IB to HF instead of typical 2+2
Curious how people who chose to leave top tier IB for HF felt about the decision years later - as opposed to peers who may have gone the more typical 2+2 PE path and then to HF.
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bump
huge bump
what's the purpose of the PE stint?
opportunity set?
just generally interested in hearing abt ppls experiences
Oh I thought there was a specific reason people to do it for HF rather than a general opportunity set. I'm not too well versed in IB vs IB + PE opportunities tbh.
I can't imagine there's a point to doing 2+2 for MM's though? Grinding through 4 years of process work to be behind someone who started at a pod out of school so I'm guessing its for SM's?
PE to me felt like the same work as banking. Public markets was way more my style. Why waste two years doing work similar to banking that you already know you’re not a fan of?
Bump, am in banking FT now and have done a PE and HF internship before. I guess aside from managing time/processes better/getting shit done with time to spare, I don't see much that IB value adds to a buy-side ER career fr.
I did 2+2 and found value in this career path. Banking teaches you technical skills, communication, professionalism, maturity, and ability to work under pressure. I would have flopped in a HF job right out of undergrad and I definitely did not have any opportunities to go to the buy side from my non-target school. Private equity takes those skills you learned from banking and you now actually learn how to invest, understand how business decisions are made, how diligence businesses and review data, assess management, modeling, etc. So within 4 years of graduating college, you’ve quickly become an extremely developed professional hence why many HFs prefer this background when hiring, and I found Headhunters to be more receptive and give me the opportunities I wanted once I was in PE. Also met many people along the way with a now pretty well branded resume.
For MM funds, this type of background is probably less important as they train you themselves and have a very specific strategy. But for SM funds, you’re hiring someone who has been through the wringer and they can’t afford to make hiring mistakes when teams are so small, need to protect fund IP, frequency of hiring, etc.
And to provide another perspective on PE that I feel many people on WSO do not acknowledge - PE is the closest you will get to true business ownership unless you own your own private business. And in that case, you wouldn’t be on this forum or working for someone. There is tremendous value in this experience; similar to how Buffett says he’s competitively advantaged from a data and information perspective because he has so many businesses under his umbrella and this information accumulates overtime. We were constantly getting feedback and information from all of our PortCos and we’re pretty plugged in. Yes the deal side of PE sucks and why many people leave, but if you actually think about it, you are the literal owner of XX amount of companies that you can fully influence and get to see real time how businesses actually function from the inside. Go look up “Steve Jobs on Consulting” on YouTube and you’ll get what I mean. Some of my PE peers just went through the motions and never fully appreciated the private investing experience; they’re the ones who were at culturally bad firms and labeled PE as banking 2.0.
Ignore title, currently on yr 3 at a SM HF. For most SMs, they'll want you to have some PE experience. IB might give you some coverage/industry knowledge, but you need experience as an actual principal investor, even if you're just a deal monkey at the end of the day. It's partly because that prepares you better for the HF role, being able to actually analyze companies and research investments, but also just as a pedigree/resume thing.
I did not do 2+2. Loving life and crushing it atm.
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