Overview of Investing Jobs (Venture Capital, Private Equity, Hedge Funds)
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- เผยแพร่เมื่อ 6 มิ.ย. 2024
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Venture capital, private equity, and hedge funds are three of the most popular types of investing jobs. All of these roles are common exit opportunities after investment banking. Each of these roles has a different approach to investing and focuses on different kinds of companies. In this video, we'll discuss how each of these investing jobs work, what their investment criteria typically looks like, and how much they can potentially earn. Note that figures here are broad estimates and are based on North American statistics.
0:00 - Overview of Investing Jobs
1:36 - Venture Capital
3:12 - Growth Equity
4:01 - Private Equity (Buyout)
5:57 - Hedge Funds
8:49 - Salary Potential of Investing Jobs
Peak Frameworks is a business career prep service started by Matt Ting and Patrick Fong, who have each spent several years working in investment banking and private equity in New York and Silicon Valley. Matt and Patrick met at Evercore, a top tier investment bank, and over the years have tutored and coached dozens of candidates to land their dream business job.
Matt Ting: / matthewting
Patrick Fong (HBS 2021): / patrick-fong-0b773041
#PrivateEquity #HedgeFunds #VentureCapital
When did you know you were ready for buyside recruiting?
I feel like on-cycle my year was so early most people didn't really feel ready to be honest. This year is anomalous in the sense that analysts have over a year to prepare. I would say once you can comfortably talk about your deals to someone in the industry and when you can build an LBO model within 2 hours, you should be good.
The slide at 0:45 is the best summary I have seen of different jobs in investing. Thank you!
This is hands down my favorite investment content on TH-cam. Your delivery is so thoughtful and clear. I currently work for a tech company who serves the private capital markets. Your content has helped me learn more about my target market. Thank you
Great video thanks Matt. I think a video specifically on Growth Equity would be really useful too.
Such a great video and channel!
Lovely video man, thanks!
This video is really helpful and informative. Thanks for sharing!
This channel will skyrocket
because of its quality of content
we need more helpful videos like this!
Amazing channel; I enjoy following the content.
It would be great to see more on VC, which has grown substantially since 2019; deal flow, term sheets, day-to-day, etc.
Why is VC growing?
You mentioned the other industries like infrastructure or real estate project management where investing skills can be used, would you cover more on that in a future video?
"The long short industry tends to have pretty volatile career outcomes." Picture of Melvin Capital's logo on the side 😂
Despite this year, Melvin still definitely crushes it overall! Some of the most successful people I know ended up there. Probably not a great bonus this year though...
Thanks for sharing! :)
thanks for sharing!
Cheers for the info
Can you make an overview of the path to IB to PE/HF. Currently attending a Semi target and want to get to the buy side as quickly as possible
Once you get to IB, it's pretty much just meeting with headhunters and then going for it. Provided you're at a top investment bank, there's really not that much more to it. You can go directly to either PE or HF.
Hi Matt, very insightful videos, thank you for pumping them out every month! I’m an international prospect for IB and eventually PE/HF at a target, and wanted to know how friendly PE /HF firms are with H1B sponsorships, in your experience?
During your time at Silver-lake and Providence, were you on H1B or TN? Thanks!
PE tends to be marginally better for visas from my experience. I was on a TN at Providence and only interned at Silver Lake so believe that was a J-1. They both knew upfront that I was a Canadian citizen.
Would you guys consider doing a video about corporate banking? There isn't a lot of information out there about it and i would love to learn what corporate bankers do and what their roles are. I know it isn't the same as IB but i know some banks do house them together. Really enjoying the content btw!
Can consider it, but I don't have a ton of friends in the industry so hard to get good info about it. Maybe if there's enough interest
Can you do a video on quant finance and how different it is to traditional finance? Thanks!
Sorry mate, don't know enough about quant finance to do this.
@@PeakFrameworks on the off chance that you are able to get in contact with someone who is an expert in quantitative finance, would you be able to make a collab video?
great video dude!!
i´d like a your opinion about the education someone needs in order to work in these businesses, because we all know that universities dont really educate people properly in all things related to finances and businesses, (although they do a great job educating people in other fields)
and in order to be competitive in finance and businesses self education really matters.
Cheers
College education doesn't really help you directly for these roles. You learn a lot about what you need to do on the job. School is just to prove that you can learn things quickly.
Hey bro, do you offer coaching?
how do the salaries in long-only funds compare to the rest?
Hi Matt, I’ve been wondering who manage portfolio companies in private equity? Does the PE firm have both management team and investment team, or the investment team also sit on board in portfolio companies?
The portfolio companies are often managed by the companies themselves, with some involvement from the PE firm. The level of involvement depends on a lot of things. Some PE firms are more strategically oriented. Some companies need more help. In general though, investment team is relatively detached from day-to-day operations though IMO.
Could you do a video on recruiting from IB -> corporate finance? Since there is much less of a recruitment framework in corporate finance compared to PE/HF, it would be helpful to hear about the experiences your peers have had and some successful strategies in recruiting for the right position.
What do you mean by corporate finance? Corporate development or something else?
@@PeakFrameworks I think he means like FP&A type work
Hi Matt,
Thank you for your videos, I have watched them all and was instrumental in me getting a Summer Associate position at Evercore NY
I wanted to know the best material that would make me prepared and best for me to be well equipped in getting a return offer. Also, please do you mind providing me tips on getting a return offer. Which of your courses would be best to adequately make me shine during the summer.
