Investment Banking Analyst vs Private Equity Analyst
Hi everyone,
I need advice on which offer would be more beneficial in the longterm. For my junior summer, I have two offers. First, is an Investment Banking Summer Analyst position at Guggenheim. Second, is a Private Equity Summer Analyst position at a MM PE firm. The PE firm has an AUM of $1 - $2 Billion. Both summer positions will likely lead to full time offers. Guggenheim has a great SA/FT retention rate. The PE firm only hires as many SA as they need Analysts in the next year. In other words, my FT position at this PE firm is guarenteed unless I do something huge to screw up. Overall, my question is, which offer would be smarter for someone who wants to end up in PE ultimately. Would my opportunities of going to Guggenheim and then recruit for PE exceed this $1-$2 billion PE firm? What kind of compensation should I expect for this size PE firm at the Analyst and Associate levels?
Thank you
Personally I would go with Guggenheim. I personally turned down PE for an EB. Also, $1-2B is a small shop (assuming this isn't just their latest fund and their total AUM)
Key things: First, I would ask is what is the A to A promote for the PE firm and where have previous analysts gone. Did they go to better PE firms? Stay on as associates? Etc, etc. A simple linkedin search will do tell you or look at company page and look at the current associates.
Second, by going into IB would I get into a better PE (upper MM/MF) than this current offer that I have? I'd like to argue that for most EBs I'd probably have a better shot in landing somewhere better. I personally believe in my skills so therefore not exactly worried about missing out on this PE offer.
Third, for PE firms usually they only hire 1-2 SAs while for EBs you have a class of 15-20+ kids with you. I want that camaraderie instead of being by myself hacking it out, seemed pretty daunting to me honestly.
Lastly, does the PE firm have a good training program? BB/EBs churn out professionals and bankers. While I haven't worked in the industry I'd like to assume since the IB -> PE model banks have done a good job training. What if your PE firm doesn't train you as well and its all on the fly. (This is more of a small point but something to consider)
These were my thoughts when I had to decide between a upper MM PE vs EB.
No, go Guggenheim. They won't even give you FT, and your exit opps aren't necessarily better.
Don't you worry about being identified?
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