My Journey into Impact Investing
I was planning to start my weekly blog series from time eternal and amidst the perennial rains in Mumbai, I finally decide to start and hopefully be diligent in producing articles. I plan to write on anything and everything under the sun which interests me. So without much further ado, if you are interested to know more about how a fresh MBA grad broke into the Impact Investing space, a rapidly growing but still relatively unknown sector, read on!
In December ‘17, I had just returned from a fantastic student exchange programme from France during my fourth term at IIM Calcutta. Fresh and eager to look out for opportunities in the buy side space, I began to actively look out for off campus opportunities. It was actually during one of these searches, that I stumbled upon a Mckinsey Report which talked about the ‘Impact Investing’ industry and came to know about it for the first time (https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/impact-investing-finds-its-place-in-india)
I became quite excited about the sector and felt it to be the perfect blend of investing and consulting. Added to it was the opportunity to work with social entrepreneurs trying to bring changes in some of the most complex areas through devising innovative business models for the most deprived class (BoP) across the world. I started to dig deep and read up on the prominent firms operating in India, the recent trends and activities in this space and the kind of firms that were being funded.
Strongly motivated by the opportunities and the chance for social impact, I started to reach out to folks working in this sector to get a practical view. I knew that the chances of an Impact Investing firm to visit campus for recruitments were bleak. Another added challenge was the invisible barrier for fresh MBA grads to break into the buy side space. Finally the limited positions meant that I had to expend extra efforts in networking, financial modeling and learning the tricks and trade of the PE/VC industry. I diligently created a work plan to reach out and apply to firms active in this space as well as speak to folks (a pretty tough job at that!). Slowly but steadily I became acquainted with the practical experiences and strengthened my network. Couple of months later around February ’18 the networking effect started bearing fruits and I got interest interview calls from a few players (a balanced profile with a very good academic record, IIM C, BCG internship and having a Goldman work ex on my resume certainly helped).
It was during mid-March that I came to know of an Investment Associate opening at Acumen Fund, one of the pioneers in Impact Investing and applied. Telephonic interviews, modeling tests, and in-person interviews followed over the next three months (standard hiring timelines in the PE/VC sector are long!). The overall experience was encouraging; I was sensing a compatible fit and positive vibes from the team. Finally during the second week of June ’18, I got an email with an offer from Acumen and was ecstatic.
From my experience if I had to offer five valuable nuggets to folks interested in the buy side space:
1. Immense competition, limited positions, elongated hiring timelines; no careers section on the website will be the norm than exception at majority of the firms. Hence it is extremely crucial to personally reach out to firms you are interested in and network to know more about their work and build a relationship which makes them remember you for any future openings.
2. Needless to say, your passion for investing, financial modeling, new businesses and a strong Why PE/VC should be evident in your interviews. Don’t just aspire for a buy side role because they are considered to be one of the most prestigious jobs to work at.
3. Consider building an Investment Thesis in at least two sectors you are interested in. For the firms you are interested in, have a look at their portfolio. Be ready to answer questions on your favorite/ least favorite investments from them backed with sound logic and research.
4. Some star VC’s have their own blogs or podcast channels. Although less prominent in India, the trend is picking up. I would definitely recommend trying Accel Insights (by Anand Daniel), Play to Potential (by Avnish Bajaj) or read what thought leaders such as Vani Kolaa (Kalaari Capital), Roopa Kudva (Omidyar Network) are writing. This would help you uncover the trends and get an ‘inner circle insight’ on recent news in the industry and really add perspective in the interviews. With immense competition, the difference in quality candidates is only minimal during the final stages. This to me is what differentiates the true hustlers from the next best.
5. Lastly stay resilient and have grit. Most of the companies will not respond, few will entertain you for an interview. Although all odds will appear to be stacked against you, remember that you are looking for just one ‘yes’ amidst the countless No’s. Have faith in yourself and the preparation you have done. Even if you finally don’t bag a buy side offer, stay in touch with your network and work in a related field (Investment Banking, Strategy Consulting, Startups) till the right option comes.
The views and opinions expressed in this article are those of the author and do not necessarily reflect those of any institute or organization he is associated with.
Next up: Exploring the mysterious space of Impact Investing
