Read on Twitter
This is a good, thoughtful thread and I respect the viewpoint/appreciate that launching on your own is very much not for everyone. But, I figured I could add another (slightly rambling) perspective: https://twitter.com/ShortSightedCap/status/1334151801415856130?s=20
1/ Getting to do things your own way is something I value immensely. Not just “working for yourself” in the cheesy sense (though I appreciate it), but (more importantly) being able to invest *exactly* according to your own style/philosophy/personality.
2/ Observation that industry is shrinking/jobs harder to find and therefore gotta hang on...Respectfully, this sounds like a choice between playing musical chairs and…starting your own game (perhaps also a bad idea! But, it’s not obviously worse to me).
3/ Are you a notably better Analyst or PM? If latter, the career slog to actually getting there seems…problematic – especially given comment about shrinking industry. Maybe I’m wrong, but that’s my impression.
4/The notion that one needs $100s of MM of AUM to be viable is one of biggest misconceptions out there, IMO. Still think this was the worst advice I received when I began exploring the idea…
… It is definitely applicable/true for some people – but not everyone. My goal isn’t to manage a team (though maybe a team is needed for some). All depends on what you’re looking to do and what success looks like to you.
5/ Related: while ops stuff can be distracting, fewer employees = simpler ops. It’ll never be nothing, but it can definitely be manageable.
6/ Comments about marketing/pressure to perform all timeframes are obv spot on. IMO, a solution is accepting/embracing the much-maligned ‘wander the desert’ path. Yes, it sucks, takes forever, is painful, etc…
…But, *if* (and it's a big If) you can get the runway to survive…you end up with the right investors and a literal dream job (who ever said obtaining that should be easy/comfy?).
7/ Lastly, I can’t emphasize enough that there is no one-size-fits-all approach to advice on stuff like this – everyone’s personality + circumstances + hopes/dreams are different. Get lots of perspectives if you’re considering taking the leap.
** Some footnotes:
(1) generally consider myself an outsider to the investment industry – lacking significant large/institutional experience, but also…the baggage from a long career in the space. Take it FWIW.
(1) generally consider myself an outsider to the investment industry – lacking significant large/institutional experience, but also…the baggage from a long career in the space. Take it FWIW.
(2) Of course, getting the runway to ‘wander the desert’ + build a track record/investor base isn’t just snapping your fingers and requires some combo of luck, low costs, savings, a supportive spouse…etc.
End/ That’s about all I’ve got for now – will add to this if other things pop up.
