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.
Boutique to PE - Top 20 boutiques? (Originally Posted: 07/25/2009)
What would be the top 20 boutiques for placement into PE. Are there any not too-well regarded firms that have particularly high placement in the PE industry?
That's an oxymoron. If they were not highly regarded PE firms would not recruit from them. If PE firms did recruit from them they would be highly regarded and thus very competitive to get into.
if a boutique sucks, why would a PE firm want to hire their people?
bump
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If you're into fat girls.
what level of PE fund are you alluding to?
~250MM - 500MM
Boutique to PE - Is it possible? (Originally Posted: 01/27/2010)
For those who once worked at boutiques and successfully jump-shifted to PE firms,
Is it possible to do that? I'm not talking about almost-as-good-as-BB firms such as Lazard, Evercore, Jefferies, etc. Think of other boutiques such as William Blair, Harris Williams, etc.
I would specifically be interested in listening to a story from someone who worked at "healthcare" boutique firm if there're any in this site.
Thanks in advance for the advice!
Jeffries == Lazard and Evercore??...
not all boutiques are created equal, but william blair and harris williams place extremely well into pe, though not megafunds
twilightgirl - thanks for the insight. The firm I'm with is as well-respected as william blair and harris williams so i guess i have a shot to try later.
and yea - i would expect smaller funds vs. mega funds. it makes sense.
CompBanker should be able to pitch in here. I believe he jumped from MM to PE, and if I am not mistaken, his focus was in healthcare.
PE from boutique bank - How and when? (Originally Posted: 08/27/2011)
How and when should I start looking for PE jobs from an IB?
Just started 1st year analyst program at IB.
Should I reach out to the firms or a search firm?
I know that interviews start pretty soon....... Who should I reach out to?
Thanks.
Probably wait until January but never hurts to establish some contacts early, especially at some of the smaller places.
Can reach out to smaller (BB in a good group they'll reach out to you.
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.
Just because you're at a boutique doesn't mean recruiters won't contact you. LAZ, BX, GHL, etc. all get called on by the big search firms.
PE Placement for Top Boutiques (Originally Posted: 03/11/2010)
Given the smalller analyst class sizes at LAZ (~25) and GHL (~10), how well do they place at megafunds? I remember some recent threads about them sending kids to KKR, TPG, and Silverlake. Does LAZ send roughly 6-7 and GHL roughly 3-4 to KKR/Car/BX/Bain/TPG (as well as maybe Apax/Silverlake/Warburg).
At top BB's (GS/MS), I heard 20%-30% of the analyst class go to top funds with most of the opportunities going to the GS TMT/MS M&A ppl (amongst other top groups).
Use the search function, this has been discussed to death.
Better yet, go to some of those firms' websites and find out definitively for yourself instead of through the monkey vine...here are some to get started.
http://www.kkr.com/team/team_pei.cfm
http://www.carlyle.com/Geography/North%20America/item8478.html
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.
That KKR site is outdated as well - it doesn't have all of the 2009 class up.
Boutique to PE: Possible or shooting for the stars? (Originally Posted: 03/10/2013)
I have accepted a FT position from a boutique IB not in NYC. Last summer I did my SA stint at a BB bank that ultimately rescinded my FT offer (got rid of the entire office...). I am going to graduate with a good GPA from a semi-target university, and I think I have done a solid job networking with IB, PE, and a few VC people.
Is it still possible for me to exit to a good PE firm after 2 years? Will my timescale be pushed back by a year? Will recruiters even give me the time of day? What can I do to distinguish myself from the herd of BB analysts that will be flooding the gates of every PE firm in the country about a year from now?
lol UBS SF/LA? What kind of boutique are we talking about?
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?
The search button is your friend
the only boutique -> PE i've seen (on linkedin) were analysts at fairly well known but not necessarily elite boutiques.
I think it's much more common to see boutique -> MM/BB -> PE
Boutique IB - best route to PE? (Originally Posted: 02/07/2014)
Hi All,
I’m currently at a Big 4 in audit in the mid-west. I’ve been at the firm for 3+ years, and I went to a non-target school. Through most of my time at the Big 4, I’ve focused on PE/VC/HF clients. I have been trying to break into IB for about 6 months, mainly through networking, with the end goal being to land at a PE shop one day. I’ve landed several IB analyst interviews and in each one have made it all the way to the last round, only to have the offer given to someone else who has had prior IB experience. However, I recently heard that I got an offer at a small boutique IB firm that I’ve been interviewing at for a while. While I’m very excited to have an offer, I’m also cautious and want to carefully consider my options before accepting. The main reason I’m considering the offer carefully is that the firm is very small, and only operates in several niche industries. I’m pretty sure they have no name recognition at all outside of their select industries. I’m thinking that in order to get to a PE job, I would need to first go to a bigger more well-known bank. That being said, the firm does have consistent deal flow, and as many of the transactions they do are small, I would be able to see a decent volume of deals in a short period of time. I see my options as follows:
Obviously my route to PE will not be easy given where I went to school and where I currently work, but I am determined to get there and confident that I’ll make it happen, one way or the other.
I would very much appreciate any insight or advice on the four options I described above, or any additional ones I may not be thinking of.
Thank you!
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.
What kind of position in TAS? Do you already have both offers?
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).
i'd probably take the bank, then either switch or consider an MBA. "A bird in your hand is better than 2 in the bush." If you don't have that TAS offered secured I wouldn't count on it. (Speaking from Big 4 exp. as well)
Thanks for the input everyone.
The TAS position is on the accounting due diligence side. I already have the offer, but my planned start date is a couple months out (to allow me to complete my audit busy season clients). The firm is strictly an advisory firm, it does not invest out of its balance sheet.
I am in this same situation, except that I am already in TAS. What did you end up deciding to do? And if you chose the boutique IB, how has that worked out?
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?
PE from boutique bank - Only analyst (Originally Posted: 08/28/2012)
Hey everyone,
I've been working at a small investment bank (8 total employees and I'm the only analyst) and I really enjoy the work. However, I'm interested in investing in companies instead of advising them and think it would be interesting to work with the fund's portfolio companies. I have a basic idea about PE recruiting (timelines, process, etc.), but I'm wondering what I should be doing now to set myself up for PE recruiting in the spring of 2013 and 2014.
I'm focused on mm PE firms because I have no illusion about my ability to get a job at a megafund. I'm networking with alumni who work in PE, but I'm wondering about independent work I can be doing as well as how to network with people who I have no connection with.
Thank you in advance for all of the help
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.
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.
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.
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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