Going straight to PE vs IB first
Undergrad junior with an opportunity to join a UMM firm (5-15B) FT but also considering FT BB IB. Having a tough time with this decision so hoping to get the monkey consensus. Let's assume I have an offer at each. Pros of PE would be that it's PE lol, and faster promotion track, but I'm concerned about missing out on IB training, probably better pay in IB, and would prefer a more general experience rather than diving into the select industries my firm likes (plus potential to move to better PE firm post-IB). Thoughts? Would like to do PE in the long term.
Bump
Jumping straight to PE is a better use of your time intellectually, but IB is a better use of your time developing the fundamentals - working under pressure, excel, modeling, etc. If your fundamentals are strong and you learn quickly, you could probably go straight to PE and be better off. It’s actually very hard to jump to PE from IB and people don’t realize that fact. If the chance is in front of you, maybe take it now, but realize you’ll be far behind the fundamentals than an IB analyst straight out of the furnace.
Appreciate the response. I’m a quick learner but can’t help but think I’ll get fomo without the traditional banking training. That said, I really enjoy investing and I know this is a rare opp which is why it’s difficult
Wait, it's difficult to jump to PE from IB? Don't the bulk of analysts from BBs and many EBs do it every year?
Yeah, to shitty 5 man shops. The bulk of analysts don’t jump to UMM/MF. There just aren’t that many spots to go around
That poster is still in school. It’s not difficult. Every person I know who was serious about PE recruiting got an offer to either a MF or UMM. Usually it was 25% MF and 75% UMM. This is from GS/MS.
I’m sorry, but jumping from IB to PE is not at all difficult. Not sure what bank you’re at. From GS/MS (I imagine it’s the same for EBs), there is a spot for every person that wants one and is willing to put in the effort. Almost everyone who did PE recruiting ended up at a MF or UMM. MF might be difficult to get, but UMM is very attainable. If OP has an offer to top BB, it won’t be difficult to end up at a similar or better PE shop after two years. It’ll just be a more tedious path to a similar destination.
Agreed with this with a small exception to tediousness. If you have an offer at a top group that supports buy-side recruiting, may be easier than trying to hop out of a PE firm that may not be so welcoming to it
I think it’s also really dependent on the type of PE analyst program.
Even at some really strong PE funds, the analyst program is just sourcing/cold calling and you aren’t getting good quantitative training at all (interviewed at one shop for an analyst role and they said I wouldn’t touch excel as an analyst). At these types of places, lots of analysts aren’t promoted because outside associate hires from IB are just better prepared. At others you are way more involved as an analyst, get great training, and lots end up as associates. Definitely do some digging on the history of analysts
Is it a buyout fund or growth equity?
Mostly buyout but have heard they look at later stage growth companies too
OP here, the firm has analysts modeling and doing what might be associate work at other shops (DD, active member of deal teams etc.). This is great, but there’s not a robust training program from what I’ve heard, which is why I’m still thinking of IB. I’m not afraid to learn in the deep end out of school (and quite confident I can tbh) but long term I wonder if it has the same marketability etc. as having gone through analyst years at a BB. I’d eventually like to join a larger / better shop one day (the ones in mind mostly recruit from IB) and have no idea about PE lateraling.
Are there historical analysts that you can look at? That’s the best data point. Are they still at the fund, are MFs, or at smaller funds? That’s the best indication of this program. I’d even reach out to former analysts from there who left for an unbiased take.
I’d be skeptical with no training program, especially if you’re looking to exit. If you’re goal is to go to a bigger PE fund, look at the bios of associates there. The vast majority will be from IB, maybe a few consultants. I haven’t met anyone at a MF who came from a PE analyst program, but they may exist.
If you’re goal is to be at this fund forever that’s a different story (and I think makes the analyst program way more appealing).
Also totally depends what IB you’re comparing to. At GS? Your odds of an => PE firm are probably pretty good. At Cowen? Probably not, but once again do some digging on analyst exits
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