Congrats on Evercore, obviously an awesome place to work. The Valuation and Finance Course is probably the best, you're going to be way better than your peers if you already know how to check models / produce high quality outputs. Aside from that, it's just being a good sport and putting in the hours. I think EVR has a high return rate.
@@PeakFrameworks Thanks Matt! I'll look into the course!
Hi Peak Frameworks,
Recently watched some of your videos which are super helpful.
My question are:
1.Which BBA should I take Computer engineering or Finance so that I can easily get hired without language barriers on IB?
2.Will it be helpful if I take BBA in computer engineering and Master in Finance in any way?
3.I want to be in IB but related to real estate , any advice on that?
4.Which divisions get you a lot of experiences related to finance? Which are the hardest and easiest divisions to work on?
Thanks
Brit
What about Family Offices? Can you please do a video on it
Hmm maybe down the road, I don't know enough about it.
Hey Matt, thanks for the video! I recently accepted a position to join a TAS team at a Big 4, previously I was in audit at another big 4 for 1.5 yrs. How long do you think I should stay in TAS before trying to make a move to IB? Also what would you say is the cutoff age for an IB Analyst? I’m currently 24, turning 25 in a few months. Thanks for the educational videos and keep up the great content!
I think you should plan for at least 1 year, but constantly be looking for opportunities. I think you still have a few more years. There were people that were 25-27 in my analyst class (just one or two though).
@@PeakFrameworks Thanks for your advice, I really appreciate it!
Hey going to the LSE (London School of Econ) for law this september and heavily interested in PE/VC/HF/Capital markets generally. How do you rate my prospects (assuming I will mostly specialize in relevant law e.g. compliance, mergers, financial i.e., transactional). I know I’m not an orthodox choice like IB/Consulting candidates from my school (or Ivies for that matter) but I have also heard transactional-focused lawyers are useful assets in funds and etc buyside operations. I would love your insight!!
Hey I can't answer your question but I had one of my own. I'm still in secondary school. What did you do (grades and extra) to get into LSE for law?
Might be hard to go straight into buyside still. I think easiest path is probably do restructuring banking and then go to a buyside role, but not 100% sure. Maybe you could do distressed PE / HF or something that requires a lot of legal work.
You should go for M&A team and then after couple deals move to buy side later on you can open your own firm and do small deals 5 - 100 million. You need to be very good in networking too
What about the private equity secondaries market
It's a newer industry. Seems like a good career track, but I don't have a ton of data. I think pays less than PE and more restricted exit opps.
Is it possible to transition into one of these buyside roles after 2-3 years of consulting?
Yes, definitely. Consultants commonly exit to PE. Less so to VC and HF, but I've still seen it.
@@PeakFrameworks Would you say consultants are at a disadvantage compared to investment bankers when recruiting for these buyside jobs, or are they at an even playing field?
systematic funds?
Don't know enough about them personally myself to make a video!
Sir can you please tell the same jobs but for Canada it will really help a lot! :)
PE is still common in Canada. There's more and more HF and VC every year too.
@@PeakFrameworks Thank you so much sir it means a lot
Sir which hedge fund can offer me 1 million salary??
Please name it sir 🤘
Most of the large cap long-short funds... Melvin, Millennium, Point 72, Citadel, Pershing Square, etc.
To be honest this is the amount of money many indians can't even make in a life time. I wish if i could have got a chance in this field.
The cost of living isn't the same as India though, a dollar goes much further there. These days, you'd be lucky to find a 100 sqft place in Manhattan below $2k.
Not true, millions of Indians are very rich, and good in businesses
Long Onlys aren't hedge funds, they're asset managers. You list Capital Group as a subset of "Long Only Hedge Fund". They're not HF they're an asset manager. Also, Long Onlys aren't "very close to mutual funds in nature", they are mutual funds. They offer mutual fund products to investors. Also, in your graph at 7:15, you say Long Onlys hold ~10-30 investments per fund which isn't true at all. Capital Group managers $2T+, there's no way they only hold 10-30 investments. They have multiple portfolios and the company holds 100s of stocks, you can peep their 13-F. Please stop spreading misinformation on the public side.
Thanks Andrew. I had this video reviewed by my HF friends, but I appreciate you commenting with more detail. I asked friends at FPR, Aravt, Eagle and Crimson, which are long only funds that are in the ~10-30 investment range. The employees also refer to themselves as hedge funds and not asset managers. There is certainly a clear difference between the Capital Group / Fidelity AMs of the world and these pure-play long only funds, but for the purpose of an overview I thought this would suffice.
@@PeakFrameworks Thanks for responding. Cap Group/Fidelity do run more hedge fund like than other LOs, and while they do have some HF like mandates for some of their funds, most of their money is run like a traditional long only. In a similar sense, you could say Cap Group has also expanded into privates to curb outflows and own a bunch of portfolio companies (they manage $5B, which is actually quite large and would fit the strict definition of a mid-market) but no one refers to them as a PE fund
Also, on the HF note, if you could clarify between single managers and multi-managers, that would be super helpful. I understand that this channel caters heavily to banking and the significant chunk of exits in banking center around privates, but there is a significant difference between SM and MM HF track. Single managers are incredibly difficult to land and have long term job security given their long term investment horizon whereas most post MBA grads would not take a multi-manager role (and even prefer a LO role) because they blow up so quick and a lot of it is trading quarters/catalysts.
Perhaps a new video idea!
That's a great suggestion Andrew, I appreciate your explanation. It's a little bit out of my scope, so I don't plan on making too much HF content, but if you're ever interested in a guest blog post to share your knowledge, let me know!