Delay Graduation to Recruit IB or Graduate Early and go FT MBB
Hi all, I'm a rising junior at a target and my goal is now the classic PE/VC possibly hedge fund route. Since I'll have finished my degree requirements after next semester, I'm tempted to recruit full-time for MBB and just start my career. (so start date 2023) This way I could start recruiting PE roles sooner and maybe lateral/recruit IB (idk if this is possible, but would be interested if so).
The other option is to delay graduation and recruit for IB roles next cycle. I'm still actively recruiting for summer 2023 but don't expect too much success as I was pretty late to the game (originally planned to do consulting/tech). This option would mean recruiting for summer 2024 and starting FT in fall 2025.
I'm wondering what option gives the best EV for buy-side recruitment? I'm conflicted because on one hand I'd think 2 years of MBB experience (and maybe two extra years of buy-side recruitment) would be beneficial but on the other IB seems like a more clear cut path. However, I'm hesitant if a 2-year delay is worth it.
Thanks!
Note: I only assumed MBB, because in order to decide whether it'd even be worth recruiting it, I have to make the assumption that I do. Only planning to go for MBB.
Just stay with your original grad year and try for IB.
If you go MBB -> IB plus also graduated way ahead of when your class is (i.e. recruiting PE with class of 2025, but you graduated in 2023)... you really become a non-traditional buyside candidate and that's not a good thing. Also even if you stay at an analyst title for recruiting, with 2 years work experience already they will ask why you waited so long, why aren't you an associate, etc. Just more of a negative than a positive. It's one thing for the guys that start out at tiny boutiques and maybe take a year or two to claw their way up to a top group, but people will look at you sideways if you go this path you're describing.
MBB also does not recruit nearly as well as IB. If you strike out once in on-cycle recruiting, you can't really do it again - dropping out/skipping oncycle and going the next year is one thing, but if you choose to do oncycle and strike out you can't do it again the next year. So you only have one real shot and your best chance will be from IB.
I also considered graduating early in my day but it really is a net negative for IB and PE recruiting. I get your idea but in practicality you want your path to buyside recruiting to be very traditional (i.e. graduate college and start with your class, not start lateraling around from MBB to IB)
Thanks for the comment really helpful. The only thing I'm wondering though is do you think recruiting to top IB would be easier from no-name boutique or from MBB? Or just not worth the MBB route bc of the narrative issue.
Lateraling will be smoother from a boutique given you'd know IB skillset (vs. ppt-heavy, Excel-light MBB skillset), although really unlikely you'd land a top group. Even in the hot market of 2021 it was kind of unusual to see a handful of total no name boutique analysts slip into mid-tier groups.
MBB is fine if you want to graduate early, see if you can land PE, and go from there. I wouldn't lateral to IB if you're trying to immediately pivot and recruit for PE, you will be way behind your class in modeling, talking about deals, etc... you'll realistically end up lateraling at year 1, sitting out a year learning IB, and then suddenly you're a third year trying to scrape an exit together.
MBB isn't really a huge recruiting minus, there are consultant-friendly shops out there... you can just skip IB and recruit from there. The main problem with your plan was trying to go through recruiting multiple times, having 2 years of experience before oncycle, etc. If you want to get going with your career MBB is a totally fine way to do it.
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