Moving from Corporate Finance to Private Equity
I have been a member of this site for quite a bit of time and honestly have let things fall on the back burner with my job and relationship taking priority for me. I know I am not the first and won't be the last one to do so. I have been in my current position for little over a year working at Underwriter's Laboratories for their fastest growing business unit in the corporate finance division. While I absolutely love my job and everything that has come with it be it the travel, experience and increased passion for finance. I know that ultimately my end goal is Private Equity, and any path I can take to get there. However, I find myself in a difficult position. I found my love for finance during my junior year so way later than most people on here and combine that with going to a non-target/being in Atlanta. A place I have found to have very little networking events and ways for one to make connections. I know that it will be hard but if I truly want this I have to go after it.
My goals for the immediate future are to work on LBO modeling and to construct a plan to find a job through networking. I know that trying to go the traditional route will not go well for me as there are those who would destroy me in every aspect of usual importance when it comes to resumes.
Just my first post of many. I hope.
Corporate Finance to PE (Originally Posted: 10/31/2014)
Graduating from GE's Financial Management Program (FMP) in the next couple of months, looking to move into Real Estate PE. FMP was great for building a foundation in finance but I'm looking to make a big jump. Considering MBA to get me there but want to find a job between FMP and b-school. Thoughts?
Did you have any real estate experience while in GE? Without it, it may be rather difficult (unless you have outstanding network and people who are willing to bat for you).
Otherwise, look to go somewhere in the real estate industry (perhaps in the corporate finance function using your GE work exp) --> MBA --> REPE
GE FMP is the gold standard for F500. if you did well there, which i assumed you did, you can get into a top MBA program (top 10, perhaps MBA business schools">M7 with some pull).
I know that you can definitively get IBD, but getting into REPE might require some more elbow grease, as Noseonthegrindstone alluded to.
CorpFin to PE (Originally Posted: 11/28/2010)
How do I leverage corporate finance experience at a top 10 Fortune 500 firm (I will be working in treasury, pricing, & forecasting roles) to pursue this track:
Corporate finance --> top 10 MBA --> ibanking --> PE.
Do you think it would be possible to skip ibanking and go directly into PE after getting an MBA? Preferably, I'm looking for ideas from those currently in PE that know what skills are needed to succeed in the industry; however, all comments are helpful.
Thank you in advance, your thoughts are greatly appreciated,
-MKballer
Why not try for PE internships when at top-10 b-school? If you can't do that, then IBD internships, leverage them --> PE FT?
Yeah, I would second Rick James (what did the five fingers say to the face??). It will be difficult though, since PEs are very selective on who they want/need. Like, one firm will need someone with healthcare exposure and so on. Once you become an IBD associate, it becomes more difficult to move to PE.
Thanks for the ideas, guys. I always thought of ibanking experience as a pre-requisite to PE.
According to Notarizer, it sounds like PE internships are possible at a top 10 b-school w/ no prior IBD experience.
Regards
a private equity firm is extremely unlikely to hire somebody into a post-mba role who was not previously a pre-mba private equity professional in to a deal team role.
there may be more ops specific (e.g. lately have been working closely with a carve-out specialist who knows a ton about treasury / tax/ general corporate best practices) roles that may be available but these are not jobs that are easy to find.
Corporate Finance to PE (Originally Posted: 10/31/2014)
Graduating from GE's Financial Management Program (FMP) in the next couple of months, looking to move into Real Estate PE. FMP was great for building a foundation in finance but I'm looking to make a big jump. Considering MBA to get me there but want to find a job between FMP and b-school. Thoughts?
CorpFin to PE (Originally Posted: 11/28/2010)
How do I leverage corporate finance experience at a top 10 Fortune 500 firm (I will be working in treasury, pricing, & forecasting roles) to pursue this track:
Corporate finance --> top 10 MBA --> ibanking --> PE.
Do you think it would be possible to skip ibanking and go directly into PE after getting an MBA? Preferably, I'm looking for ideas from those currently in PE that know what skills are needed to succeed in the industry; however, all comments are helpful.
