[Post-MBA Job] Investment Banking or Private Equity

Some of these questions may seem elementary but I frankly do not have any private market experience so please bear with me.
1) I would like to explore working in the private market, and I am thinking whether I should first get some banking experience (e.g. TMT) or jump directly into privat equity.
2) It appears that pivoting into private equity is increasingly difficult the longer I stay at IB, but is the grass that much greener on the other side (WLB / Comp)?
3) It seems like an apple-to-orange comparison, but if I value optionality, do I theoretically have more exit opps working in banking with a strong brand name than a MM/LMM PE firm?
Thank you!

 

1) Jumping from IB to PE post-MBA won't be super easy, but it's doable. You probably need to get banking experience first so you can learn how to manage a private transaction process - there are some skills you just don't have coming from your background. Luckily, you have true buyside/investing experience, so it'll be easier to make the transition to PE since you've worn the investor hat previously. 

2) Agreed it's harder the longer you stay (also you'll probably come in at the post-MBA level regardless). Grass it's necessarily greener in PE. Hours are probably better if you're in LMM, but pay is more variable/deferred/uncertain with a carry component. At a semi-successful fund pay is probably higher. Work is probably more fun, but there is the aspect of portfolio management, which you may or may not like.

3). ehhhh not sure about that. I see the argument, but buyside doors close if you stay too long in IB, and you could leave PE for basically the same roles as you could leave IB (you're just not likely to leave PE...)

 

If you end up at some crappy LMM PE post MBA, opportunities can be limited. Seems to be the case at least at my school, the few PE summer interns I've spoken to seemed to be focusing on mostly micro-sized deal flow and pay well below market (at a T20-T25).

Out of all the finance jobs at my school, IB opens the most doors and it's not even close.

 
Most Helpful

Dolore itaque voluptas voluptas facilis et sit nobis. Eaque incidunt totam nostrum ex. Aut et fugiat harum consequatur tempore. Ipsum molestias molestias iste quis qui repellendus. Quisquam rerum quis voluptatem reiciendis.

Accusamus sed fuga consequatur magnam voluptate ex provident. Ea unde et qui ex ut vero. Non sunt similique omnis impedit quis iure.

Est eum sunt doloremque inventore. Illum minima aut eaque vitae aut optio quasi.

Ducimus voluptatem impedit est iste magnam atque. Ex voluptas quam et explicabo est quibusdam eligendi. Qui laudantium nesciunt ut ea facilis.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Lazard Freres No 98.9%
  • Harris Williams & Co. 25 98.3%
  • Goldman Sachs 17 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.9%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 04 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (21) $373
  • Associates (91) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (68) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (147) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
CompBanker's picture
CompBanker
98.9
6
GameTheory's picture
GameTheory
98.9
7
kanon's picture
kanon
98.9
8
dosk17's picture
dosk17
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”