T25 Endowment vs Other paths
Split between a T25 Endowment, a MM IB, and an ER position. I'm curious how the exit opportunities compare and insights into life at an endowment.
QQs: The endowment target timeframe is 2-3yrs in the role until I'd need to find something else. What are opportunities after an endowment? Do they just kick you to the curb?
About me: Don't care about WLB for the next 4 years, have direct investing experience in VC, and, honestly, do see myself as a direct investor in the future, but also recognize that PE/VC is getting more saturated and top seats are hyper competitive so an ER role or MM bank may not give great exits. So, I'm thinking endowment could be an interesting path.
Based on the most helpful WSO content, here's a breakdown of your options and insights into the exit opportunities and life at a T25 endowment compared to MM IB and ER:
T25 Endowment
Exit Opportunities:
Life at an Endowment:
MM Investment Banking (IB)
Exit Opportunities:
Life in MM IB:
Equity Research (ER)
Exit Opportunities:
Life in ER:
Key Considerations for You:
Given your background in VC and interest in direct investing, the endowment path could be an intriguing option if you’re looking for a differentiated experience. However, if your ultimate goal is PE/VC, MM IB remains the most reliable route despite the intense workload.
Sources: A warning to those aiming for Sell Side Equity Research, Breakdown of Post-IB Exit Opportunities, Exit-Ops: Equity Research vs. Investment Banking - (A Definitive Guide, Part 2), A Few Observations on Investment Banking Exit Opportunities, Exit-Ops: Equity Research vs. Investment Banking - (A Definitive Guide, Part 2)
I’ve seen a handful of ex-endowment people end up having to get an MBA first after 2-4 years in in order to pivot into another role. Not saying an MBA is absolutely needed, but I did see a lot of people go through this pipeline. A lot of them ended up at an OCIO type team at places like Blackstone or the BBs. Some were able to break into hedge funds. I don’t think any were able to successfully break into PE, the closest I saw was someone going a GP alts fund like Blue Owl but it was mostly an IR role.
VC honestly sounds more fun though, and it’s nearly impossible to break into post grad school. If you have an opportunity to go into it straight out of undergrad, I would really consider it. It only gets progressively harder to break into that industry as time passes (unless you joined a successful startup or have really niche technical expertise).
I worked at an endowment pre-MBA with a similar setup to what you described. I went to a top b school and have since worked in PE and PC. Endowments are dope. I would go back for sure. A lot have pre-MBA programs cause senior seats don’t often turn over. Endowments and foundations are the end buyer (buyside of the buyside). It’s nice having just one client (university). You could think of endowment as king makers not the kings. You can do very well at an endowment, especially at top endowments with $1bn+, but you won’t get filthy rich like you can at a hedge fund (but are you going to be that guy who hits it at a hedge fund anyways?).
ER if you want to make a go at HF/AM. But I’d be a little nervous about ER outlook. Otherwise endowments are sweet and I’m sure they’d help you link up with another endowment, foundation, or family office when your time is up
Amazing - I appreciate the insight. How difficult would you say it was to recruit into both b school and especially transitioning to PE/PC post-endowment? Do you ever think you'll go back to an allocator role/would you have stayed in the role had there been a spot?
ER is not really where I want to be. Currently between early stage/growth stage venture at unknown firms with below market comp vs endowment. I think endowment sounds most interesting and its true that b school is always an option.
Thanks for sharing this, very helpful. I find endowments really interesting and am targeting those as well - would love to connect. Would you be willing to chat further via DMs here?
Endowment at the junior level has horrible comp (share what they offered if I'm wrong)...not worth it if going to have to pay for an MBA afterward too. IB will be the worst work of the three but will give you the most options afters 2 years and you don't have to worry about an MBA unless you really want it
Analyst pay for me was around $130k all in and first year associate pay was $170k, second year post bonus should be $190-200k. Firm is a T25 endowment not based in NYC/CHI/LA/SF.
That is unreal
Et odio libero velit incidunt molestiae. Adipisci earum nemo in eum tempore in. Et deserunt veniam adipisci.
Nihil quia repellat numquam cumque quam porro et. Ullam tempora cumque possimus tenetur. Voluptas quaerat voluptas quia nostrum fuga est. Et voluptatibus expedita tenetur est.
Ipsa est doloribus vitae molestiae in nemo voluptas. Voluptas sequi laudantium id labore in. Odio rerum et enim et aperiam inventore. Vel dicta omnis recusandae magnam.
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...