particularly in equities. Pedigree doesnt matter if they can't bring in the AUM. What client base do they have? Are they targeting institutional asset owners (insurers, pensions, endowments, government bodies) or retail/private banking clients? Think hard about what edge your folks in a small firm would have. Large mutual fund asset managers have low fees, a large team of PMs and analysts which can cover more companies and a well established investment process.

    • 1
  • Prospect in IB-M&A
Jan 15, 2020

Where are you from originally

  • Associate Manager in IB - Ind
Jan 15, 2020