Thank you in advance, your thoughts are greatly appreciated,
-MKballer
Deloitte Corp. Fin (M&A) for PE? (Originally Posted: 08/24/2014)
Hey all
I got an interview with Deloitte Corp. Fin in their M&A department. From what i can read it's comparable to a MM IB - less hours(60-70), less pay compared to BB. Role is a jack of all trades - i am worried whether the modeling experience is sufficient to switch to PE or VC in a few years.
I'm not a prestige whore, and dont need to switch to a megafund and earn $$$$ - value my time too much to do 100+ hours IB - just need sufficient experience/modeling skills to work in a small/MM PE fund. (We have a bunch of these in the Nordics)
Any advice and inputs are welcome.
/S
Well, I can only give you anecdotal evidence, but I networked with a guy here in the US in their Corp Fin group. He had worked there for two years and just switched to a pretty respectable MM PE in Texas. Granted though, from what he told me a lot of the work is a much lower on the dollar level than a EB or BB IBs, but still averaging 70-80 hours a week in the office. I can't say if it's comparable in the "Nordics", but it does seem to be possible.
Comp is lower and hours are better, but since its acquisition of McColl, it is more investment banking like. The difference between DCF and other MM IBs is that you are not doing purely M&A necessarily. They do quite a bit of private market capital raising, restructuring and debt advisory.
It will be more difficult to jump from DCF to PE than say Harris Williams, but it is doable.
If your interview is with one of the legacy McColl offices, particularly the office in Charlotte, they have excellent placement into PE. Hours are not necessarily less than BB, but that mainly depends on the office.
corporate finance analyst to PE? Associate? what is typical? (Originally Posted: 01/25/2009)
after working as an analyst for 2 years what is a typical career path? are the analysts usually offered associate positions? how much is the pay difference from an associate position at the same firm to a PE position ( would it be an analyst or associate position?) i'm talking about a BB for the analyst/associate. Any information is appreciated.
bump
After a two year BB analyst stint your general options are as follows:
1) Sign on as a 3rd year analyst with the possibility of being promoted directly to Associate the following year.
2) Apply to b-school 3) Jump to the buyside
depends on the PE shop whether you would be hired on as an associate or an analyst
would the PE pay be significantly higher usually? (at top firms) compared to an associate (at a top bank)?
bump
Okay, flgators, you need to quit bumping your thread every few hours. Your question is going to get answered but calm down with getting all 'bump' happy.
and yes, your upside is significantly higher.
Why don't you do a search first and then post?
VP Corporate Finance to PE - Transition Guidance (Originally Posted: 03/23/2017)
Hi, I just joined WSO and this is my first time posting. I could use some advice and guidance on next steps for a career shift.
Here is a little background, I currently work as a VP in corporate finance at a Fortune 500 company, in NYC. I have 11 years of broad experiences across the corporate finance landscape. From these experiences, I have realized my passion is evaluating investments, and working to make deals happen. I have been involved with or lead multiple acquisitions and divestitures.
To pursue this passion, I am earning my MBA at a Top 5 Executive MBA program, graduate August 2017. This allows me to keep working while going to school. The goal is to join a middle market to small market PE firm around graduation time. I fully understand that I do not have a typical banking background, and I have a little more experience (age) than your typical PE analyst. I am hoping to start as a senior analyst, this will allow my compensation to not take too big of a hit. My questions…
1 – Is breaking in to PE as a Sr. Analyst realistic or the right level? I am not concerned about the skills of the role, but more concerned about being offered an opportunity
2 – What steps should I take to reach out to PE firms or recruiters? The EMBA program is not set up to push graduates in to new roles
3 – My skill set is in analyzing financial statements and forecasts, and really being able to tell a story from the numbers. How important is that to PE firms?
Looking for advice. Thanks!
How much do VP's at Corp 500's make?
180 - 220 base and bonus
Interesting question, I'm also interested in seeing what the thoughts are. I am in CD and like where I'm at but interested to see what options may be available down the road.
