Manager at Big 4 Corporate Finance OR Analyst at 3rd tier local PE
I am having a difficult choice and I really need some advice. Appreciate your thoughts.
My background: Non-target undergrad plus finance master degrees. Joined Big 4 corporate finance team as SA and had 4 years of M&A experience and now just 1 year below manager. I am moving to a developing country and had received 2 offers there:
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Manager at a Big 4 corporate finance, similar comps level as now, high base + low bonus. Deal exposure will include Cross Border buyside, local sellside, and fundraising. Deal size around 20-200m. Industry varies but mainly in manufacturing / healthcare.
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Analyst at a 3rd tier local PE, mainly invest in local market, half of current base pay + 1x bonus, so overall comps may be similar. The fund’s AUM is around $100m and deal sizes are around $3m-5m. Takes minority positions from 5%-20%. Relatively new local PE. Minimal past track records.
So my questions are:
1. In the long run I want to do PE or at least function in an investment role. My take is that Big4 CF will give me better deal exposure but the PE will give me buyside experience. However, the fund is only 3rd tier and only willing to offer analyst position, not that ideal. So which choice will create more opportunities down the road towards a relatively decent MM PE?
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If I continue as a manager in Big4 CF, will it create better opportunity to join a better PE or will it be increasingly difficult to jump to the buyside? Should I take the manager role and wait for better opportunity?
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What other information of the PE should I obtain to assess whether it is a good one or not?
Thank you.
Big 4 corporate finance won't do much for you in terms of PE. Better off taking the PE gig and learning as much as you can and then lateraling to a more legit shop. PE experience is always better than non-PE experience.
How difficult would it be to lateral from a MM PE firm to a megafund (Blackstone, KKR, etc.)? I've heard that they prefer associates to be come straight from banking
Difficult. Doesn't happen that often. People usually move downstream (go from megafund down to upper MM).
Thank you ledger123. Appreciate your reply. How easy or difficult do you think it is to lateral from a 3rd tier PE to a more legit MM PE?
My concern is that once I move from a Big 4 brand name to a no-name PE, people may not value the experience and I could be stuck in the no-name PE and struggle to move out. I have seem this happen to other people who got stuck and has difficult getting out.
Tough to say. It's definitely not an easy road. But going from a Big 4 to a legit MM PE is nearly impossible. Take a look at the profile of associates at the legit MM PE firms. They're all from banking / consulting and / or have some PE experience.
Thank you ledger123. It's really helpful. Just one more question.
What is the main quality an MM PE will be looking at in a candidate apart from good technical skills? From what I see, a Big4 corporate finance gig will give you good transaction experience versus ibank.
Besides, do you think a top MBA will make it possible to go to a legit MM PE without going thru ibanking? Or is ibanking experience still a must? I am now 30, is it getting too old if I try to break into PE after taking a 2 year MBA?
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