So I’m currently working in audit and it seems like its really hard to make a direct transitioning into an investment decision related position/or i-banking role for that part. Now, I might have a chance of getting a operational due diligence role for a fund of funds team (a friend of mine works for the team). I have been doing some research and the work itself doesnt sound very attractive… However, could this position be a good bridge from audit -> portfolio management/hedge fund role? Any guidance would be appreciated. Thanks
^ agree that this more or less would be your job. prospectus agreements, financials, and quarterly or so on site visits so a fair bit of travel. decent enough job, should pay fine and not be super boring in this regulatory environment, but transition to PM/buy side? umm, not really except that you’d be talking to CFO/COO types here and there at the funds and would have to work some magic.
that all said, i know a girl who left doing legal/audit hedge fund work to do ODD for cambridge associates (not sure where you’re looking), and she enjoys the new role a lot. after madoff, you’d have to figure it’s a pretty safe/insulated job these days. due dilligence isn’t going away any time soon. that and risk guys. risk is huge now for more math nerdy types looking for gigs at sell side or buy side shops. no clue what this ODD role pays- but I’d have to think 6 digits easy for not a jr type person. have no idea what you make or where you are in your career, but pay shouldn’t be awful i would imagine if it’s a decent sized shop.
Agree with Banni. I work for hedge fund and we do not have an ODD person at this time. we are using third party for this role, so far so good but I do a check on what the third party does and its not that boring at all. going forward (also today)ODD will play a huge part in this industry. you will work directly with investment team in most if not all investment decisions.
If max $ is your life goal then I would personally stick with audit. Audit Director prob makes what 150k? Hedge Fund ODD makes 80-100k? Audit at big4 has more upside protential and defined career path. Sure hours are long but sooner or later you will break 200k while 10 years in ODD your just hoping to jump a bigger fund of fund.
So in other words, an ODD position is not as horrible as it sounds. However, it would not help me facilitate a transfer to PM or more investment related position within a fund of funds team for example. Is that an accurate understanding? Naturally, cash is a major goal. Although at this point I really want to do something I like… That’s more important. I’m at a big 4 firm, doing audit at one of the major US investment banks but as I just completed all of the 3 CFA level, I’m hoping to move into a more PM or PE related position. But such transition seems to very tough in this environment and with my background. Therefore I’m looking for a possible “bridge position” that would provide a solid basis for such a move in the future. Thanks
sorry, but could you fill me in… ODD?
Operational due diligence…
I’m in audit too (starting 3rd year at big 4), my plan is to do something different within big 4 (i. e. derivative valuation, transaction valuation etc.) and then back to school for MBA. Might have to go straight to full time MBA out of audit depending how thing continue to go. MBA seems to be the key for career change. I would not quit big 4 to do operations or even accounting at a fund or bank, maybe if pay is like 200k, but those times are over for now. If you leave big 4, your career growth stops pretty much until you go back to big 4 or back to school or of course have connections.
MBA is definitely key for career change, I noted that as well. I have considered that option as well, and even requested it. However, they are not letting me transfer as I’m handling some key audit areas at my current client. Maybe next year… I’m not really considering an “operations” position Per se. This would be a due diligence position for a hedge fund. However, I would focus on the operational side. My hopes are though that such position would help me to move into a fund of funds role. My dream would be a Private Equity funds role though. But this seems REALLY hard to get into without a MBA from top school and/or i-banking experience from a top institution… Thanks
try PE fund of fund. I’m sure with a cpa, top 20 mba and decent big 4 work exp you can land a role. Pay and work isn’t as exciting as the traditional PE work but to be honest not everybody can be the next Steve Schwarsman.
maaagian, I’m not sure what exposure your firm has to PE funds, but I know ours does lot of work for large PE funds, I’d guess all big 4 do. Things are not that exciting as when you work for PE firm itself, but it’s great way to develop networking contacts, explore opportunities, and have better understading what jobs you would really be able to get. The tought part is PE hype is gone as financing dried up, and there is not much work to be done for PE firms so positions might not exist even whithin your firm. On a side note, from what I heard many go into front office type job from non-audit parts of big 4. It’s also pretty easy to get into top MBA after 5 year or so at big 4, CPA, CFA is only plus.
Yes, we have a big funds team. But I mean, auditing funds are pretty retarded. Monthly reconciliations… For most part you dont even interact with the client. We dont exactly put our smartest poeple on the funds team… The better option would be to join the Transaction Services group that specializes in PE. However, there are have been and continue to be huge lay offs in these groups for all big 4 firms so… A transfer is not really an option (risk of lay off + they don’t accept any new transfers). So I’m pretty much stuck at position in my firm, so I have to venture out. Otherwise you’re correct. TS gets you in a good spot for other jobs + its a good background for MBA. Thanks
Yea I was talking about TS for funds, not audit. Looks like you know what’s going on, so can’t give your any more advice. What big 4 are you at and what year?
Sorry, I’m paranoid, big 4… Up for manager next year. BiPolarBoyBoston: Thanks, although I dont have a MBA right now. Any other guidance folks?