Glocap Search is a leading buy-side recruiting firm that has been finding talent for investment management firms for nearly 20 years, and has placed over 1000 professionals into front-office investment roles in the US and around the world. The presentation contains advice and information on the hiring market for PE/VC and hedge funds, tailored for MBAs (though much is be relevant for other job seekers or job switchers in the investment management industry). Sections cover the current market for buy-side hiring, job-seeking tactics, making a fit with the right buy-side employer and a guide to compensation.

1. MBA Hiring Outlook
for the Buyside
GLOCAP
Q4 2014

2. GLOCAP
Glocap Search – at a glance
Established in 1997 and headquartered in New York City, Glocap Search is a
recruiting firm focused on helping the buyside; Glocap has placed over 1000
investment professionals into investment management firms ranging from start-
ups to PE mega-funds, leading VCs and the world’s largest hedge funds; given
this, Glocap is one of the world’s largest and longest-serving buyside recruiters
 3 offices nationwide, 40+ staff
 Over 1 million candidates
 Client retention rate of >90%, with deep penetration (for example, having
placed people at 30 of the 40 largest HFs, and most of the top VCs)
 Chiefly staffed by ex-industry professionals, top college grads and MBAs
 Focus on pre- and post-MBA recruiting into investment professional
roles (and other roles like strategy positions, marketing, COO/CFO
roles)

3. GLOCAP
Some Key Points about MBA Hiring
 The MBA market for buyside recruiting remains competitive; it’s
hard to transition into the industry (for 1st years, a relevant summer
internship is key, regardless of prior experience)
 Be proactive with funds as early as possible and stay in close
contact with them throughout the year as their needs become
clearer; be patient, do homework on opportunities and network
 Recruiters can be a useful part of a job search: sign up on
glocap.com and request to receive post-MBA roles now so that
you may see opportunities that we start working on throughout the
year

4. GLOCAP
A Few Stats to Consider
LEAVING B-SCHOOL WITHOUT A JOB?
 At the top business schools, up to 25% of students don’t have job
offers by graduation; by the fall, this drops to below 10% - but many
settle (taking offers that aren’t always ideal)
WHAT TOOLS TO USE TO JOB SEARCH?
 At the top business schools, while 50% - 75% of job acceptances come
from school facilitated opportunities (campus recruiting, internships
through school, etc.) it means 25-50% came from student facilitated
opportunities (networking, recruiters, summer internships found by the
student, etc.) – it’s very important to do both!
WHAT ARE THE OPPORTUNITIES OFF-CAMPUS?
 Most funds don’t come to campus; many are not actively looking for
MBAs. In the Hedge Fund space for example, bschools rarely have
more than 30 HFs coming to campus, though the universe of registered
HFs is now over 10,000

5. GLOCAP
Agenda
 State of the PE/VC/Hedge Fund Industry
 The Job Market and the Competition
 Getting a Job on the Buyside
 Compensation

6. GLOCAP
State of the Industry

7. GLOCAP
U.S. PE Deal Flow by Quarter
Source: PitchBook, as of 6/30/14
Deal-making has held fairly steady over the last few quarters$51
$28
$34
$55
$76
$86
$78
$135
$96
$86
$95
$120
$89
$91
$93
$178
$83
$101
$120
$151
$108
409
366 365
443
535
493 504
700
612 595 578
632
610
563 557
814
547 552
678
633
589
0
100
200
300
400
500
600
700
800
900
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2009 2010 2011 2012 2013 2014
Capital Invested ($B) # of Deals Closed

8. GLOCAP
U.S. VC Deal Flow by Quarter
Capital invested hit a post dot-com boom record in 2Q 2014
$6.5
$7.8
$6.6
$6.7
$10.6
$9.8
$10.2
$9.1
$9.1
$10.3
$8.7
$8.4
$8.8
$9.3
$9.1
$9.8
$12.5
$16.4
954
1,003
938
993
1,277
1,2021,229
1,175
1,4841,469
1,355
1,301
1,437
1,383
1,294
1,1621,155
1,117
0
200
400
600
800
1,000
1,200
1,400
1,600
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2010 2011 2012 2013 2014
Capital Invested ($B) # of Deals Closed
Source: PitchBook

9. GLOCAP
Hedge Fund Industry Assets
Industry Assets remain at record
levels, now estimated at $2.8T

10. GLOCAP
Post-2009, the numbers of
HFs have continued to
slowly grow
Estimated #s of Hedge Funds

11. GLOCAP
Most of the funds are sub $100m; the largest,
$5Bn+ funds control 2/3rd of the AUM
Hedge Funds #s and Sizes

12. GLOCAP
The Job Market &
The Competition

13. GLOCAP
There is a lot of competition amongst
candidates from other top MBA Programs
# MBAs in ‘15 class with Full Time PE/VC Investing Experience
2015 2014 2013 2012 2011 2010 2009 2008
Harvard 113 123 118 133 125 105 104 98
Wharton 92 83 98 84 79 77 49 42
Stanford 69 60 64 56 52 50 47 51
Booth 28 29 21 24 23 19 11 10
TOTAL 302 295 301 297 279 251 211 201

