As a junior strategy consultant who’s keen to work in PE, would a CFA or CAIA be an advantage when applying for an investment role in the future?

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I honestly don’t even really notice when looking at applicants. Maybe just my perspective as a MM US based fund vp.

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As someone in the US I honestly don’t think so. I’m not saying it’s useless it will definitely help. But given the cost/benefit I personally don’t think it’s needed. Myself and all my friends in consulting with no finance background got into PE funds in the US (MM and MF) without it. Then again I don’t know what goes on behind doors in PE recruiting so it could be a big help. Just saying most people I know who got in didn’t have one so you could save ur self money and stress

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By any chance - Do you know what groups those x-Deloitte people came from?

I don’t see how a CFA would be useful in PE, it’s focused on securities analysis and portfolio management which is why it’s so common at HFs and among equity analysts. You don’t see many people in the PE community with a CFA. Given the 1,000+ hours and multiple years required to complete it, you’d probably get a better ROI using that time to network.

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You’d show more internet by showing more interest and actually talking to people!

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Yes to both, but CFA has a better reputation

Anecdotal source 1: had two PE clients straight up giving me a verbal offer, and both of their following question was "do you have a CFA"? (I do have level 2, will take level 3 later this year)

Anecdotal source 2: friends who got the CFA and work in PE/VC/HF have a better comp compared to those who don't (either that or they appear to have)

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EY1: Mostly. I'm in the private capital practice, but sometimes we have projects that aren't really a DD.

Although sometimes I do take in some FS projects (usually when I'm tired after a very demanding DD)

CFA requires more effort and is generally more respected, but CAIA is more relevant to what you want to do

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Agree^. CFA basically saves the conversation 15min of saying ‘I know what I’m doing in finance/investments’. CAIA is two step examination and for structural around Alts-so that.

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CFA is better. CFA gets you in the door for an interview and probably is a deciding factor of whether to accept or partially accept a comp offer. I have a CFA and that’s pretty much the extent of it for me as well as for people who I am hiring.

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Doesn’t help lol - why would the CFA help a PE associate ?

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In no way shape or form are either useful to PE

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You would be much better off paying for the FVMA. It’s reputation is nowhere near the CFA but it has the correct topics/modules to prepare you for PE modelling work

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I guess most junior strategy consultants are keen to work in P.E. Plus, CFA or CAIA would definitely be an advantage.

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I think so, but depends on how you end up using it

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