Boutique Investment Bank -> MM PE... Advice?

Did some searching but couldn't find a lot of info on this.

Has anyone successfully transitioned from a boutique investment bank (talking 40-60 FTE, mostly M&A deals in the lower middle market) to a solid MM PE shop (i.e. brand name w/ sizable funds)? If it is possible, how common/challenging would you say this transition is?

More generally, if you decide you are not a lifer and want to transition, what opportunities can you expect after 2-3 years as an analyst at a boutique?

Definitely appreciate any input/advice people are able to provide.

 
Schwarzmanegger:
Are there any not very good looking chicks who are Victoria Secret models?

If you're into fat girls.

The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee WSO is not your personal search function.
 

Recruiting for PE will mainly begin late winter to spring of next year and extend into November with some slowness in August - the megafunds recruit the earliest, followed by the MM PE funds and growth equity shops usually

As analystforhire said, I would start reaching out to recruiters late this year or January of next year to establish a rapport. At BB's or top boutiques, they generally reach out to you, so if you aren't at one, you need to be proactive on reaching out to all recruiters, some will get back to you, others wont, don't be offended, just keep trucking.

When you talk to recruiters, make sure you are on your A game, as they are primary conduit for most buyside shops. Another option, and do this only if you are tight with your MDs, is to ask them for their help and if they know any contacts at funds you are targeting.

When reaching out to search firms, just write a simple email with your resume attached, you don't need to write a cover letter, but describe yourself a little and ask them if they can speak. If you can, reference someone the recruiter knows like, "you placed my friend John Smith at Tailwind Capital and he suggested I reach to you regarding potential opportunities in Private Equity" and so forth.

In regards which recruiters to contact, there are a bunch of threads on WSO for that.

 
Mandata:
i just went through the carlyle list of analysts and associates there are actually not that many GS or MS people a lot of them actually come from accounting or small MM boutiques!?

Well please develop some attention to detail and learn the difference between "Buyout group" and other groups. I can assure you that you won't find a LOT of people from ACCOUNTING in BUYOUT.

 
Best Response

I'm not qualified to speak about PE recruiting (currently at a HF), but the boutique IB to buyside path is definitely more challenging than if you were coming from a BB. My impression is PE tends to be a bit more "structured" in its hiring practices, whereas HFs are more willing to take risks on unconventional candidates if the raw intellectual ability is there. Something to keep in mind.

Three pieces of advice: 1) do good work at your current bank; 2) be aggressive in networking (HHs wouldn't give me the time of day); and 3) be extra prepared when your name gets called for an interview. The first point is pretty obvious, but worth mentioning. Don't be that guy who spends all of his time on networking and practicing LBO models at the expense of work quality. Points two and three are also relatively straightforward. You may or may not have luck with HHs...if you don't, be proactive in reaching out to alums who are generally more than happy to help.

 

"...but the boutique IB to buyside path is definitely more challenging than if you were coming from a BB..."

err, is that still true if it's an elite boutique, say Lazard/Evercore, or say Blackstone?

 

Congrats on your offer!

I think the main driver of your decision should be based on whether or not the higher-ups are well-connected and willing to put in a good word for you come buyside recruiting. Theoretically, some well-connected vps and mds should be able to pick up a phone and get you an interview if they like you well enough.

 

Does the boutique IB have its own balance sheet which it invests (ie will you be working on deals from an investor's perspective - valuable for PE outlook) or is it just an advisory shop (you get technical analysis skills, but not that strong a sense of risk as you are paid to get deals done and are incentivised to leave your clients to manage the risks, unless the IB has a smaller client base and a lot of repeat business).

Those who can, do. Those who can't, post threads about how to do it on WSO.
 

Apologies for the very late reply. I ended up going with the Boutique IB. It's worked out great thus far. I'm planning to stick it out here for a year or two, and then figure out my next move - not sure if that's going to be PE or a larger, more well known investment bank.

scgrad, have you been able to make the move to IB?

 

I'm in a similar situation, except I started off cycle after about 1.5 years in a BO role. My strategy thus far has been to try and lateral to a MM firm or larger boutique, but you seem to enjoy where you are situated. Sorry don't have a ton to add, but would be interest in hearing others opinions.

"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
 

Would really like to hear more on this as well. Just got an offer from a industry (FIG) focused boutique (I guess that's implied by boutique). Works on some solid deals (anything from $55mn - $3BN M&A mandates) so I think deal exposure will be solid, especially given that with another analyst hire and myself- there will be 4 analysts and about 15MDs and 3 SVPs! But that being said, what is the path usually followed to break into PE (from a boutique)?

