Investment roles to IR/capital markets?
I currently work at a MM PE and want to explore a path to IR / capital markets roles. I think other than WLB, one of the considerations I find non investment roles interesting is the potential mobility (moving companies, moving geographies etc) though arguably due to less carry ties. I find myself become more disillusioned with the carry dream in the last 2 years after joining the industry and understanding how it works, and I do not see myself staying at a firm for 20 years for the hope of getting $20-30m. I also feel it's quite difficult to move around as IPs once you are above VP - you are likely pigeonholed into your industry (and a sub-sector of it) . I'd much rather prefer a job that gives some more flexibility in other aspects of life and thought IR/capital markets could be a starting ground to explore.
Has anyone done a similar move and how did you position the story? I feel people will automatically assume someone wants to move from investing to IR for the better WLB which I am not sure if it's a good start for a conversation..
Based on the WSO threads and discussions, transitioning from investment roles to IR or capital markets is indeed a path some professionals consider, especially when seeking better work-life balance and greater flexibility in terms of mobility across companies and geographies. Here’s how you can position your story effectively when making this move:
Highlight Transferable Skills: Emphasize the skills you've developed in your MM PE role that are directly applicable to IR/capital markets. This includes deep industry knowledge, strong financial analysis capabilities, and the ability to communicate complex information clearly and persuasively.
Focus on Strategic Intent: Rather than leading with the desire for better work-life balance, frame your narrative around strategic career growth and the desire to leverage your expertise in a role that impacts the firm more broadly. Explain how IR/capital markets roles would allow you to use your skills in new ways that align with your career goals.
Demonstrate Understanding of IR Roles: Show that you have a clear understanding of what IR and capital markets roles entail. Discuss how these roles are pivotal in shaping investor perceptions and maintaining investor relations, and how you can contribute to these areas based on your background.
Network with IR Professionals: Engage with individuals currently in IR or capital markets to gain insights and advice. This can also help in getting referrals and making a smoother transition.
Tailor Your Resume and LinkedIn: Adjust your resume and LinkedIn profile to highlight experiences and skills relevant to IR and capital markets. This includes any direct interactions with investors, experience in fundraising rounds, or participation in roadshows.
Prepare for Interviews: Be ready to discuss why you are moving away from pure investment roles. Prepare to address the common assumption about work-life balance by focusing on your passion for broader strategic roles and how you see your career evolving in IR or capital markets.
By focusing on these strategies, you can effectively position yourself for a transition to IR or capital markets, making clear your strategic reasons beyond just seeking better work-life balance.
Sources: MM HF IR analyst looking to lateral to MF PE IR, need career advice, Moving from Asset Management into IB / PE, Q&A: Barclays IB to MM Private Equity, ECM -> Coverage -> MM PE?, How to transition from Technology Consulting at a Tier 2 into MM Private Equity?
Bump
Bump, interested in comp and lifestyle
Many folks in IR are ex-PE/IB so I don't think this is a difficult story to tell, or bad to blame it on WLB. You will take a decent pay cut, so I think it's fine to point to better hours but also wanting to stay in finance and finding PE interesting. That is really the main draw of these roles.
Mentioning mobility / optionality is more of a red flag IMO... while true, you don't want to tell your potential team about how you want to be able to move firms.
LOL bro keeps posting about IR across different accounts to cope with the fact that he’s not in an investing role. Take it easy bud IR might be a nice gig but will never take priority over investment professionals.
This is a really asinine way to look at IR. The days of IP taking priority over IR are long gone. Why? Mostly in part due to the emphasis on AUM growth, product expansion, competition, and the inability for most funds to outperform the S&P… let alone keep pace. The days of financially engineering your way to outperformance and Capital raising is over. IR has become far more important over the last 5 years alone, where you’re seeing so many more MFs and UMM’s significantly build out IR teams while cutting lackluster investor groups.
It’s a great gig and is getting even better. If you grind, you’ll earn $1M+ total comp by 30. By 28 I was earning ~$700k in cash, $1M+ with RSU and Carry. I also work no more than 50-60 hours/ week. Last year I got to travel to LA/ PHX/ SLC/ Den/ and more for free to entertain my LPs.
Long story short, stop listening to these salty IB/ PE AN/ ASOs who hate they make virtually the same money at that age and are stuck in office working on mundane shit. Sorry but it’s true.
Is career trajectory and comp the best at the MFs I assume? I have heard some of the public MF also comp their IR team incredibly well relative to others, could you speak to that?
Any tips for making the move over from a research seat in the HF world with 3-4 YOE? Would an MBA make sense to make the switch?
At a point in life where I’m tired of being an excel jockey and don’t want to grind it out for another 10 years to be a PM.
IR seems like a logical move that would allow me to stay in a markets based role while leveraging my soft and technical skills.
Thanks for the reply. Do you mind sharing your progression within IR? Have you always covered pe? At what level did you receive carry?
Is there a meaningful difference in comp between MF PE, PC, and RE IR teams?
Hi, current IB analyst very interested to learn more. Could you possibly DM me please? Thank you so much
Is there a meaningful difference in compensation between salespeople and product strategists at the MF level?
Any drastic differences between PE and PC IR?
Yes. PE charges higher fees and generally can comp better (incl higher carry). There are always exceptions. fwiw I worked in PC IR and moved to PE IR.
Bump. For PE IR are your LPs always gonna be institutional clients or HNW individuals as well?
Wealth is growing but the broader industry (and focus for talent) is still mostly institutional. Wealth is more common in VC and MM growth. Large cap buyout/UMM and direct lending are mostly institutional.
Who are the headhunters for IR roles?
Following. Very interested in making this move as well.
Former deal team person that made the move recently to IR. I think the tldr is the work is really easy compared to what you were doing before and it’s easy to stand out since the rest of the associate pool can barely use outlook let alone excel. If you’re super analytical like me you’ll probably find the work very low value add and kind of unfulfilling.
So far I haven’t been thrilled with the WLB (or lack thereof) but it’s still less than my last job. Funny enough my comp actually is a lot better than I would’ve made as a Senior Associate at my old fund so I’ve kind of just been taking it in stride.
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