Despite its (CAIA) concentration on private equity, I would think this probably would not help anyone get into PE at all given that the consensus seems to be that even the CFA is of negligible value in this industry. Thoughts? It does seem like it covers interesting material though. I thought I’d post here instead of the CAIA forum to get a broader audience.
I think this CFA bashing of it being of negligible value is a load of crap. Many jobs have CFA requirements or rpeferred. So enough of the bashing, I mean why is everyone on this board here doing it or done it anyway? Because it has a decent value CAIA on the other hand, probably has little as its just not well known enough
to say that CAIA is of “negligible value” to private equity would be overstating its importance
lol… guys, these investments in CFA/CAIA/MBA etc are going to stay with you throughout your lives. Their value is in the knowledge base you acquire and confidence that you exude after completing them. Come on… think of the value of CAIA after 5/10/15 years. In some interview, some discussion, some conference, somewhere it will be valuable. As for getting into PE, depends on which PE firm you are talking/what other credentials you have/state of the economy/your connections etc! Its all about the package.
I have a high regard for the CFA and when I say of negligible value, I meant in Private Equity. It seems to be a nice touch in Investment Banking / M&A but a lot of folks don’t have it there from what I am seeing. I cannot see the CAIA being useful to get in PE. I will take Numi’s (PE expert) word on this.
numi Wrote: ------------------------------------------------------- > to say that CAIA is of “negligible value” to > private equity would be overstating its importance Is there a correlation between this view and you not having done this exam or CFA? I do not intend to take the exam either, but to dismiss it based on our own insecurities is paranoid.
I have completed both programs. The CAIA is not geared to have you act as a general partner, ie sourcing and fundamentally analyzing businesses to purchase and manage. It does however prepare you to be a limited partner, essentially giving you the tools to conduct due diligence on the manager and understand the basics of what is involved in undergoing various private equity transactions. THE CAIA TEACHES YOU TO KNOW HOW TO EVALUATE OTHER MANAGERS AND INVESTMENT STRATEGIES, NOT HOW TO RUN THOSE STRATEGIES YOURSELF. So it may help you get into PE, on the marketing and sales side of the firm. Because you will know how to spin the strategy to potential due diligence analyst.
JOE2010 Wrote: ------------------------------------------------------- > numi Wrote: > -------------------------------------------------- > ----- > > to say that CAIA is of “negligible value” to > > private equity would be overstating its > importance > > > Is there a correlation between this view and you > not having done this exam or CFA? no correlation. just telling it how it is > I do not intend to take the exam either, but to > dismiss it based on our own insecurities is > paranoid. if i were insecure about the CAIA, i would have gone ahead and taken it. but, no, it’s just that it’s not relevant to my career pursuits so therefore i did not pursue it and do not recommend it to others that have similar aspirations.
Rydex, in that case it sounds like something that may be more useful to PE FoF’s or secondary PE perhaps…or, as you said, deal origination and pitching PE funds, but less with transaction analysis
numi Wrote: ------------------------------------------------------- > JOE2010 Wrote: > -------------------------------------------------- > ----- > > numi Wrote: > > > -------------------------------------------------- > > > ----- > > > to say that CAIA is of “negligible value” to > > > private equity would be overstating its > > importance > > > > > > Is there a correlation between this view and > you > > not having done this exam or CFA? > > no correlation. just telling it how it is > > > I do not intend to take the exam either, but to > > dismiss it based on our own insecurities is > > paranoid. > > if i were insecure about the CAIA, i would have > gone ahead and taken it. but, no, it’s just that > it’s not relevant to my career pursuits so > therefore i did not pursue it and do not recommend > it to others that have similar aspirations. You may wish to tone down and let these kids pursue their dreams - PE<> numi(Reading the post above, you seem to erroneously make that assumption, and you can not be more wrong, but probably condescending). Have been around for some time to know that some guys have to really fight for their share of the world through whatever qualification it takes and dismissing such efforts is arrogant. >Rydex, in that case it sounds like something that may be more useful to PE FoF’s or secondary PE perhaps…or, as you said, deal origination and pitching PE funds, but less with transaction analysis How about you taking the exam, then tell us how irrelevant it is? I hate to pick up a fight with you but I will dismiss this arrogance to the bitter end. A pre-MBA associate can not claim to be the last word on a field (If it helps you I had a classmate in my MBA class who worked in a PE firm and found the CAIA useful).
I think he’s just making a general observation based on his own direct experience with PE. Of course there will be opinions going both ways depending on the particular firm / individual. I had an inquiry and thought he gave his honest answer which I appreciate along with contrary opinions. This is still something (CAIA) may pursue for different reasons.
CFAMetal Wrote: ------------------------------------------------------- > I think he’s just making a general observation > based on his own direct experience with PE. Of > course there will be opinions going both ways > depending on the particular firm / individual. I > had an inquiry and thought he gave his honest > answer which I appreciate along with contrary > opinions. This is still something (CAIA) may > pursue for different reasons. A general observation is not the same thing as dismissing something based on your subjective experience - I know the difference.
I never claimed to be the last word on a field. However, since you’re entitled to your opinion as well, then you can feel free to debate whatever it is you think I’m saying to “the bitter end.” My opinion is formed based on my experiences, nothing more and nothing less. It doesn’t have anything to do with arrogance or whatever. I could take the CAIA exam…but…I don’t want to or need to. Neither do most people in PE. So you have a friend that learned something from the exam - great - I’m sure I’d learn something too. However, the original poster was asking if the exam was worth it, and I say it’s not because there’s always an opportunity cost. I guess if you had infinite time, then sure, go ahead and take all the exams as you please. I don’t think the original poster was asking whether or not he’d learn something from the test; he asked specifically whether it was worthwhile. I don’t think there’s anything ambiguous about that. Anyway, I don’t know how to make this more clear, but that’s my opinion. It wasn’t meant to be arrogant and I’m sure the original poster didn’t take it that way, but if you think so, then you’re entitled to your opinion too
JOE2010 – The other thing I should add is that if you’ve followed my other posts on CFAmetal’s other threads, you would have seen that I’ve recommended more practical means of learning about the PE industry, deals, and so forth. So, I apologize if you feel I was summarily dismissing the value of the CAIA – but then again, I really don’t think it’s the most constructive use of time. There are more practical means of learning about PE like subscribing to free PE journals, learning LBO modeling, getting into banking, research or big 4 accounting…and if you’re going to spend your time on anything, it’s much better to spend your time doing any of these other things. That is what the author is looking for. Anyway, all the best