BB vs Midcap/small PE
Assume that one has the chance to either start at a BB (possibly MS/Goldman) or at a Midcap/small PE fund (Ardian, Aurelius, one equity partners) after their UNDERGRAD studies, which would be best in regards to raise their chances for Bschool and to transition from europe to the us?
I am guessing that you have received an offer for the German market. Placements of Aurelius, One Equity Partners and Ardian will differ significantly. It depends what your goals exactly are. The easiest way to just end up in the US would be to start working at a BB and then move internally to their US office.
What about the option to start my career in a midcap pe fund and then apply for a mba at a M7 School?
Possible. Again, the chances to get admitted at a M7 school will highly depend on which of the listed funds you are going to work for and obviously what you'll achieve while you are there. For example, Aurelius might be well known in the DACH region, but less so in the US. Keep in mind that landing a PE gig in the US is already hard for US citizens. Throw your unfamiliarity with local customs (understanding the end customers) and your lack of network, I think it will be quite hard for you to compete.
In the end, the easiest options would be to move internally at a BB.
Feel free to drop me a PM, especially if you want my take on the PE fund for which you could start working for.
Small PE vs. Top Tier BB (Originally Posted: 10/12/2010)
The buyside is my ultimate goal. I think that I would be most satisfied at a VC firm but am also seriously considering PE/HF's.
I have two offers and would like to hear advice on which to accept.
Offer 1) Top tier BB firm in their top tier LevFin group
Offer 2) PE firm with ~200 million in AUM seeking to invest in growing companies with assets of $10 million and equity capital needs of $5-20 million
Please include explanation for your pick...
Thanks!
You've basically just made the statement "My ultimate goal is pizza", then asked us whether you should have steak or pizza for dinner. Offer #2 is private equity, it is the buy side. Are you asking which you should do to maximize your chances of working at Blackstone one day? Or to maximize your chances of working at an awesome hedge fund? Or a cool VC firm?
Or do you really just want everyone to tell you that you have great options and you can choose either?
Whichever you think is appropriate I suppose...
No, I just don't know much about the quality of learning experience at a PE firm that small. Do you think I would be better served to work at a large, well known bank for a few years and then jump to the buyside or would it be better to work at a small PE firm and try to lateral to a larger firm? Would work experience at a small firm still be good for b-school? Any general thoughts like that...
The other nice thing about MM PE funds is that they often have opportunities for advancement without an MBA - I know several guys who have gotten promoted directly to partner-track at smaller PE firms after several years as an associate. You really just need to decide what kind of career path you want - do you want to be Henry Kravis, or are you happy actually seeing your family, pulling down several million a year, and relaxing a bit?
Boutique PE vs. BB Middle Office? (Originally Posted: 12/31/2012)
Hi all, I know this question seems like a no-brainer, but read on, please.
I'm a fresher with zero prior modeling or finance experience. I've recently received an offer from a boutique PE firm (IB/PE, the money being offered here is incredibly low.
On the other hand, I'm on the brink of receiving an offer from a BB in a middle office role (financial analysis of revenue & AUM, projections, etc). The money here is very good and where I'm from, just having this name on your resume, even in a mid-office role, is incredibly prestigious and can open a lot of doors.
So now I'm confused as to what I should go for. Would appreciate any suggestions regarding this. Thanks!
Hi. First of, how did you come up finance dep being MO?
Both FT? Confusing. If you want to work in PE, you would first have to break into FO from this BO role.
What's the salary difference?
I'm a Chartered Accountant. Its a pretty prestigious qualification and the BB hires CA's in bulk for this role - even freshers.
I landed the PE role via some creative networking - I'll post that story if I accept the PE job. Ultimately the interviewer really liked the passion that I showed for this industry. Plus the fact that I nailed the modeling test helped. I am the only fresher given an offer.
Salary difference will not seem much in USD, but it's enough to matter in INR. One other, albeit small, point is the work culture. The PE is a tiny office with less than 10 people managing the entire AUM. Working in that BB could be an experience to remember.
I promised earlier that if I take the PE job, I'll post my story on WSO. Here it is... I posted it a few days ago:
//www.wallstreetoasis.com/forums/pe-cracked-networked-my-way-in-via-faceb…
Thanks to everyone who helped cement my decision. I'm starting work soon and don't regret it one bit :)
Take the PE role and get applicable experience. It is a no brainer. Being able to talk to interviewers about deals you actually worked on is a good thing.
I'm gravitating towards the PE job, yes. I suppose not earning in the top bracket for a year or two might not be so bad. Plus, with zero prior modeling experience, there's no guarantee that I will get another chance in the industry if I skip this one.
PE without a doubt.
PE all the way
Thanks a tonne, people! Feels good to have received responses from veterans like SirTradesaLot. Thanks a everyone!
I have accepted the PE job offer. Joining mid Jan. I'll be posting the story of how I networked my way into this job soon. Right now quite drunk from the new year's eve/first job of my life party. Happy new year!
Congrats and best of luck!
take PE.
working BO in a financial services company sucks ass from what I've heard. Lateraling from this PE gig to IB or a stronger PE after a a few months to a year wouldn't be hard at all. Just make sure you teach yourself how to model like a rockstar and keep building on your network.
Cool stuff man, congrats & enjoy.
^Thanks!
Decision between BB and Small PE/HF (Originally Posted: 11/13/2007)
I am trying to decide between two full time analyst offers. I currently have an offer for IBD at UBS and also an offer at a newly established shop formed from the a 200 year old company divesting its assets and being flush with cash. with $1 bn+ of their own capital which they are devoting between a Hedge FoF ($400m), PE($150m and increasing as needed, and a HF ($150m). They only employ about 20 people and have no formal training program. Offers are almost identical.
I am not sure of my career path but am intersted in B-school and PE although eventually would want to be at one of the big name shops. Two of the upper level people went to HBS and one ran M&A at a large bank that was acquired a number of years ago. Another of the top guys was a founder of Quadrangle. Any reason why I should pass up the training of a BB and go to theis shop?
The profile of principals of the investment job seems to be legitimate.
If you want to do PE down the line - and you are sure that you are not just going to be doing meaningless / reporting / investment administrative work; then you should consider the latter job.
BB experience will certainly help and is probably the more established route to take. However, job market might not be there 2 years down the line. IB itself might not be too stable.
If the shop is legitimate and you feel that it offers a good work related experience then you should seriously consider it.
JWS,
I was in a very similar position after graduation in 05'. I made it to final rounds at two BB and only received 1 offer. I ended up taking a position at a fledgling PE shop that was a newly developed arm of a massive real estate company. In the past two years we have closed 2 multi-billion dollar transactions and several other smaller portfolio companies. The only downside has been the lack of formal training (as you mentioned, I have had to essentially learn modeling skills/valuation techniques on my own by reviewing other analysts work) but the upside has been incredible. I have been given far more responsibility than any of my friends on the sell-side and my experience has been invaluable. I have had the opportunity to spend significant time on the ground in Europe and Canada analyzing potential acquisitions. My group is smaller than yours (about 12 people), which means that I interact with our CEO, MPs, and MDs on a daily basis and the environment is very collegial and almost like a family. This environment has benefited my personal career development greatly as I have been forced to learn on a steep curve and have been placed in more senior roles. Feel free to PM me.
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