[trc12]

I graduated in 2010 and am coming up on my second year of being a private equity staff accountant at a custodian. From what I am told this isn’t the same as being a fund accountant at State Street where it is essentially data entry. I am given two funds, and the work is almost entirely done in excel. The work itself isn’t entirely back office as I am in constant comunication with the client and other players in the fund.

Here is an exerpt from my resume:

-Manage accounting workbook for direct funds and fund of funds

-Record journal entries in general ledger, and prepare quarterly trial balance

-Maintain quarterly workbook reports for: investments, distributions, expenses, unrealized gain/loss, and partners’ capital

-Maintain effective communication between the general partner, the limited partners, and the fund’s underlying investments

-Analyze capital call and distribution letters

-Prepare: statement of assets, liabilities, and partners’ capital, statement of operations, schedule of investments, statement of partner’s capital, and statement of cash flows

-Assist independent auditors in year-end audit.

Additionally I have passed the CPA exam while working this job, and obtained the necessary 150 units to fufill the educational requirement.

The main purpose of this post is to ask if anyone has some career advice for me. I am more than ready to leave my current company. I feel like there isn’t a lot of precedence for the career path of a Private Equity Accountant. So far I have thought of switching to public accounting and becoming an accountant at PE firm as options.

[Mayo]

Both options sound valid. I know plenty of people going to PE from public accounting. Fund accounting experience is in demand on and off around my area.

Mayo, BBA, Macc

[Mayo]

Both options sound valid. I know plenty of people going to PE from public accounting. Fund accounting experience is in demand on and off around my area.

Mayo, BBA, Macc

[jeff]

Mayo – I always appreciate your responses re: accounting careers. Very helpful.

[jeff]

Mayo – I always appreciate your responses re: accounting careers. Very helpful.

[onmywhey]

I know people who work in fund accounting, although on the tax side. It can be a lucrative career but you need certain credentials and certain connections.

Private equity accounting has A LOT of precedence, not sure where you get this idea from that it does not. As you may know, the accounting for private equity falls under partnerships, which is then grouped with hedge funds and classified under asset management. Many Big 4 in large cities have large departments that work in asset management, turnover is high which would indicate that job opportunities are plentiful in large cities.

Not sure where you are from, but I have seen many pursue careers in asset management and in particular, fund accounting.

[onmywhey]

I know people who work in fund accounting, although on the tax side. It can be a lucrative career but you need certain credentials and certain connections.

Private equity accounting has A LOT of precedence, not sure where you get this idea from that it does not. As you may know, the accounting for private equity falls under partnerships, which is then grouped with hedge funds and classified under asset management. Many Big 4 in large cities have large departments that work in asset management, turnover is high which would indicate that job opportunities are plentiful in large cities.

Not sure where you are from, but I have seen many pursue careers in asset management and in particular, fund accounting.

[trc12]

Thank you all for your advice I really appreciate it. In terms of the negative stigma regarding fund accounting I guess I am afraid that what I do gets lumped into the same category as people who do fund accounting at State Street for example. I work in Boston FYI.

[trc12]

Thank you all for your advice I really appreciate it. In terms of the negative stigma regarding fund accounting I guess I am afraid that what I do gets lumped into the same category as people who do fund accounting at State Street for example. I work in Boston FYI.

[Anonymous]

trc12, I currently work for a private equity firm, although I have been in and out of financial institutions with fund complexes for the past 17 years. In my opinion the fund accounting role will give you greater mobility (both within an organization and if you want to switch firms) than a private equity accounting role for a number of reasons: there simply are more fund complexes than there are PE firms; fund accounting is something people “understand” and can wrap their heads around so even if you wanted to move to a non-fund accounting role I think the transition would be easier than out of a PE role; and even though the entire financial industry is of course cyclical with the economy, there will always be fund complexes, and therefore a need for fund accountants. PE is much more subject to the whims and whiles of the what's in vogue with investors. I currently work for a firm that's fundraising and we are over-subscribed. Another very large shop in town just closed its dooors. This piece of the industry is much more volitile than funds.

Obviously I'm not trying to discourage you from going into PE (I work in that sector myself!), but just trying to give a little prespective after over a decade and a half up and down Wall Street.

[Anonymous]

trc12, I currently work for a private equity firm, although I have been in and out of financial institutions with fund complexes for the past 17 years. In my opinion the fund accounting role will give you greater mobility (both within an organization and if you want to switch firms) than a private equity accounting role for a number of reasons: there simply are more fund complexes than there are PE firms; fund accounting is something people “understand” and can wrap their heads around so even if you wanted to move to a non-fund accounting role I think the transition would be easier than out of a PE role; and even though the entire financial industry is of course cyclical with the economy, there will always be fund complexes, and therefore a need for fund accountants. PE is much more subject to the whims and whiles of the what's in vogue with investors. I currently work for a firm that's fundraising and we are over-subscribed. Another very large shop in town just closed its dooors. This piece of the industry is much more volitile than funds.

Obviously I'm not trying to discourage you from going into PE (I work in that sector myself!), but just trying to give a little prespective after over a decade and a half up and down Wall Street.

[onmywhey]

Perhaps I am ignorant but fund accounting is different than private equity accounting? I thought they were the same thing…

I have interaction with the numerous accounting firms, custodians, and in house accounting departments of private equity shops and correct me if I am wrong, but they generally pull from the same talent pool with respect to accounting…

[onmywhey]

Perhaps I am ignorant but fund accounting is different than private equity accounting? I thought they were the same thing…

I have interaction with the numerous accounting firms, custodians, and in house accounting departments of private equity shops and correct me if I am wrong, but they generally pull from the same talent pool with respect to accounting…

[Anonymous]

Let me be more clear about when I meant in reference to private equity accounting. In my firm, we actually buy and sell companies. The Actual Companies. These companies are generally private while under our umbrella so the valuation assigned to them is determined by our process. Said another way, on a quarterly basis we are determining what these companies are worth, not just compiling and reporting on someone else's information. In fund accounting the investments are typically public companies and the accounting has to do with gathering available information and compiling it into the pool of total assets being reported on.

Sorry if I didn't describe this well before.

Edit: It also occurred to me that sometimes people use the phrase “private equity” when what they really mean is unregistered funds (as opposed to mutual funds, which are registered investment companies). If indeed what the OP means is private equity in the context of unregistered funds, so more like hedge fund accounting, then my description of private equity accounting is not the same thing.

[Anonymous]

Let me be more clear about when I meant in reference to private equity accounting. In my firm, we actually buy and sell companies. The Actual Companies. These companies are generally private while under our umbrella so the valuation assigned to them is determined by our process. Said another way, on a quarterly basis we are determining what these companies are worth, not just compiling and reporting on someone else's information. In fund accounting the investments are typically public companies and the accounting has to do with gathering available information and compiling it into the pool of total assets being reported on.

Sorry if I didn't describe this well before.

Edit: It also occurred to me that sometimes people use the phrase “private equity” when what they really mean is unregistered funds (as opposed to mutual funds, which are registered investment companies). If indeed what the OP means is private equity in the context of unregistered funds, so more like hedge fund accounting, then my description of private equity accounting is not the same thing.

[onmywhey]

Okay, thanks for the clarification. Seems like you got a nice gig going on for you!

It makes sense that you refer to private equity as well… equity that is private. When I hear private equity I think private equity fund like LBO and fund of funds.

Based upon what the OP describes, seems like fund accounting as I know it, but not exactly sure. The fact that I grouped him with traditional “fund accounting” may not bode well for what OP is looking for.

[Author]

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