Breaking into Hedge Fund/PE

[nate10184]

I'm about 9 months out of undergrad working for a prominent investment bank and would really like to move into one of these industries. After interviewing I had several offers and in the end chose to go into a part of the business that really interested me even though it may not have carried the same level of "prestige".

My girlfriend did exactly the opposite, took the "best" offer at the "best" bank even though she'll admit she has little interest in the work she does. Now she is being hounded by head hunters and will undoubtedly have many interviews in the coming months. Apparently my group is not at the top of these head hunters list.

I guess I'm just curious how to go about breaking into these industries if I'm not being actively recruited. Its just frustrating because I know I have the desire and skillset - I'm just not sure how to get my foot in the door. For now I'm just trying to network with alumni and friends who have already moved into these industries but I feel like that really limits the scope of my search.

Did I totally screw myself by taking the job I'm in? I don't mind fighting an uphill battle I just wish I knew where to start. Any experience/insight would be appreciated.

 

[crazyquik]

Almost totally unrelated: Will having a JD and MBA help get into PE?

 

[gdl203]

9 months out of undergrad, so you've been working for 6 months? Gee... Can you please do some work rather than updating your resume and networking for your next job?

 

[nate10184]

Originally Posted by gdl203

9 months out of undergrad, so you've been working for 6 months? Gee... Can you please do some work rather than updating your resume and networking for your next job?

I totally agree with you and I do work hard in my current job its just unnerving to see so many peers jumping ship. There seems to be the sense that if you don't get into these industries very young then it will be very difficult to later. Would you disagree with this article?

http://www.nytimes.com/2007/09/16/bu...a1&oref=slogin

 

[itsstillmatt]

Originally Posted by crazyquik

Almost totally unrelated: Will having a JD and MBA help get into PE?
No, lower rate spreads will help you get into PE. I have a good friend who is about to graduate top 10 in his class at Stanford BS, and has worked at one of the five big PE firms. While they want him back, they don't have an office where he wants to be and he is pretty much shut out of PE even though places like Sequoia Venture Capital are recruiting him. It is just a tough time to get into that business. Of course, he is looking at top level shops, others may be easier to get in to.

 

[TheFoo]

The legal field isn't looking pretty these days. Do corporate lawyers have much of a shot at joining PE firms? I imagine it's rather difficult.

 

[haganah]

I don't know what you do, but there are janitors that also work at Goldman Sachs, "working for a prominent investment bank".

To me it seems that you're barely out of school, don't have relevant experience (I have no idea what you do but you said it's without prestige so who knows what that means), are asking for advice on a clothing website, and have decided to shoot for the moon with 2 different careers (PE/HF) that are hot because of the media attention. If it smells like a duck and all that...

 

[haganah]

Originally Posted by mafoofan

The legal field isn't looking pretty these days. Do corporate lawyers have much of a shot at joining PE firms? I imagine it's rather difficult.
They do more at distressed funds. Some do advisory work for restructuring firms as well.

 

[GQgeek]

Originally Posted by nate10184

I totally agree with you and I do work hard in my current job its just unnerving to see so many peers jumping ship. There seems to be the sense that if you don't get into these industries very young then it will be very difficult to later. Would you disagree with this article?

http://www.nytimes.com/2007/09/16/bu...a1&oref=slogin

You could always do very well at IB and then start your own fund.

 

[lawyerdad]

Originally Posted by mafoofan

The legal field isn't looking pretty these days.

Are you talking specifically M&A or IPO-type corporate lawyers? Otherwise I'm not sure I'm seeing the same thing (although I confess I probably pay less attention than most to perceived big trends in the business of law as a whole). I think those types of jobs tend to have boom/bust cycles that follow the business economy generally, although for excellent people there's almost always work to be found. As a litigator, I think I'm somewhat insulated from those types of swings -- big changes in the economy may mean the mix of cases I work on changes somewhat, but people are always suing each other regardless of the state of the economy (where's that knocking wood smiley?).