Corp Finance to PE - Updated (Originally Posted: 10/16/2017)
Fellow Monkeys,
I'm a first year analyst at a respectable MM (Jefferies, Mizuho, Macq) in a corporate finance advisory role covering TMT. The bank is known to have some high profile clients in the TMT space and I have had some exposure to some rather large names. Before my role here, I was a credit analyst at a buy-side CLO shop, analyzing pretty much every industry other than healthcare.
I have been hitting up some recruiters (SG, Ratio, CPI) with surprisingly good results and have set up a few introductory headhunter meetings. For all those in PE, what would you say the major shortfalls are in my situation when comparing myself to a typical BB IBD analyst?
I haven't necessarily been exposed to much M&A work. The modeling I have been doing is more reliant on organic growth, supplemented by strategic (think future acquisitions) growth communicated to us by the company's management team.
I have practiced some of my LBO modeling skills and I can say I am comfortable with the exercise.
Other than modeling, I can confidently say I am well equipped to analyze a business from a buy-side perspective (for a Jr. guy at least). I was the top analyst at the CLO shop and learned a lot about the different industries I covered. I don't think I fit the mold of an "analyst who can only plug and chug away at a model/pitch book".
Will the lack of real M&A work hinder my recruiting process?
bump, any help would be appreciated.
Only thing I learned from this post is that you don't work at Jefferies
Corp Finance to PE (Originally Posted: 08/23/2017)
Hello WSO,
Not a frequent poster here, but had a general question. I am a 2nd year analyst at a top Japanese bank, working in the corporate finance and advisory department. I am currently on the TMT team covering mostly investment grade corporations. My previous experience includes 1 year of high yield credit analyst work at a buy-side credit shop. I graduated from a public university in NYC (Think Hunter, Baruch etc.)
How should I parlay this into an opportunity as a PE associate?
I plan on teaching myself various models for different deals seen at PE shops in the meantime.
Thanks in advance, Newbie Monkey
Also interested to know.
IB -> Corp Fin -> PE ? (Originally Posted: 10/22/2009)
Hi,
I was wondering if after being an analyst at a BB , it makes sense to do corp. fin / biz. dev within the same industry for a few years and then make the move to PE?
That way you have both the banking and the industry experience .. would PEs look favorably upon this type of experience?
Interested in long term PE, but only within my specific industry group, so wanted to do a deep dive and understand how the industry works ..
At crossroads now and need to make a decision quickly, so would appreciate any type of help , esp. from guys at PE shops currently!!
Thanks a lot - appreciate the advice.
Quite a few come from industry, but you might have to wait a bit longer and move in at VP level or above. Industry knowledge is valued, but banking is valued more at the associate level. If you're passionate about the industry, work in industry first. Just make sure to manage your expectations - your BB experience may not be a big factor after being away from banking for a long time, and you won't have the same access to recruiting as the typical "BB->PE" path that headhunters help you through.
So corporate finance is a good stepping stone to private equity? What exactly do people in corporate finance do day-to-day?
Also, sorry for another newb question, but what is BB?
24Yr Old Corp Financial Analyst Looking to Jump to PE (Originally Posted: 05/01/2016)
Hey everyone. I am currently a Financial Analyst at a large Fortune 500 manufacturing company and enjoy it for the most part but my passion is for investment banking, private equity, trading etc.
My experience is mostly in the corporate finance world and I feel this sets me apart and allows me to analyze investments from another perspective. I am always eager to learn more about anything related to private equity and investing and I have worked hard to learn about this industry in my free time. With that said, I cannot emphasize enough how passionate I am for the industry and how hard I will work to be successful in it.
My main experience within corp finance relates around financial statement analysis, journal entries, internal controls, cost accounting, financial reporting and variance analysis.
I am currently in Charlotte and looking to make the switch. I have 2 years experience in corp finance and had 5 internships in school - only one of which was investing related - at a small 2 person consulting firm. What are my best bets for getting into this industry and how can I best position myself? The problem I'm running into is most positions I am seeing listed require 1-3 years of IB specific experience rather than any corp finance experience. I'm getting a little worried...
What would you do in my shoes?
Thank you so much guys.
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