Top-Tier PE Offer Straight out of Undergrad
I'm a college senior (top-3 Ivy), and have accepted through fall recruiting an offer at a top-2 BB bank. My goal all along, however, has been to get into PE. Just a couple of weeks ago, a top-tier PE firm (think KKR, TPG etc.) posted a ad on our career services website looking for an analyst to join straight out of undergrad. I obviously replied right away and have an interview with them next week. While there's obviously no guarantee, I'm confident in my chances of receiving an offer (I have a pretty strong resume and work experience, always interview well as I've never lost a job after being given a preliminary interview, and the fact that it's so late in the recruiting process means my competition is probably somewhat limited.)
I have a couple of questions. First, assuming I receive the offer, would it make sense to accept it? While this might seem like a no-brainer, I'd be hesitant to do so given that I've already accepted a banking offer and would therefore be hurting my reputation by rescinding (finance is obviously a small world and my reputation is extremely important to me). Second, I'd be nervous that I wouldn't be given the same responsibilities as would another first-year analyst who entered PE after a 2-year banking stint. I will definitely try to figure out during my interview if I'll be treated exactly like a post-banking analyst or if the role will be slightly different, but it's tough to tell for sure until I'm actually working. Anyway, are my concerns about taking this job warranted? It seems like an unbelievable opportunity (again, think top-5 PE firm hiring straight out of undergrad), and would I be foolish to turn them down based on the concerns listed above? I'm looking for answers from people already working in PE or having at least gone through the recruiting practice. Thanks in advance.





A friend of mine is in a
A friend of mine is in a very similar position. He accepted an offer with GS PWM(not NY), but was recently extended an offer to join the Energy PE group of a BB firm in Houston. He asked for my advice, but I couldn't even begin to advise him....sorry.
I definitely wouldn't worry
I definitely wouldn't worry about turning down your I-bank offer, but I recommend being very careful in establishing what kind of job security and advancement prospects your position will have. There's often a danger in PE that you won't get on to a Principal/Partner track and will thus both miss out on carry and face a real risk of being made redundant in a down turn. This is partly why many people choose to enter PE/VC firms post-MBA or after spending some time in banking.
mba.tuck.dartmouth.edu/pages/clubs/peclub/pdfs/Private_Equity_Careers.pdf
Is a reasonably hlepful resource and expands on what I've been saying.
If you get this offer, and
If you get this offer, and you want to be in PE then it's a no brainer. I wouldn't worry at all about job security or advancement prospects, if it doesn't happen you will be able to find something at another fund, and you might not have to go back for an MBA either. Don't worry about principal/partner track, you're just out of u-grad. This sounds like a great opportunity.
Take it
I would take the PE job if you get it. I don't think you should worry about either of your "concerns"
Finance isn't that small a world, and you are going to be an analyst at a BB, not exactly a position where you are flying on anyone important's radar. I wouldn't worry about your reputation being ruined by rescinding an offer. You are highly replaceable, and you won't be going to a direct competitor, so no one's ego is getting bruised.
You won't be doing exactly the same work as the people with 2-years of banking. Frankly, you don't have the same skills as those people, and it will take you time to acquire those skills. The type of work may be similar (running models, comps, diligence, etc), but you will have less responsibility and be given less scope, due to the fact that you haven't done a lot of these things before. That will change over time and you will be given more responsibility, so this shouldn't be a concern.
Overall, you should take the offer. Who knows if the PE market is going to be this hot in two years' time.
get the offer first. worry
get the offer first. worry later.