Commercial Banking vs. PE FOF
Hi Guys,
So I graduated from a non-target and I've been in a credit analyst program at a large commercial bank for two years now. I have an offer to go to the associate credit program at the bank in about six months. I have also been interviewing with a large PE FOF and feel fairly good about my chances of landing a first year analyst offer. (EDIT: I just landed the offer) From what I can tell from the search function and compensation database, total pay at the FOF's top out around $600k all in (at the senior levels), whereas commercial banking compensations top out around $300k all in (at the senior levels). I know this is "peanuts" to all you flashy IBDers, so go easy on me ;)
So, my questions are:
(1) What are your thoughts about the two career paths and possible exit ops?
(2) How accurate are my compensation assumptions? Do FOFs offer %carry as you move up?
(3) Is an IBD summer associate gig out of the question during a top 10 MBA program with either or both of these paths?
My first preference at this point would be to lateral into an IBD analyst role, but that hasn't worked out so far. I'm nervous that if I don't hurry up and lateral soon while I'm still at the analyst level, then all options will be off the table and I'll be stuck.
Any insight would be greatly appreciated. Thanks in advance for your help.
----------------EDIT---------------
I have also now developed a couple RE PE leads as well. One with a BB on the asset managment side and one with a smaller firm on the acquisitions side (1B real esate AUM / 3B total AUM including all PE asset classes).
Any thoughts on these compared to the first two opportunities above?
600k all in for a 1st yr analyst sounds a bit off to me bro.
Haha, maybe I should have clarified. By "topping out" at 600k, I meant at the senior levels 15 yrs+/- down the road.
With this being a lateral move, I'm more concerned about what my earning trajectory would be over the course of my career rather than what I will make day one. I'm not expecting a substantial pay raise, if any with a first year analyst gig compared to the associate program.
I did an SA at a PE FOF shop and I loved it, albeit the diligence is not what you might find in a true PE shop, as you're mostly analyzing PE fund managers as opposed to portfolio companies. Interested in feedback as well.
Im was in a similar situation, im doing a commercial banking program and I decided it over another P/E offer. I will be getting a lot more exposure and will be working in a real FO role with some very large clients.
Value -
Thanks for the input. Are you in a particular group or is it purely rotational? Also, are you on the capital markets/IB side of the bank or are you on the credit side?
Its a rotational with different departments. I am initially a credit analyst, but then transition to capital markets. In terms of compensation, these programs have higher pay once you are done with the rotations. Normally these programs are made in order to basically earmark the next wave of executives. I would get more detail on the program, but I know many others that were in banking rotational and some are VPs that are making six figure salaries (40 hours a week) and they are less than 27-28 years old.
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