HBS/Wharton MBA -> IB -> PE possible?
In a few months I'll be starting at HBS/Wharton looking to move into Investment Banking (ideally TMT given my pre-MBA work experience in Technology).
I know how extremely hard it is to go into PE following an MBA even if you have pre-MBA IB/PE experience. How much of an uphill battle am I facing if I work in IB for 1-2 years after school, and then try to leverage my MBA network to break into PE?
no value to add in terms of guidance but would be interested to hear peoples perspective.
what role in tech did you have pre-MBA?
Sorry I don’t have any advice for you, but what did you do in tech and where did you go for UG to get in those programs? I’m interested to know
Very uphill especially if you're going to wharton and not HBS.
I would just target VC, perhaps growth equity roles straight out of business school.
Go into IB post MBA only if you want to build a career in IB.
I know someone who went Harvard MBA --> IB Associate --> MF PE associate.
I’ve seen examples of post-MBA associates going into PE but pretty rare. Issue is that PE firms love people who have extensive modeling experience and frankly the post-MBA associates miss out on modeling as much as analysts, in most cases. However there are exceptions, some post-MBAs I’ve worked with are modeling wizards. One of them went to a MM PE. The path will be much less straight forward but not impossible. You might have to accept starting at a lower level than you would ideally have wanted.
Yes, people do it but it's always a one-off situation that it's impossible to draw conclusions from. Don't go into banking unless you're prepared to stay in banking for the long haul (or corp dev or whatever). Don't assume that you'll be able to get a PE job because a handful of folks have in the past.
If one were to do banking post-MBA and hope to go to PE (however rare that may be), would he/she be better off at a BB or at an EB, where teams are leaner and they could get more technical, hands-on experience?
Also heading to b-school this fall (Wharton/Booth/CBS), so interested as well. Thanks in advance
I would say EB because of more direct modeling / M&A experience. As you noted moving to PE is rare so even if you stay in IB you'll be making more than your BB buddies. Personally I would only choose BB if I'm looking to exit to corpdev or the like
Appreciate the responses - thanks!
Definitely go with the EB route. Post MBA Asso from Booth at Evercore exited to Apollo a few years back after leading a deal. But this was def an exception.
check your facts. why do you think this is so hard? happens every year. many times.
It's going to be tough to go from W --> IB ---> MF PE but it is certainly not impossible. I'd echo what a previous poster said about not going into IB unless you want to stick in IB (or more to corpdev, private debt, LMM PE, etc)
Does someone have to completely screw up to not get at least one IB Summer Associate offer coming from this caliber of schools?
Its about as possible as getting into HBS in the first place. If you are disciplined and you hustle I don't see it being an issue.
I agree with the other commenters though, you should also ask yourself if you don't get MF PE and stick with IB long term if that is something you'd be ok with
very doable depending on the set of PE funds you want to break into - if you arent trying to be at KKR and are fine being in LMM or MM (not UMM or MF) I think it should definitely be doable.
Also depends the level you are comfortable coming in it - if you are fine with Sr. Associate I see 0 reason you shouldn't be able to pull this move off and VP too if you are ok with not going to your "dream" fund
Those from my MBA class who seemed to be most succesful at making the transition were generally VERY flexible on the PE gig they took. Essentially they were willing to make compromises (could even go so far as to call them sacrifices). For instance:
Location- They were willing to go to firms in tier 2 or tier 3 cities (e.g. Philadelphia, Baltimore, Kansas City, etc.). This was after after doing IB work at places like GS/MS. Some were even willing to go abroad.
Firm - Chances are you'll land at a smaller firm in MM or LMM. You may even have to take a position at a newly found firm where the risk is high they don't do well on their first fund and they won't be paying much either.
One last note. These choices may seem like ones you'd being willing to make, but keep in mind what happens at this stage in your life. After MBA and IB, you'll likely be in your early to mid 30s. A fair chance your life circumstances have changed so you have to ask yourself questions like: Does my spouse want to move to a tier 2 city and start a new career there or you may have a new baby and are you willing to risk lower pay and less certain career trajectory?
Don't have much to add other than I agree with 23mich completely, particularly the comments about life circumstances. That said, sometimes this cuts in your favor as moving to a smaller city can often mean a larger home and better work/life balance, which is very desirable if you start having multiple children.
how many years of post-MBA IB would you recommend before trying to jump to PE? would you say something like 2-3 years and move to PE in a senior associate role?
It’s possible, but you have to be comfortable in banking long term and view a lateral to PE as “gravy.” Not all PE is created equal, and finding yourself stuck in a mediocre fund in your 30s is not ideal.
I made the lateral move, but honestly got very lucky and timed it right. My same position doesn’t exist post COVID and I would have been in banking for another 3+ years in a role I didn’t enjoy.
what type of fund are you at in terms of fund size, geography, and verticals?
Infrastructure fund within large cap PE firm. I should mention I worked at a small energy fund before business school which helped. Plus my particular role is very specialized
I would say probably...imo
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