AM vs PE

huwabara

Hi everyone,

So... Asset Management or Private Equity. Who wins? I'm not looking for an all category winner here, just your feedback about the pros and cons of each, based on your understanding and experience. The different aspects of interest to me are : intellectually challenging, financially rewarding, leisure time you can still afford, ...

Right now, i'm in neither industry, so it will require a move anyway. Still, the point remains: the asset management seems more suitable for a CFA profile while lacking the hype and glory of PE.

Am I crazy? I sound crazy.

sankrutimehta

I would go for PE...for the sheer novelty of it
Now thats what u call crazy...and jokes apart; My view is that it is more intellectually challenging. Leisure time and financial rewards would be a bit of a compromise..but I would still go for it for the mere intellectual part. Would sort of give me less time to think of the rest and keep me on toes which is what I am looking for!!

huwabara

Could you please expand on why you think it is more intellectually challenging, especially for a junior position? It is not that clear for me.

Still, I completely agree on "less time to think of the rest" part . Who cares about socializing when you've got networking

hairyfairy

There is no 'better' job here, just one that suits you better.

hairyfairy

AM is a lot more research-based and theoretical, whereas PE (depending on industry) requires a good understanding of the particular industry and business - the CEO type skill set.

At junior positions there will be much less differentiation though - analysis, analysis, analysis. On average you may find that PE will require many ad hoc analyses as you switch between industries and phases of your portfolio businesses whereas in AM it's steadier, ie your acquired knowledge tends to be used again and built upon.

Sophie

I'd saw you're less "market focused" in a way for PE. You don't look at Bloomberg screens nor care about how various market indicators are doing or implying and how that affects your portfolio. For PE you specialise at a particular sector, do a lot of due diligence on the company you're interested in acquiring/investing, quite some financial modelling etc. You don't go into that much detail for each asset you'd invest in AM.

huwabara

Thank you @hairyfairy for your feedback.
I agree with you. At the end, one wants to find the job that suits her/him the most. Nevertheless, you never know what you ll spend your day doing before making the jump. That's why I m trying to get info as to what are the minutes of each job.

huwabara

Thanks @Sophie. I'd say Traders > AM > PE regarding the frequency of BB updates.

What about the geographical epicenters of the industries? I presently live in Paris, a two tier city in both industries. My grand plan includes making a move. Switzerland, London or NY, depending on the opportunities.