Does Wharton make sense for me?

I just got accepted to Wharton and I wanted to get some outside opinions on if it makes sense for me to go. I am considering an MBA because I would like to get into an operationally-focused, turnaround PE firm and also would frankly just enjoy learning more about other aspects of business (not finance and accounting).

I'm currently a VP at a PE fund with an atypical investment strategy (more financial-focused, rather than operational). Unless I ended up on the high side of the comp range disclosed in the career report, I'd be taking a paycut post-MBA, however, my background lacks any sort of big names - I went to a non-elite private college and worked for a boutique investment bank, which hasn't done me any favors in recruiting. I would have gone to b-school earlier in my career, but had a medical issue make it difficult until now. I'm married and I'll be 32 when I finish the program in 2017.

Does anyone have any insight as to what recruiting would be like for someone in my situation?

Thank you all in advance for your feedback.

 

I would say yes, in large part because of the optionality a big name like Wharton will give you, especially as you said you came from a relatively unknown college and bank etc - you never know what may happen in the future. Also might be exactly what you need to make the move you want.

I'm just an incoming analyst who plans on an MBA sometime soon though so take that with a grain if salt

 
Best Response

Have you met and spoken to people in "operationally-focused turnaround" PE firms? If not, I would strong suggest you do or try to find out about them, their backgrounds and thinking, which will probably be most useful in helping you make your decision.

A Wharton name I am sure will look good and help, but what is it that you want in the end? Do you like what you do and the money you make? On the latter you might have to take a step or two back (and this is fine) but you have a spouse and perhaps thoughts of a family as well... You are now a VP in a PE shop that is financially focused so you might be pinned by society as one of those types. Is your shop good? Or do you have a good rep? Could you move to a smaller/newer shop and up the risk curve for greater upside? Or move to a bigger shop with a good payday? Or maybe there are turnaround firms that need people with your industry expertise and financing abilities rather than actual operations (though you'd deal with them and learn from those people).

I'm literally just throwing out ideas/questions that come to my mind, so if some are not applicable, do forgive me. It's just that I feel that typically we do not ask enough such questions of ourselves and others when making life decisions...

Hopefully someone with some relevant experience here can opine.

Good Luck

I used to do Asia-Pacific PE (kind of like FoF). Now I do something else but happy to try and answer questions on that stuff.
 

No. But OP wants to make a switch...

Another question for the OP - have you thought about asking others in the turnaround space to see if you could just make the jump? Start at a lower level or in a new fund, get in from the ground, or whatever etc? I think that would be an easier and more relevant path than doing the MBA (even with the name it carries)... Ops is a lot of things (procurement, supply chain, labor, etc etc etc)...

Edited to add: or talk to your friends at McKinsey/BCG etc? Although I'm not convinced about their merits all the time, a number of their alumni go on to do ops stuff...

I used to do Asia-Pacific PE (kind of like FoF). Now I do something else but happy to try and answer questions on that stuff.
 

It's probably worth it because getting a Wharton MBA is tough to pass up, but to play the other side, are you on a partner track at your current firm or do you need to get an MBA to advance? Do you get carry? Is your current firm large enough to advance and make the money you want for the long term? Would you be ok staying at your current firm for the long term or do you dislike the strategy that much and feel the need to change? Do you like the people you work with? If you've got a good thing going and are already at a fund where at 29/30 you're a VP, what's the risk of leaving?

If you go back to school, what's the risk of not getting into a better fund? Wharton opens many doors but PE's pretty competitive even from Wharton and is there the chance of getting stuck into a similar fund with a similar strategy at a step lower as a post-MBA associate than where you are currently, two years from now (or from next fall), $200k in the hole and missing 2 years of income? And will you be competing against a bunch of Ivy undergrads who worked at a top BB and had PE experience?

Then how does it all fit into your life? Does your wife mind moving to Philly for two years, then most likely moving again? Thinking about kids anytime soon, and if so, does spending/borrowing $200k and giving up 2 years of income impact or delay that at all? And if you end up as an associate in 2.5 years rather than where you could be in 2.5 years from now as a current VP, how many years does that put you back in life/career (would you get stuck for 3 years as an associate until you make VP again, whereas if you stayed as a VP would you be a Principal or more by the time you'd make VP at a new fund post bschool-if you stayed where would you be in 5.5 years)? And if you want kids, would going back as an associate and working those hours again suck if you want kids?

