What is the buy side?

The buy side of Wall Street is the part of the financial services industry that purchases financial products and deploys capital that people need to invest. Hedge funds, mutual funds, private equity firms, and other types of asset managers are some of the firms that are a part of the buy side. Most of these firms seek to hire people with experience on the sell side, but some firms do offer opportunities for undergraduates. See below for more detailed descriptions of buy side firms.

Hedge funds

A hedge fund is an investment vehicle that invests in a diverse set of assets. A hedge fund is categorized as an alternative investment, and is only available to sophisticated investors, including high net worth individuals or institutions with significant assets. As an analyst in a hedge fund, you are tasked with assisting more senior people with stock screening, financial modeling, and research. Most hedge funds look for people with one to three years of investment banking or equity research experience. Click on the "Learn More" button to learn more about what hedge fund analysts do, and what you should do to position yourself for this career path.

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Private equity funds

Private equity is an alternative investment vehicle that purchases companies using a significant amount of leverage. Private equity firms perform leveraged buyouts (LBOs) and aim to control the firms for around five years with the goal of selling it for more money than they purchased it for. Private equity firms seek to hire people with two to three years of investment banking experience. Click on the "Learn More" button to learn more about what private equity associates do, and what you should do to position yourself for this career path. 

Other opportunities

There are many other types of firms that also make up the buy side. Any firm that invests capital on behalf of individuals or institutions are a part of the buy side. This includes mutual funds, insurance companies, venture capital firms, real estate investment trusts, and pension funds. Opportunities in this realm are very diverse, so we recommend contacting the Finance Society if you are interested in learning more about these types of opportunities.