14. GLOCAP
Recruiting Perspective on PE
 Only a subset of MBAs with prior PE experience return to the buyside. As a result,
more candidates are going the operating, consulting or entrepreneurial routes.
 Two schools reported ~55% of 2013 MBAs returned to the buyside after graduation
 In 2012, 65% of MBAs returned to the buyside
 These numbers are down from 85+% who returned to the buyside prior to the downturn in 2008/9.
 For MBAs with previous PE experience
 PE internship opportunities seem to be decreasing over the past few years, although there are
still funds using them as an extended interview process
 MBAs are increasingly looking to diversify their experiences over the summer with internships in
operations/consulting rather than more PE investing opportunities
 For MBAs without previous PE experience
 For those who broke into the industry after graduation, specifically those with two to four yrs of
investment banking/consulting experience plus a summer PE internship fared best
 There aren’t many of them, but a small number of these summer internships do turn into full time
offers

15. GLOCAP
 While still highly valued, having an MBA is not as much of a pre-requisite for
obtaining or staying in VC long-term, unlike the PE job market
 Venture capital firms are increasingly looking at people with more varied
backgrounds
 People accepting post-MBA VC jobs are those who have typically two
years of banking or consulting followed by a few years of VC, start-up or
operating experience within a technology firm (for example, Dropbox,
Google, Facebook or Microsoft)
 VC firms are looking for candidates with strong networks and a
willingness to source
 Firms are looking for more specific tech knowledge and vertical expertise
 Those recruiting for post-MBA VC jobs are often recruiting against laterals
(people with four to five years of post-MBA experience without an MBA) as well
as people who have one to two years post-MBA
Recruiting Perspective on VC

16. GLOCAP
Recruiting Perspective on Hedge Funds
Tailwinds:
 The majority of hiring at hedge funds is at the junior and mid-levels
(i.e. 2-8 years of experience, where most MBAs are)
 These hires are relatively cheap, come in trained and do the majority of the heavy
lifting
 Junior bench is typically the first to see rebound in demand
 Hedge funds are showing a growing interest in MBA talent
 Larger, more established platforms increasingly on campus
 Broader MBA skills and perspectives are being valued, in addition to
investment/trading skills, as are fundamental PE skills
 Big picture perspectives, risk considerations, extensive research experience
 2014 showed instances of successfully negotiated comp packages
by MBA graduates
 Including guarantees and sign-ons
 Some 2015 MBAs have already received offers from their summer
internships at hedge funds

17. GLOCAP
 An MBA still does not provide a SIGNIFICANT competitive
advantage to hedge fund candidates
 Despite increasing interest from select hedge funds for MBA talent, the vast
majority still do not place a premium on the degree
 There are instances in which MBA candidates are selected against (attitude,
financial expectations, time out of the market)
 The competition is as fierce as ever. You are up against:
 Lateral hedge fund candidates
 PE / VC candidates who want to move to the public markets
 CFA / Master’s candidates
 Majority of candidates who transition to a hedge fund from b-school
have previous buy-side experience (HF, PE, long-only)
 Few candidates with only investment banking, consulting, industry or “other”
backgrounds successfully make the transition (summer internship is key)
 Bottom line: you have to REALLY want it
Recruiting Perspective on Hedge Funds
Headwinds:

18. GLOCAP
Getting a Job on the Buyside

19. GLOCAP
Tips on Career Transitioning
In our experience, you can typically only change one element of your career
path at a time. For example, thinking about GEOGRAPHY, INDUSTRY and
STRATEGY/SECTOR…
STARTING
EXPERIENCE
TRANSITION TRANSITION
US, HF, Credit London, HF, Credit US, HF, Cross-Asset
US, PE, Industrials US, PE, Energy/Power US, HF, Industrials
Japan, PE, Tech US, HF, L/S Equity
generalist
OR
OR
Reasonable
Reasonable
Challenging

20. GLOCAP
General Tips on Getting a Buyside Job
 CLARIFY GOALS AND IDENTIFY TARGETS
 Know what you want, and be efficient with your time
 Identify industry focus/expertise, investment stage and size of fund
 Research funds that have hired MBAs in the past and know what they look for
 DO YOUR HOMEWORK
 Know what your strengths are; identify and convey your edge to show
differentiation
 Know your deals, speak to your roles
 Prepare investment ideas
 DEMONSTRATE YOUR PASSION
 Offer to do project work/ consult (perhaps for free if you can do that)
 Don’t rely on your resume for them to be impressed; it’s a door-opener at best
 The best positioning is you’re not ‘looking for a job’; you’re looking to invest on their
platform and add to their team which will improve that firm’s performance

21. GLOCAP
Then…NETWORK
Undergrad
Bschool
Alumni
Former
Employer
Recruiters
People like to help their own . . . the worst they
can do is say no
Fraternity /
Sorority
Industry
events