 

[TheFoo]

Originally Posted by lawyerdad

Are you talking specifically M&A or IPO-type corporate lawyers? Otherwise I'm not sure I'm seeing the same thing (although I confess I probably pay less attention than most to perceived big trends in the business of law as a whole). I think those types of jobs tend to have boom/bust cycles that follow the business economy generally, although for excellent people there's almost always work to be found. As a litigator, I think I'm somewhat insulated from those types of swings -- big changes in the economy may mean the mix of cases I work on changes somewhat, but people are always suing each other regardless of the state of the economy (where's that knocking wood smiley?).

My firm does a lot of real estate and structured finance, so you can imagine that they are feeling some hurt. I've heard of lawyers moving into finance, but I've never personally seen it and I can't fathom what would qualify them for the move. My practice group handles fund formation and advises on securities compliance--I don't see how either of those would be useful at a PE firm unless you're working there as a lawyer.

 

[GQgeek]

I met a pair of anti-trust lawyers from NYC in Peru at the rainforest lodge. They seemed to be involved in a lot of M&A related stuff. They didn't work directly for the banks though. One worked for a big firm and the other worked on his own and did consultancy work.

 

[GQgeek]

Originally Posted by lawyerdad

Are you talking specifically M&A or IPO-type corporate lawyers? Otherwise I'm not sure I'm seeing the same thing (although I confess I probably pay less attention than most to perceived big trends in the business of law as a whole). I think those types of jobs tend to have boom/bust cycles that follow the business economy generally, although for excellent people there's almost always work to be found. As a litigator, I think I'm somewhat insulated from those types of swings -- big changes in the economy may mean the mix of cases I work on changes somewhat, but people are always suing each other regardless of the state of the economy (

).

fixed

 

[nate10184]

Originally Posted by haganah

I don't know what you do, but there are janitors that also work at Goldman Sachs, "working for a prominent investment bank".

To me it seems that you're barely out of school, don't have relevant experience (I have no idea what you do but you said it's without prestige so who knows what that means), are asking for advice on a clothing website, and have decided to shoot for the moon with 2 different careers (PE/HF) that are hot because of the media attention. If it smells like a duck and all that...

Fair enough.

1. No I'm not a janitor, I'm an analyst. And I'll be the first to admit I don't have much experience but neither do any of the 23 years olds who get hired up by these firms.
2. To clarify what I meant by prestige, I was refering to the financial sponsors and M+A groups, as opposed to industry groups, etc. I'm in real estate and like mafoofan said now isn't the best time to be in real estate.
3. As far as posting on a clothing website, I think I stated that I'm primarily using alumni and friends for advice, still I know there are many here who work in these industries and at the very least I thought it would stimulate a good discussion...

 

[GQgeek]

Originally Posted by nate10184

Fair enough.

1. No I'm not a janitor, I'm an analyst. And I'll be the first to admit I don't have much experience but neither do any of the 23 years olds who get hired up by these firms.
2. To clarify what I meant by prestige, I was refering to the financial sponsors and M+A groups, as opposed to industry groups, etc. I'm in real estate and like mafoofan said now isn't the best time to be in real estate.
3. As far as posting on a clothing website, I think I stated that I'm primarily using alumni and friends for advice, still I know there are many here who work in these industries and at the very least I thought it would stimulate a good discussion...

I doubt any hedge fund is going to hire you after only 6 months as an analyst in IB. I can't imagine any employer wanting someone that jumped ship so quickly. You'd also burn bridges imo (or maybe not, someone that's in the business can better say). I say do your 2 years and then go off to MBA school like all the other analysts. At that point you can try and make a switch. And it's not like you're going to go hungry in any area of IB. I mean really...

Question for the IB guys though. When you're being recruited out of an MBA program, can you request a specific industry group or M&A during negotiations if they want you? Or do you get stuck wherever they need to fill shortages for associates? Or is it something in between? I know as an analyst you have absolutely no say, but is the situation any different at the associate leve?