Value of MBA (2nd Tier) + CFA in PE Industry

In my opinion, no value whatsoever. CFA is decent if you're looking to get into equity research and institutional buyside (mutual funds, etc.). The only advantage a CFA could give you towards PE or VC is to show you have an interest in finance and can handle technical financial problems and valuation. But you already have an MBA, so that's not necessary.

Just take a look at bios for team members in PE. Barely anyone has their CFA.

I also think the MS is a bad idea. If you don't have a pre-MBA banking background, my advice would be to get into banking as an associate then move to PE from there, or get work experience in a field that interest you related to VC, and then jump to VC as an experienced professional in about 5-10 years.

for an MBA you seem pretty uneducated about VC. It doesn't look for financial whiz kids, you need a tech background, entrepreneur experience etc.

for PE, CFA/MS is useless. Unless you are a networking goddess the train has long left the station and you have no chance because of the 2nd tier MBA and no background, even in this red hot job environment.

btw what job are you at now?

Hi,

Well, first of all, thanks for sharing your experience. It gave good insight for sure.

Well, however, this is an interesting thing to know that there is no use of CFA degree for getting into PE/VC, even indirectly !! Well, as far as bios of VCs are concerned, for sure, many of them have tech background and/or some entrepreneurial consulting background. However, after looking at good bunch of profile of VCs only, I thought of CFA. Many of them had CFA. (they might have used that to get into Goldman ..as Goldman, for sure, hires a lot of CFAs !!).

I do know that some tech background and/or some entrepreneurial background required !! However, I have seen people getting into this with vertical Finance experience too. Till now, I am not able to leverage my Tech degree and/or experience. Could be because of lack of long-experience !! I have an undergrad in Technology and my current job is with Rolls Royce - I am SAP - Finance & Controlling - Tech Senior Consultant !!

As GameTheory mentioned, I-Banking route could be a good one and in fact, in that regard, only, I was considering for CFA. Whether CFA will help me for getting into some top-banks as an associate with my Second-Tier MBA. And then, after working getting some financial restructuring experience, probably if I can make shift to VC.

Hi,

Well, first of all, thanks for sharing your experience. It gave good insight for sure.

Well, however, this is an interesting thing to know that there is no use of CFA degree for getting into PE/VC, even indirectly !! Well, as far as bios of VCs are concerned, for sure, many of them have tech background and/or some entrepreneurial consulting background. However, after looking at good bunch of profile of VCs only, I thought of CFA. Many of them had CFA. (they might have used that to get into Goldman ..as Goldman, for sure, hires a lot of CFAs !!).

I do know that some tech background and/or some entrepreneurial background required !! However, I have seen people getting into this with vertical Finance experience too. Till now, I am not able to leverage my Tech degree and/or experience. Could be because of lack of long-experience !! I have an undergrad in Technology and my current job is with Rolls Royce - I am SAP - Finance & Controlling - Tech Senior Consultant !!

As GameTheory mentioned, I-Banking route could be a good one and in fact, in that regard, only, I was considering for CFA. Whether CFA will help me for getting into some top-banks as an associate with my Second-Tier MBA. And then, after working getting some financial restructuring experience, probably if I can make shift to VC. However, that looks a long-route !!

I don't know where you get the impression that GS hires a substantial amount of CFA's. I really don't see a correlation between CFA holders and increased hiring by GS for associate IBD roles.

Nope. Not lot !! Well, for sure, their hiring preference is MBA. However, there are good number of CFAs too. Checking CFA Institute Website will give a good idea about it, that GS hires CFAs. Not only GS, Meriyll Linch and JPM, too !!

Yes, however, I am not sure if they are for associate role or any other corporate finance role. However, GS Corp. Finance experience too, seems to be important in VC circle. I am not sure, but perspective from you, will surely give some idea !!

I didn't check the website but if it doesn't delineate between corporate finance or research I am almost positive most CFA's enter into things like research, and not IBD.

As I'm sure you know your chances of entering PE without pre-MBA banking or consulting experience, no pre-MBA PE experience, no top tier MBA, makes it extremely difficult to enter into PE at this point. That said, if you can score a job at a good investment bank doing something like tech or healthcare, or even energy you may have a chance at a focused VC fund. If you do something like M&A or Leveraged Finance you will fair better towards PE.

A top tier consulting job may offer similar options but not as reliably as IB. And, like I said before, extremely difficult given your lack of experience. But if that is what you know you want to do, by all means go for it.

Thanks "GameTheory" .. Got a good insight !!

You need to wait another 10 to 15 years if you can't get into PE post-MBA. Go out and get some real operational experience managing a business and then try to hit PE firms from that angle.

Spending a 2 or 3 years as an Associate after MBA is an extremely low percentage path. There are fewer PE jobs at that level. And the competition is pretty much every Associate out there thinking the same thing.

Add to that the fact that an i-banking Associate is bringing very few skills to a PE fund that a cheaper, pre-MBA analyst doesn't have.

I would advise you to find a meaningful operational role, see how that goes and then try to make the transition as someone with a real, unique skillset.

isn't CFA level one the real easy one where one doesn't even really have to study to pass? I heard only level three indicates any real separation in knowledge from the masses...

No, CFA Level One is the hardest (lowest pass rate, something like 30%). Level Three has the highest pass rate.

maybe it's because all the dropouts were already screened out at level one and two. therefore, those who are left and going for level three are naturally more likely to pass.

Level I is the easiest level - just weeds out those who arent dedicated. Saying that its really easy and not having to study however is a bit of an exaggeration.

Level II is most difficult based on large amounts of accounting

Level III is gaining rep of becoming more difficult that is has been in the past - has high passing rate because candidates can finally see the light after passing level II.

Value of the CFA?

Shows the I-Banks that you're a real keener for Finance. That's what a guy at GS said during our info session. Is it practically useful? Maybe more so in Asset Management later on but they like you if you're doing it while in your last year undergrad or during your MBA.

To them its an example of multitasking, time management, dedication and hard work. What more do they want from prospective monkeys? Whether you're in IBD, ECM, DCM, Research...its the character/personality test that will win over the interviewer. The CFA is an extra chip.

Any undergrad with an economics or business degree can pass Level 1 with 3 to 4 weeks of hard part-time studying.