Are there more pre-MBA private equity positions avaliable than hedge fund positions coming from IB?
Ive noticed that the IBD to PE to HF route is very common but not the other way around (IBD to HF to PE). Are there just more PE opportunities out there than relevant hedge fund opportunities for IB analysts?
Also noticed that in the entering class profiles at Harvard and Stanford, about 20% of the class comes from PE but barely any come from HF's. However, come graduation time, about 5-6% of the class moves into a hedge fund role (presumably former PE associates). Does this further demonstrate that there are less HF jobs out there? Not including quant/macro funds.
I would say that there are fewer hedge fund jobs available, but the main reason people go PE -> HF rather than HF -> PE is because Hedge Funds are generally more open to taking people from diverse backgrounds than PE firms are. Most PE firms are locked into the banking/consulting candidates and usually look only to hire people with that background. Hedge Funds on the other hand are more willing to look for people from other backgrounds as long as they fit their needs. Also, in a certain sense, the skillset from a PE job is more useful at a hedge fund than the skillset from a hedge fund for a PE job.
While touched on I'd add too that PE is much more process driven so its important to know and have experience with the process, which is long. Also, a lot of PE firms have a much greater operational focus and view investments through that paradigm. A HF that is dealing in public securities is less process oriented (not thought/investment process but actual transaction process). In my opinion too, analysis in PE can get a lot deeper. You are marrying you investment where as I consider HF to be more of dating in that you can trade out of your positions. So a PE guy has a skill set of deep analysis of companies and industries in addition to running the process, where a HF guy only has the analysis part. It really makes sense as to why you can go PE to HF but not Visa versa.
IBD analyst to PE/HF conversion rate (Originally Posted: 03/31/2013)
Hello everyone,
What is the typical success rate for analysts moving from IBD to PE with/without an MBA? What about moving to a HF? Also, is the success rate different between analysts who leave after 2 or after 3 years? Finally, does the success rate change with an MFE or MFin compared to an MBA for HF (not PE)?
Better break out 'em spreadsheets, huh?
I never understand these whats the % / average threads. If you are the smartest guy in your class you will end up a top-shop. If you are not you wont.
If you dont want to do PE, you wont go to PE.
The two factors above make a % analysis meaningless.
The smartest guy in my class doesn't have an offer, and I'm in a strong group at a top BB. Go figure.
How are you defining smartness?
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