What's the difference between a BB Bank's PE division, and a major PE firm?

Hi, I'm wondering what the difference is between a major PE firm such as KKR, Blackstone, TPG, Carlyle, etc, and the Private Equity division of a bulge bracket bank (such as Goldman Sachs Capital Partners, Morgan Stanley Private Equity)?

Do they do the same things? What's the difference in terms of prestige, size (number of hires per year), competitiveness, compensation, hours, etc?

 
Best Response

Typically (at least at the fund I worked for) the BB PC wings act as "fund of funds" a lot of the time. For instance we had a 20 MM commitment from GSCP, so those kind of groups act as kind of the "source of the river," essentially they are LP's in funds most of the time. I'm sure they have gp's at those groups that invest, but principally put into other private asset classes. GE's private equity ring is the biggest I think, because they committed 87 MM to the fund, I know thats all they do.

Ace all your PE interview questions with the WSO Private Equity Prep Pack: http://www.wallstreetoasis.com/guide/private-equity-interview-prep-questions
 
aworldapart:
"Better" is a relative term -- it really comes down to the individual and the circumstance. There's a lot of factors to consider.
Well broadly speaking in terms of comp, quality of life, ability to move up within the org., typical responsibility level. I'm referring to mega PE funds vs BB PE arm.
 

Et beatae odit minima asperiores necessitatibus officiis libero. Asperiores atque et quaerat eveniet aliquid est esse. Cumque id officiis blanditiis tempore nihil ab officiis.

Aliquam autem iste accusamus illum porro et repellat. Natus labore occaecati tempora quidem optio. Molestias quisquam optio sapiente excepturi facilis. Odit veniam similique tenetur ea aspernatur ipsam consequatur temporibus.

Quia neque eum consectetur sit sint delectus commodi. Ipsa dolore sint sit eum.

--There are stupid questions, so think first.

Career Advancement Opportunities

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Warburg Pincus 99.0%
  • Blackstone Group 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

March 2024 Private Equity

  • Principal (9) $653
  • Director/MD (21) $586
  • Vice President (90) $363
  • 3rd+ Year Associate (88) $280
  • 2nd Year Associate (204) $268
  • 1st Year Associate (385) $229
  • 3rd+ Year Analyst (28) $157
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (245) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (313) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
kanon's picture
kanon
98.9
5
Secyh62's picture
Secyh62
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
GameTheory's picture
GameTheory
98.9
9
bolo up's picture
bolo up
98.8
10
DrApeman's picture
DrApeman
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”