Endowment Investing Role vs BB Investment Banking for HF Placement?
I am currently a junior in college and have already accepted an offer for a 2025 Summer Analyst Program at a BB investment bank (JPM, BofA, MS, etc). I just went through the group placement process (coverage group vs M&A vs FSG, etc.), and throughout was gunning for the M&A group, as that seems the most modeling-centric and thus HF applicable. However, I am unsure of my odds of being placed there because 1) I objectively did a poor job of networking, as I was unaware of how formal the placement process was & 2) The connections I did make were with very senior people in the group.
In any case, I was recently offered an internship opportunity at a notable endowment that manages 3-5bn, which carries with it the potential for a full-time role. I did not apply or ask, I was offered it by a professor after class this week.
Given the above, I am curious as to which path is more applicable to a role at a HF, as my current long(ish) term goal is to work at an L/S or macro fund. As mentioned, my assumption is that M&A is best, but I am also entirely unsure. Also, if the endowment role is a better fit for a HF exit, how significant an offense would it be to bail on my already accepted offer?
Would love to hear thoughts from any who have a perspective. Thanks.
No (B)Brainer.
(ignore tag)
I agree with the other commenter on BB all things equal/you don't have further info.
but as someone who experienced both IB and HF and knoq of people from endowment investment backgrounds - Sidetracking to talk about endowments your xxx pension fund etc. While it's larger and sometimes it's more capital allocating, as a smaller fund even if you make direct investments for both private and public eqs, the fund size is technically still relatively small to support best-in-class infra like your MMHFs, or have sizable/good investment teams to learn from. IB builds you for MMHF (or MF PE if you want those SM/Tiger Cubs) much better, especially as the banks you mention seem p good (BofA I presume, a bit out of touch now but but M&A is decent IINM)
Fundamentally as a junior looking to lateral (Im thinking from a MMHF perspective as that's more in line with what I know), the PMs just want a modelling monkey that can think for themselves. While endowment investment is technically buy-side straight away, the reps and ability to flex your investing muscles may not be there. Idk about yours, but most of those I know of/have contact with tend to be relatively sleepy... Good place to retire/take it easy, but may not be good learning.
Now, something that will change my mind would be that if you wanna do L/S, the endowment fund runs that strategy (unlikely ngl) and they have a star PM that is ex-Citadel or whatever and the learning is great (even more unlikely) then I think I would go with that.
But if you can't find out more and with all things equal, I think BB is just a general much safer option (and likely pays much better too).
Oh and the above is from a fundamental investing POV, your profile just generally doesn't suit a macro HF per se. They are looking more for a more STEM/quant kind of person or the S&T background - out of my expertise/you gotta do more research on that.
TLDR: BB IB safer, endowment only if good team/learning/exposure in the specific area u wanna do.
Ever see people from the Canadian pensions? i.e. CPP / OMERS / PSP where they have more direct investing teams as well?
Yes, but my friends are from OTPP/CDPQ/OMERS which are the larger pensions and they have their own direct investing teams. Of course, the experience there in a direct investment role will definitely be different and more applicable. But very different from the 3-5bn endowment fund type which OP is talking about, which likely is more of on capital allocation than direct investing.
BB IB but caveat endowment helps later on if you want to launch own fund because of network
Endowments can be a great spot. The thing to keep in mind is that it’s indirect / LP investing / capital allocation. Moving from that type of seat to a direct investing (PE / HF) is much much harder than doing the reverse. So if you’re set on going into a HF, go into IB. If you’re set on working at an endowment, foundation, family office, go to the endowment.
Ask your professor to connect with the endowment folks and try to work there during your senior year as part-time/intern. Make good relationships. Maybe after your banking stint you can go there instead of PE or maybe you just don’t like banking and leave after 1 year to endowment. Many ways to play it but the very least you can do is build the relationship with those folks.
I work at an endowment fund and would strongly discourage you from taking this job if you have an IB offer and your end goal is HF. We do not model at ALL. It is possible to move to HF from endowment but these are rare cases with more tenured people who had connections. It is a much less straightforward path to HF compared to IB.
Et possimus dolores qui quis assumenda. Qui dolor at repellat voluptatem commodi vel. Commodi repellendus eum voluptatem optio.
Unde voluptatum non dicta in. Est quia eos ut minus est occaecati et. Reiciendis et sint exercitationem nostrum. Consequatur porro eos iste.
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...