And duffmt6: when you say off-cycle, when exactly did you start? I think we might be in very similar roles (well down the road anyway) as I have a potential start date of mid-September. Would that be considered off-cycle? Also, so I take it your plan is to transition into a bigger bank (BB/MM)? Are you convinced that is the only option coming from a boutique? Any luck with the headhunters and/or networking?

Thanks guys.

 
PinnacleMan:

And duffmt6: when you say off-cycle, when exactly did you start? I think we might be in very similar roles (well down the road anyway) as I have a potential start date of mid-September. Would that be considered off-cycle? Also, so I take it your plan is to transition into a bigger bank (BB/MM)? Are you convinced that is the only option coming from a boutique? Any luck with the headhunters and/or networking?

Thanks guys.

Started at the beginning of March this year. I get the impression that the boutique I'm at is smaller than yours (less deal flow and smaller deals as well). Sept is definitely late, but I'm guessing you would be lumped in with the analyst class that starts during the summer of that same year.

I'm looking larger boutique/middle market banks at the moment. I think BB is pretty much out of the question unless I do some serious networking. Not sure I would want it in the first place.

I have just started putting out the feelers and haven't had any bites. Headhunters haven't been too responsive thus far, as most are looking to place analysts on the buy side.

With all of that said, I'm not altogether unhappy with my current situation, just worried it will be a hindrance as I try to progress.

Good luck with new job.

"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
 

Gentlemen,

I was exciting to see a thread like this pop-up. I am in a similar situation (been at my boutique for just under a year) and I recently solicited some advice from CompBanker. I have pasted the applicable paragraphs below and redacted the names. However, feel free to PM me and maybe we could get an email chain going so we could discuss the specifics of our situation and offer advice/ideas.

"To address your concerns. First of all, I do think it makes sense to lateral. I completely understand your desire to stick around at your firm, but if PE is your end goal, you're taking a massive risk by staying at [firm name]. That doesn't mean it will be impossible, but recruiting for pre-MBA positions at PE firms is incredibly competitive and it is really uncommon to see someone outside of the well-known MM/BBbanks end up in PE, particularly if they don't have strong academic credentials or connections. This includes places such as [small, lower-MM PE firm] (one of my best buddies did two years at there -- he worked at [well-known MM IB]). Heck, go on almost any MM PE firm's webpage and look at their current associates; they hail from the usual players.

For your second question, whether you lateral or not, I still think you ought to network your way in. I got all of my interviews through networking and the same was true of my peers. That's generally the way PE firms work -- they don't necessarily have a resume drop or equivalent. As for headhunters, I don't like going through them at all, so I don't have the best feedback here. I wouldn't expect you to get much out of them coming from a boutique."

Hope that helps, and like I said, feel free to PM me.

 
Slingin'CrackRock:
Gentlemen,

I was exciting to see a thread like this pop-up. I am in a similar situation (been at my boutique for just under a year) and I recently solicited some advice from CompBanker. I have pasted the applicable paragraphs below and redacted the names. However, feel free to PM me and maybe we could get an email chain going so we could discuss the specifics of our situation and offer advice/ideas.

"To address your concerns. First of all, I do think it makes sense to lateral. I completely understand your desire to stick around at your firm, but if PE is your end goal, you're taking a massive risk by staying at [firm name]. That doesn't mean it will be impossible, but recruiting for pre-MBA positions at PE firms is incredibly competitive and it is really uncommon to see someone outside of the well-known MM/BBbanks end up in PE, particularly if they don't have strong academic credentials or connections. This includes places such as [small, lower-MM PE firm] (one of my best buddies did two years at there -- he worked at [well-known MM IB]). Heck, go on almost any MM PE firm's webpage and look at their current associates; they hail from the usual players.

For your second question, whether you lateral or not, I still think you ought to network your way in. I got all of my interviews through networking and the same was true of my peers. That's generally the way PE firms work -- they don't necessarily have a resume drop or equivalent. As for headhunters, I don't like going through them at all, so I don't have the best feedback here. I wouldn't expect you to get much out of them coming from a boutique."

Hope that helps, and like I said, feel free to PM me.

Thanks SCR - this is some very solid stuff. Assuming you're the one who sent out the group invite, not sure whether the link is working. It asks me to click on it and then log in, which I do - but it never navigates away from the log in page. Also, the group is not showing up in the group search. I will PM to follow up.

 

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