22. GLOCAP
International Perspective
 RETURNING NATIONALS ARE OFTEN IN DEMAND
 You have the language, the cultural understanding and the network, plus the US
experience
 IF YOU WANT TO STAY IN THE US
 How does your background differentiate you? E.g. you’re from Asia and want to
stay in the US and focus on Consumer sector investments, you can make the case
you’re well-placed to understand the drivers of global consumer demand given your
background
 If you have family/ties to the US, play them up – firms want to see a commitment
that you’re here for the long-term
 NEW H1B VISAS ARE IN SHORT SUPPLY
 But use OPT time
 H1B transfers are pretty straightforward (be ready to educate firms not familiar with
the process, and offer to pay and handle the paperwork)
 If you’re a US citizen or Green card holder but this wouldn’t be obvious from your
background, then highlight this in your resume! Firms aren’t allowed to ask about
this, and generally look to hire the best regardless of citizenship status, but it can
only help you

23. GLOCAP
Hedge Fund and Venture Capital hiring occurs less
systematically and more often occurs in Q1/Q2 of your
second year
For Hedge Funds, many people graduate without a job and
pick up a strong position over the summer, in the fall
The PE MBA Recruiting Cycle
1st Semester
Aug – early Oct:
Mega/Large PE
Funds
Oct – Dec:
Large and middle
market funds
2nd Semester
Middle market
and smaller
funds
Post Grad
Just in time
hiring needs
Most larger funds
with predictable
annual hiring needs
and a focus on
pedigree come to
market first – but
there are more
exceptions to that
rule each year
Large/ Upper Middle
Market funds with
unfilled spots and
mid-size funds
whose hiring needs
have become
apparent by later in
the 1st semester
Mid-size and smaller
funds that may not have
known needs prior to the
new year and that are not
as anxious about specific
candidate characteristics
Typically smaller
funds with unforeseen
hiring needs, although
there have been
notable exceptions in
recent years
Start of hiringEnd of hiring

24. GLOCAP
Compensation

25. GLOCAP
Compensation Data – PE/VC
 Overall compensation has remained flat since the 2008/2009 downturn
 Generally speaking, fund size drives buyside fund compensation for post-MBA
graduates
 PE
PE compensation for recent MBA graduates
 Many but not all PE funds offer MBAs carry within the first year of employment
 VC
 More variance in the total compensation figures in VC
 Typically pay at a discount to traditional PE funds (sometimes as much as
30%+ lower
 Usually structure comp for a higher base and lower target bonus
 PE firms are more likely to give a sign on bonus than VC firms but it does vary
 Many Investment Banks have announced they will increase Analyst comp (i.e. GS
plans to increase base by 20%), we expect this to cause firms to revaluate
compensation in the near term
GLOCAP
<$300M $300 - $750M $750M to $2B $2B to $5B Megafund
Base $100K - $125K $110K - $135K $135K - $165K $140K - $175K
$150K -
$200K+
Bonus 75% - 125% 90% - 150% 100% - 150% 100% - 150% 125% - 200%+
Total $200 - $275k $225 - $300k $275 - $375k $315 - $425k $400 - $525k+

26. GLOCAP
Compensation Data – Hedge Funds
 For the MBA class of 2014, base packages were typically in the
$125k-$175k range and all-in compensation expectation $240k-
$450k
 Several instances of successfully negotiated packages to include
a sign-on (often $25-30k)
 BUT typically few instances of bonus guarantees, more typically
‘bonus guidance’
GLOCAP
Small <$500M Mid $500M - $4Bln Large $4Bln+
Base $125K - $175K $150K - $225K $150K - $275K
Bonus $125K - $400K $250K - $850K $340K - $1.4M
Total $250K - $575k $400K - $1.1M $490K - $1.7M
*Compensation data for a “Level II” professional or ‘Idea Generator’ at mid-performing funds, based on 2014
comp data
2014 Compensation data for “Idea Generators”*
On average,
5-10% up on
2013 for top
performers

27. GLOCAP
The Key Points in Conclusion
 The MBA market for buyside recruiting remains competitive; it’s
hard to transition into the industry (for 1st years, a relevant summer
internship is vital)
 Be proactive with funds as early as possible and stay in close
contact with them throughout the year as their needs become
clearer; be patient, do homework on opportunities and network
 Recruiters can be a useful part of a job search: sign up on
glocap.com and request to receive post-MBA roles now so that
you may see opportunities that we start working on throughout the
year

28. GLOCAP
MBA Recruiting Contacts
HEDGE FUNDS
Anthony Keizner (NY), anthony@glocap.com
Kristin Sartorius (MBA coordinator), sartorius@glocap.com
PE/VC
Diane Tseng (SF), tseng@glocap.com
Sarah Moffet (SF), moffet@glocap.com
Pamela Lang (NY), lang@glocap.com
Kelley Finlayson (NY), finlayson@glocap.com
212.333.6400
JOB SEEKERS – CREATE A CONFIDENTIAL
PROFILE AT www.glocap.com
AND SIGN UP TO RECEIVE NEW BUYSIDE JOB
POSTINGS