Kevin Wong
Senior Investment Analyst, Private Markets
University of Alberta's Endowment
Kevin Wong: I really enjoy the challenge associated with private market investing. It is a dynamic space that requires both knowledge of market trends and a keen understanding of underlying return drivers in order to succeed. Unlike public markets, opportunities in the private markets are ever changing and provide constant exposure to new businesses and strategies. As a curious person, I get excited by the sheer number of new funds and co-investments available to evaluate. I often tell people that the best part of my job is that no two days are the same. From one month to the next I can go from one asset class and geography to another entirely. The scope of our mandate ensures that there is always a new challenge on the horizon.
To prepare for new opportunities I like to start by critically analyzing and understanding what is required to succeed. Once I have established the criteria for success, I look inwards and evaluate where the gaps in my current skills or knowledge are and make note of it. Next, I look to address these deficiencies through additional learning and resources. Finally, I continue to repeat this process until I am comfortable that all of the criteria have been addressed. It is a framework that can be applied to many aspects of life and has served me well over the years. I believe that incorporating ongoing feedback is essential because it allow for opportunities to reflect and improve.
Kevin Wong:One of the most important lessons that I have learned over the years is the power of the phrase “Don’t ask, don’t get”. It is an incredibly simple change in mindset but one that can lead to a dramatic change in outcomes for your professional life. Simply put, there is no cost associated with asking another person or party if there is room for negotiation. The worst answer you can receive is a “no” which will result in a re-evaluation of the situation. However, it is more often the case that the act of asking leads to a deeper conversation about each party’s needs and can even result in concessions.
Developing these skills takes time but is worth it as the underlying skills are highly transferable. Whether it be leveraging consultant relationships to drive lower management fees, or pushing hard for an LPAC observer seats, there are multitude of ways for investors to negotiate for to their advantage. to add value on top of traditional fund selection. This thinking can also be applied to other aspects of professional life which include delegating work with other teams as well as salary negotiation. Do not underestimate the value and importance of soft skills. There is more to finance than the quantitative side and being able to communicate effectively is just as important as having mastery over your spread sheets.
For those who are looking for a place to start, I would recommend working on your active listening skills first. In any negotiation it is necessary to understand what is and is not important to the other party. Once you know what motivates them you can begin discussing alternatives to the terms that are presented to you. If you want to take it one step further there is the option to bringing additional considerations to the table. However, be careful with this last one as you need to be able to actually deliver on any additional items that you are bringing to the table.
Kevin Wong: It is a bit cliché but I would advise getting as much exposure to the pension industry as possible. There will always a difference between your idealized version of a role and the realities actually associated with it. Figuring this out ahead of time can help save you time and give you a head start in your career. Reach out to people working in the areas that you are interested in and ask if you can take them out for coffee. You will be surprised at how willing these people are to help younger professionals. This is the quickest way to understand the pros and cons associated with a given career path. It also has the added benefit of helping you build out your network which is important because the finance industry is a tightly knit community.
For those just starting out, it is most important to develop a well-rounded skill set and identify the areas of the industry that you gravitate towards. Because senior investment roles tend to be more specialized it is crucial to have a good idea of what you want to do as well as a game plan on how to get there. It is perfectly fine to explore different things early in your career. The key is to figure out if there is a fit and asking your self if it aligns with your longer-term goals.
My final piece of advice is to keep everything in perspective. A person’s career path is rarely a straight line and there will be opportunities in the future that you haven’t even considered yet. Focus on building a strong foundation and learning as much as you can. It is impossible to know where you will be a decade from now. Work hard and try to enjoy every step of the journey.
Kevin Wong:I think that the most disruptive thing coming to the investment industry in the next decade will be the inclusion of artificial intelligence in the work place. There is a lot of debate about the role of AI and whether it will replace human labour all together. Based on my observations, I believe AI is more likely to be a productivity enhancement tool for the existing workforce rather than an out right replacement for it. As someone who is inundated with unstructured data every quarter, I get excited when I hear about technology-based solutions that can streamline my work flow. Similar to how macros automate calculations in a spreadsheet, I can envision a future where basic investment related functions can be left to the AI. This technology has the potential to simplify the more tedious parts of private market investing, the aggregation of unstructured data, and allow investors to derive real portfolio insights at a much quicker pace.