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What range of AUM for a PE firm can someone from a MM IBD expect to get into? ex. IBD: Piper, Jefferies, Harris Williams, ect.)

Which MM banks place best into PE?

Also, are MM banks as picky about undergrad target school as BB?

Thanks.

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Comments (31)

  • PiperJaffrayChiang's picture

    Piper > Anywhere u desire

    =========================================
    We are excited to formally extend to you an offer to join Bank of Ameria

  • Well-paid Slave's picture

    I know first hand how HW literally fights on your behalf to place you into MM PE shops. MDs really go to bat for their analysts...

  • In reply to Well-paid Slave
    lookingforanswers's picture

    Well-paid Slave:
    I know first hand how HW literally fights on your behalf to place you into MM PE shops. MDs really go to bat for their analysts...

    I have heard that but it is nice to hear you confirm it.

    By the way, why is everyone so fond of leaving a place like HW for pe?

    Why not stay at the bank and work your way up? Is it that much diff. in pay?

  • PiperJaffrayChiang's picture

    For the most part it's true. It's a top MM PE firm and places well in MM PE. Why wouldn't the firm want their ex analysts to be alums at MM PE firms where they might source their deals???

    I don't like the name cuz it sounds like hair, like hairy balls, but it's a good firm.

    =========================================
    We are excited to formally extend to you an offer to join Bank of Ameria

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  • CaptK's picture

    At my bank (very similar to HW), our analysts have typically gone to firms that ranged from $150mm to $3bn under management (with a few exceptions to much larger marquee names). And yes it may be cliche, but the MDs at middle market banks really do "go to bat" for their analysts. I had senior bankers proactively call on my behalf to PE firms they knew I would be interested in, and they also always gave glowing references. Of course, it's in their interest as well to place you for relationships and deal flow...

    Bottom line, quality MM shops place extremely well into PE (especially MM PE, probably even better than BB analysts).

    - Capt K -
    "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham

  • In reply to CaptK
    lookingforanswers's picture

    CaptK:
    especially MM PE

    What constitues MM PE?
    Less than 10 bn AUM ?

    And is which is best in terms of pay/lifestyle, staying at HW (example) and working up to MD, or going to top MM PE firm and working up ranks there? I just see a lot of focues on PE and not so much on staying in IB?

    Thanks for the responses CaptK and everyone else!

  • FTPiper's picture
  • firefighter's picture

    how much does MM PE pay for an analyst 2 years out of college with 2 yrs of MM IB experience? $150 to $200k (after bonuses) a year reasonable?

  • Andrewr86's picture

    Stephens, Inc. has closed over $101B in M&A since 05, balk what you want about being in AK numbers are strong though, not sure about how their placement in PE compares to Piper or HW.

  • jimbrowngoU's picture

    Pretty sure Stephens has an exceptionally high promote rate...

  • CompBanker's picture

    As a former MM analyst currently in MM PE, I'll throw some thoughts in here:

    Hours: MM PE blows banking away in terms of hours. I worked around the clock at the MM bank I worked at. So many all nighters, almost no time to myself on weekends, pretty much a perpetual state of exhaustion. In MM PE, it is the exact opposite. I work about 50-60 hours a week and I almost always have my weekends to myself.

    Pay: Despite the vast difference in hours, I get my paid more in MM PE than I did in banking. On top of this, my pay is less correlated to the market as we still collect our 2% management fee regardless of what happens. My base is 6 figures so I'm never really going to have a "bad" year.

    Work: Depending on the PE shop you go to, your work is a million times more exciting. I've made a couple posts now about the type of work I do on a day-to-day basis and I love it. I wouldn't go back to banking even if they offered me more $$$.

    People: I've generally found that the people in PE tend to be more intelligent and down to earth than the people in IB. While I learned a lot from my IB mentors as an analyst, I'm very excited to have a hyper-intelligent senior team / mentors that actually take the time to explain things to me and help me to develop.

    As for the comments above relating to Harris Williams and other MM banks: One of the reasons Harris Williams / Edgeview / McColl Partners / etc. have such good PE placement is that they are nearly 100% M&A shops. That means every analyst is executing M&A deals for their entire 2-3 years. MM PE shops care a LOT about M&A experience as they expect you to hit the ground already knowing the process. In addition, MM Analysts typically have much greater deal exposure and responsibilities in the deal process. This experience translates well to MM PE as Associates are given high-levels of responsibility and are expected to be able to operate with very little guidance / oversight from day 1. I was actually pretty shocked during my first month as a PE associate when no one wanted to review my work before I sent it off externally.

    CompBanker

  • In reply to CompBanker
    Mzz's picture

    CompBanker:
    As a former MM analyst currently in MM PE, I'll throw some thoughts in here:

    Hours: MM PE blows banking away in terms of hours. I worked around the clock at the MM bank I worked at. So many all nighters, almost no time to myself on weekends, pretty much a perpetual state of exhaustion. In MM PE, it is the exact opposite. I work about 50-60 hours a week and I almost always have my weekends to myself.

    Pay: Despite the vast difference in hours, I get my paid more in MM PE than I did in banking. On top of this, my pay is less correlated to the market as we still collect our 2% management fee regardless of what happens. My base is 6 figures so I'm never really going to have a "bad" year.

    Work: Depending on the PE shop you go to, your work is a million times more exciting. I've made a couple posts now about the type of work I do on a day-to-day basis and I love it. I wouldn't go back to banking even if they offered me more $$$.

    People: I've generally found that the people in PE tend to be more intelligent and down to earth than the people in IB. While I learned a lot from my IB mentors as an analyst, I'm very excited to have a hyper-intelligent senior team / mentors that actually take the time to explain things to me and help me to develop.

    As for the comments above relating to Harris Williams and other MM banks: One of the reasons Harris Williams / Edgeview / McColl Partners / etc. have such good PE placement is that they are nearly 100% M&A shops. That means every analyst is executing M&A deals for their entire 2-3 years. MM PE shops care a LOT about M&A experience as they expect you to hit the ground already knowing the process. In addition, MM Analysts typically have much greater deal exposure and responsibilities in the deal process. This experience translates well to MM PE as Associates are given high-levels of responsibility and are expected to be able to operate with very little guidance / oversight from day 1. I was actually pretty shocked during my first month as a PE associate when no one wanted to review my work before I sent it off externally.

    Your posts are always great to read, dude. Thanks.

  • macro's picture

    What does post-MBA comp progression look like at MM PE shops? How much of it is carry?

  • CompBanker's picture

    Thanks Mezz & Well-paid Slave. I wouldn't worry too much with the likes of 1styearBanker. I've met a number of people during my career that were of the "BB or bust" mentality. Luckily, I don't cross paths with many while working at MM shops.

    And the silver bananas were much appreciated as well.

    CompBanker

  • CompBanker's picture

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    CompBanker

  • The Phantom's picture
  • In reply to lookingforanswers
    CaptK's picture

    - Capt K -
    "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham