I'm trying to get thoughts from people that have gone through lateralling or PE recruiting on the best route to take for my current situation.
I'm at a no-name boutique. About 35 people and we do about 1 deal a month usually in the 10-50mm range. The seniors are all top guys that were heads of BB banks in the past or executives at F500 companies.
I did have an internship at a relatively top MM bank (think William Blair, Piper, Stifel, Houlihan M&A) and received a full-time offer, but I turned it down for this current position since I hated the industry group I was in. I don't know if this experience on my resume will help at all for recruiting.
.
Anyways, I am considering going through recruiting for PE, but I understand that it will be tough given the firm I am at and even if I do get an offer, it will probably be at some tiny 5 man shop. The other option I was considering is that wait to try and lateral to a EB or BB bank next year and recruit then. I could try both at the same time, but I don't know if recruiting for PE now and failing will hurt my chances in the future
Lateral to a BB and then wait some and go for PE
Thanks. I assume you were at a BB? Did you see to any laterals from no-name boutiques into your firm?
I was at a no-name boutique.
We have an analyst program in my firm, they usually hire grads but from time to time they take people with some experience who come even from no-names. At the associate level it is different, they only take people with BB or EB experience or MBA grads from top schools.
I would highly consider you lateraling to a BB or EB. PE recruiting probably isn't going to work out very well for you (not saying it's impossible, but your chances of landing in a good spot is not great).
Also, your MM internship most likely will not do anything positive for you. If anything, it'll raise the question of, "why did this guy move from XYZ to a no-name firm? Did he not get an offer?" And since it was only an internship, it really doesn't carry that much weight.
Hey thanks for your input. Yeah I understand it will definitely raise that question, but please let me know if my other comment is a sufficient answer. I know these things are sometimes tricky to spin and explain.
I think your explanation can be sufficient, but what if they ask you why you went from a name brand MM to a no-name boutique? Were you unable to land anywhere else?
Even if you can spin it, I think it's just 100% more beneficial for you to lateral to a BB or EB. Not only will you gain the necessary experience and branding, you get access to so many more resources. An alumni network of former bankers from your firm, and not to mention having headhunters and recruiters pour into your inbox.
Is there another reason as to why you declined an offer from a good firm and downgraded to a tiny boutique other than not liking your industry group? It seems really doubtful for some reason, especially since you had PE in your sights and most likely knew that a better name would bolster your resume.
Honestly I had no intention of doing PE at first. I thought it was an over-saturated market and thought it was basically the same thing as banking.
The other reasons I took this offer was: - I work 9-6 - attractive comp structure - It was apparent that I was going to come in as a rockstar and crush it - I initially planned on doing a couple years of banking and starting my own business or doing something non-finance related - the industry group before was FIG, so whatever I learned there would essentially go to waste unless I do FIG pe or Fig hf
But after working with a lot of PE firms over the past couple months, I realized it is totally different from banking and I love the amount of thought and detail that goes into finding investment candidates.
In a top group that had two laterals at the end of their first year from different banks (one boutique and one worse BB) - both did PE recruiting their second year and got multiple megafund interviews
I've spoken with both about the differences in recruiting their first years at lower-level groups vs. recruiting their second years, and they both said the differences coming out of a better group were massive
Take that for what you will
Interested in this as well, as someone at a run-of-the-mill MM shop who has come to the harsh reality that even as a 2nd year, PE firms and recruiters just don't give us the time of day compared to some kids who got a bit luckier/tried a bit harder in undergrad. Harsh truth, but looking to make some changes. About a year and 4 months into my gig, have seen maybe 2 lateral opps cross my desk....considering biting the bullet and waiting for some opening in the new year. 3 years of banking for the possibility of better exits/MBA seems like a fair trade.
Sorry to bump, but @Evianstone, why couldn't you have done both? What I mean is if you join the firm full-time in July/Aug (after undergrad), and if PE recruiting occurs in Jan/Feb, why couldn't you have attempted PE recruiting then, and if you don't get anything, lateral after a year (so in July/Aug after 1 year).
Does it look bad to go through the PE process twice?
Dolorum odio laborum aut. Sapiente consequatur doloribus impedit cumque quo.
Sequi est voluptas esse fugit. Quasi cum eos itaque impedit odio illo provident. Tenetur cumque sunt quia in consectetur quis nostrum. Facere sit molestiae ex ut totam sunt eius.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...