Small PE shop or b-school first?

I'm a 3rd year at a top-tier boutique management consulting firm and am contemplating doing a pre-MBA associate stint at a PE firm. Problem is that my background is not M/B/B and it's tough to get into a top-tier PE firm.

Currently I'm looking at smaller funds ($500mm-$1bn) that may not have a lot of prestige, but offer the opportunity to be involved with every step of the investment process.

Would this be a step up from a boutique MC gig in terms of getting into B-School and PE/VC potentially after school? My firm already places fairly consistently into H/S/W. Will I lose that advantage at a no-name shop or does the experience speak for itself?

 

If you don't get in now you are going to have one heck of a time finding a position during bschool. There are too many MBAs with PE experience and they get first shot at almost everything. Prestige isn't as important at this stage - just get in!

 

Absolutely take the PE job now rather than trying to break in after school along with all the other thousands of MBAs trying to get an invite to the PE party.

By the way, there's nothing wrong with a $500M-$1B fund. There are lots of good firms out there in that range. And guess what, a lot of today's big firms had funds less than $1B only a few years ago. Not everybody can work at KKR. And not everybody wants to either.

 

hi all, i posted this in another thread before, but what type of characteristics might you look for when comparing one mid-market shop to another, and how do you measure the true quality of these firms? i don't get the sense that rankings for MM PE shops are as transparent as BB banks and mega LBO shops, so any insights you guys could provide would be greatly appreciated.

​* http://www.linkedin.com/in/numicareerconsulting
 

Im not so sure PE will have the same attention from b-school graduates in 3 years that it has currently (i.e. late 90's tech start-ups). I would take the PE experience only if you think it contributes to your b-school story and strengthens your app. No reason to put off 2 more years if you can get into a top program now. Shit in two years you may have 6 kids and a wife. Not sure of your background but a lot of B-schools (other than Wharton) like young candidates.

 

Have you done PE before? I would think that if you've already done PE, it's easier to get a slot when going through MBA recruiting. In any case, the MBA could be helpful in the long term in PE where you have to leverage a network.

"Even if you're on the right track, you'll get run over if you just sit there" - Will Rogers
 

It's a 2 year track. On one hand, with the MBA, I have a chance to rebrand myself, gain a strong network, and have a stronger pedigree (better for the long-term). On the other hand, with PE, I have an opportunity to break into an industry I may not get again. So that's why this is not an easy decision.

 
Best Response

Take the PE role.

If you got into a top 10-15 school now, you're not going to get into a worse school two years down the road with better work experience under your belt. Schools in that range aren't going to scrutinize you more unkindly for being older the same way H/S/W would. Even at those schools, your additional experience would probably net out positive for you since PE is a competitive industry.

On top of all that, if you want to work in PE at any point down the road, it's essentially mandatory to get into your first PE role as soon as possible. It's a game of musical chairs; there are fewer seats the farther along you go.

Take the role, work hard and learn a lot, and in 18 months revisit the idea of b-school. If your GMAT was below 720, consider retaking. If you could get >750 and secure strong recommendations from your seniors at work, you have a really solid shot at getting into an MBA business schools">M7 program. From there you can sell your story for a post-MBA PE role much, much better than you could without pursuing this path I've outlined.

Good luck.

I am permanently behind on PMs, it's not personal.
 
AnthonyD1982:
Depends on how much you hate banking.

The sponsored "two years and come back" model is more prevalent in big-name management consulting than investment banking.

To the OP: if you are genuinely interested in private equity, I would ditch the free MBA and get the PE experience. You will make so much money that it will cease to be a concern, you will still have excellent MBA prospects, and your post-MBA opportunities will be better.

The truth is you're the weak. And I'm the tyranny of evil men. But I'm tryin', Ringo. I'm tryin' real hard to be the shepherd.
 

sry can't really help you ( i guess it's gonna come down to your preferences anyway). two questions tho:

1) how common is it for banks to offer a free mba? i think for MBB it's pretty common right? 2) for how long will you have to work for the bank?

 

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