Like I said, it's tough to pass up a Wharton MBA, but those are just some devil's advocate type of things to think about. I'm not saying one way's better than the other.

 

Thank you all for the feedback. Definitely echoing my own thoughts. On the one hand it's hard to pass up Wharton, on the other hand, it's hard to leave my current job, spend money (and forgo 2 years of earnings) for something unknown.

My wife is fine with whatever we do, so the family considerations are not huge, frankly, after working nonstop for 8 years, I might enjoy a break.

My main motivation here is to switch verticals within PE. Our firm is well known within our niche. We are have about $8bn AUM and my group manages about $2bn. However, because of the niche we are in, I've found it difficult to get out of the niche, especially without any big names for people to hang their hats on.

At my current firm, I'm in the carry now and I could probably stick around for a long time and after 7-10 years could reach the MD-level, but I don't really have a passion for what we're doing right now, so I'd rather get on this track somewhere else.

I actually was an associate at a distressed PE shop and left so that I could see the bigger world of finance at my current firm. Now, after seeing that world, traveling internationally, etc., I've realized that what I am truly passionate about is turnaround investing, but have found it very difficult to go back.

What would really help me is any insight into the availability of VP-level positions out of Wharton. If the only thing on offer is associate positions, then perhaps I'm better not doing this. However, if there are higher level positions to be had (there seem to be some people who get hired into some huge comp packages - so I'm assuming those aren't just associates) then it might be worth the gamble.

Thank you all again for your insights.

 

Realizing that there's always the exceptions(s), for the most part post-MBA's go into associate roles. That's what they recruit from bschools but that's also because most people who go to bschool weren't previously a VP in PE. I would take a look at CompBanker's thread and maybe even reach out. I'm sure he addressed this issue. I'd also just call up a few of the funds that you'd be interested in and ask them if you'd theoretically be more attractive to them with the MBA and what position you'd recruit into. You're a colleague and peer at this point so it's not like a pimply faced undergrad cold emailing the MD of a billion dollar fund...You can probably call someone at Wharton but I skipped bschool so I'm not really sure who that would be. There are probably also other people on this board who are more knowledgeable in the formal on campus recruiting because I went a different route.

And once again there are always exceptions, but generally PE funds like to bring in people at the associate level and train them in the way that they do things, how they invest/their philosophy and personally know the person for years before they make it to the partner level. As you know, PE is less of a BB IB factory floor process and more driven by the top guys at the firm. VP seems to be the kind of fuzzy level because people still can join somewhere new, but think about how many Principal->MD level's switch around firms and aren't homegrown and rise through the ranks. You can, but it's just not that common and unlike banking where you can essentially bring your client list with you and jump firms.

My biggest concerns would be getting kicked back a few years in your career, which you already recognized, and being able to get into the strategy you want on a partner track. It seems to only be getting more crowded at the upper levels of PE with less slots for partners/MD's. The biggest risk I'd see would be not being able to get back on that track post MBA simply because of market conditions at the time you graduate, and that's not a prediction that things will be worse or better in 2.5 years.

As for the outliers on the MBA comp package recruiting scale, I'd imagine those are either guys who were rockstars at KKR or a hedge fund and get back in, or when you see those really large comp packages it's someone who went back to school, took over the family business and dad pays his kid $700k out of the gate.

Good luck.

 

Nope, makes absolutely no sense for you to get an MBA. Seems like a bit of immaturity on your part, to be honest.

“Elections are a futures market for stolen property”
 

Problem with the executive mba, even from Wharton, is that it does not carry the same level of prestige and respect as a full-time mba due to it being exponentially less selective. If the OP wants to make any sort of switch, whether it's company, industry, function, he needs to do a full-time MBA, and Wharton will be a fundamental game changer. No way he should pass this up.

 
mbavsmfin:

Problem with the executive mba, even from Wharton, is that it does not carry the same level of prestige and respect as a full-time mba due to it being exponentially less selective. If the OP wants to make any sort of switch, whether it's company, industry, function, he needs to do a full-time MBA, and Wharton will be a fundamental game changer. No way he should pass this up.

So at what point does it not make sense for a 31 year old with a wife and kids to NOT go back to school?

“Elections are a futures market for stolen property”
 

Sint voluptas ipsum cupiditate porro dignissimos vel nulla. Nam et pariatur ab porro. Similique omnis enim ut. Ut eos natus excepturi nesciunt sit. Molestias velit maxime nostrum quas et dolorem voluptas.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $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
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
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...”