How Different is PE??
Basically I am having a really tough time in banking as I am pretty bad at formatting / PPT slide creation and that is such a big part of the job. Looking to make the jump to PE and wondering how much of the day to day is working in PPT and making little formatting adjustments vs modeling / business diligence. For reference looking to go MM and not MF.
Based on the insights from Wall Street Oasis, Private Equity (PE) roles can indeed differ significantly from Investment Banking, particularly in terms of day-to-day tasks like PPT slide creation and formatting. In PE, especially at the middle-market (MM) level, the focus tends to shift more towards evaluating opportunities, portfolio management, and deeper business diligence. Here’s a breakdown of what you might expect:
Modeling and Evaluations: Much of your time in PE will be spent on financial modeling, including LBO models, rather than on creating PowerPoint presentations. This involves analyzing the financial viability of potential investments and understanding the intricacies of the businesses you are looking at.
Business Diligence: This includes market analysis, competitive dynamics, customer analysis, and occasionally vendor due diligence. It's more about understanding the market and the position of the company within that market, which is crucial for making informed investment decisions.
Portfolio Management: In PE, especially after an investment has been made, there's a significant amount of time spent on managing and optimizing the performance of portfolio companies. This might involve strategic discussions with company management, performance analysis, and planning for exits.
Less Emphasis on Presentation Formatting: While presentations are still part of the job, especially when communicating investment theses to committees or potential investors, the focus is less on the aesthetic formatting of slides and more on the content's accuracy and depth.
Interaction with Management Teams: You'll likely spend more time interacting directly with the management teams of portfolio companies, discussing strategic initiatives and performance improvements.
If you find the heavy focus on PowerPoint and formatting in banking to be challenging, PE might offer a more engaging and suitable role, focusing more on analytical and strategic aspects of finance. However, it's important to note that while the shift from formatting to more substantive financial analysis might be appealing, PE still involves its share of presentations and document preparations, albeit with a different focus.
Sources: Let's be honest about PE, https://www.wallstreetoasis.com/forum/investment-banking/breaking-into-private-equity-from-banking?customgpt=1, Do you consider your Private Equity job intellectually stimulating?, Actual work and down time of consulting vs IBD, Private Equity vs Consulting?
It's both. Probably more variance at MM level. The hard part is the "business/commercial DD" analysis skills are more or less entirely new so will need to be developed and that is way harder than controlling formatting.
Define "bad." Is it moreso that you don't feel creative re: page design or are you making mistakes / find minor edits/feedback tedious?
I guess a little bit of both but more so the latter. I have tiny stupid mistakes across pages and hate going through and making all the tiny formatting changes.
I don't wanna take MS but gonna try to be pretty honest. (i) Positive side - you'll improve at the job (IB/PE) over time and mistakes will be fewer which ideally make the job more enjoyable, (ii) Negative side - no matter how strong of a PE associate you are, a meaningful portion of the job is turning comments (whether it's mistakes or just minor changes) to PPT slides, email drafts, Excel models, etc., so if this isn't your 'cup of tea,' I'd caution that it's really never going to go away
My perspective at a brand name UMM fund: The job is objectively a lot harder than banking but it’s also far more interesting and intellectually stimulating. You are held to much higher standards and are responsible for driving things from point a to point b with a lot less supervision but under very tight timelines. If you screw something up, it is more likely to have real world impact (eg: funds flow).
I learned 1000x more in 2 years in PE about finance and business models broadly than I did in banking. My public speaking, project management, and professional confidence was forced to grow when I was expected to drive work streams forward independently. My colleagues were generally significantly more intelligent, competent, and articulate. They were also a lot more politically correct and presentable but make no mistake none of them gave a singular fuck about anyone but themselves and they were not invested in my career, happiness, or longevity at all. Everyone is abundantly aware that you are completely disposable and perfectly replaceable labor and they will hire your replacement 1.5-2 years in advance during oncycle recruiting.
The stress of PE was far worse and weirdly was far more destructive to my personal life than banking was. There were 0 boundaries (including for PTO unlike in IB where you can get another analyst to cover for you), it’s a lot less social (no one really cares about happy hours or team events), and there is no pretense of them caring about retaining you beyond your 2 years. It’s a purely transactional arrangement where they lease your labor for 2 years and they feel 0 need to invest in you or help you find your next job. It’s only worth doing if you are genuinely intellectually curious about the job and learning to be an investor and learn business models, because if you’re not it’s going to be very hard for you to justify how you’re treated and why you’re trading more years of your youth and happiness for this job.
Do you plan to stay?
This is not a universal experience. Source: MF.
.
I also share the same experience
Imagine hard to say with certainty, but have to wonder if this is a function of being an associate at a 2-and-out type firm vs. one that promotes internal upward mobility
Rerum quidem quisquam et qui debitis. Vel consequatur pariatur atque incidunt repellat quae ut. Dicta distinctio aperiam qui vel amet enim.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...