Transitioning from Private Equity to Asset Management
After four years at an operationally-focused private equity fund, I am on track for a VP position by year-end. Prior to this, I worked as an investment banking analyst at a boutique firm. Overall, my experience has been positive, but I am feeling a bit burnt out due to the slow pace of deal activity. I’ve noticed that I’m spending less time on underwriting and more on portfolio management, especially given the current challenging macroeconomic conditions in some of our markets. Additionally, the fluctuations in work-life balance and the hectic nature of deal cycles are taking their toll—it’s difficult to take more than a week off each year, and even long weekends are hard to come by.
I’m seriously considering a shift to a more market-facing asset management role (liquid credit, public equities, direct lending, etc.) where I can dedicate more time to evaluating investments and hopefully achieve a more stable work-life balance.
However, my network leans heavily towards M&A due to my career trajectory, which makes it challenging to break into asset management and secure interviews for relevant roles. I’ve been reaching out to the traditional private equity headhunters I used during my banking days (such as Amity, Odyssey, CPI, SearchOne, Ratio, etc.), but most of their opportunities are PE-focused. I’ve also been applying for positions online, but from my banking recruiting experience, I know that this approach often lacks effectiveness without strong connections.
Are there specific headhunters who specialize in asset management roles that I should connect with? I’ve also made some good progress with a couple of long/short fund pod shops, but I’m uncertain about whether that aligns with my long-term career goals in terms of culture and intensity.
Any insights or guidance would be greatly appreciated! I’m not in a hurry since I’m on a promising path in my current role, but I’m eager to explore what’s available in the market.
One response
It sounds like you have a solid background and relevant experience that could translate well into the asset management space. Transitioning from private equity to asset management can be challenging, especially given the differences in focus and culture, but your operational background and analytical skills should be a strong selling point.
Here are a few suggestions to help you navigate this transition:
Expand Your Network: Since your current network is more aligned with M&A, consider reaching out to professionals who are currently in asset management roles. Use platforms like LinkedIn to connect with individuals from firms you’re interested in. You can also leverage alumni networks or industry events to meet people working in asset management.
Target Headhunters Specializing in Asset Management: In addition to the firms you already know, you might want to connect with headhunters that specifically focus on the asset management industry, such as Glocap, Hudson City, or Selby Jennings. They may have more opportunities that align with your interests in liquid credit, direct lending, and public equities.
Highlight Relevant Skills: When applying for roles, make sure your resume and cover letter emphasize your investment evaluation skills, any relevant financial modeling or analytical work you’ve done, and your understanding of portfolio management. Be clear about your desire to transition into a market-facing role.
Consider Informational Interviews: Conduct informational interviews with professionals in your target roles or firms. This can give you insights into the culture and expectations of asset management positions. It might also lead to referrals as you express your interest in making a transition.
Broaden Your Focus: While you may have a preference for specific areas within asset management, keeping an open mind about various roles can increase your chances of finding a suitable position. For instance, exploring more operations-focused roles or roles in firms with a culture that aligns more closely with your values might lead to fulfilling opportunities.
Stay Informed: Keep up to date with market trends in the asset management space. Being knowledgeable about what’s happening in various sectors and how macroeconomic conditions are affecting the markets will help you in interviews and discussions.
Leverage Your Current Role: Since you are on track for a VP position, consider how you can leverage your current position to enhance your transition. If there are opportunities at your firm to engage more with the investment side or with external funds, take those on to build more relevant experience.
Good luck with your transition! It’s great that you’re taking the time to consider what you truly want in your next career move, and with your experience, you have a strong foundation to build on.