Internship Choices (PE vs IB)
I am currently a sophomore at a target school and have the option of spending this upcoming summer interning at a MM PE fund (around $5 billion AUM) vs interning at a small no name boutique IB. I am looking to lock in a SA position at a BB IB this upcoming fall but eventually planning on pivoting out to PE. Which internship would set me up better for IB recruiting next fall?
Good question that has never been discussed before
Would you leave IB for an internship in PE? (Originally Posted: 04/15/2011)
I am now on secondment at my top-tier bank’s PE fund from its IB division (after only about 1 year at the job). Life is significantly better here. Both the work itself and the relations between colleagues are a very nice change from the never-ending stream of formatting pitch books in IB. I’ve talked to the PE fund about continuing on after this short 3-month secondment is over, but they said that the could only offer me an internship position, as they couldn’t get approval to increase their headcount this year (it’s a very small team– 4 people and a secretary, and they are already hiring another more senior person to come in before my secondment ends).
Another major advantage of being here is that it is in mainland China, where I can improve my Mandarin. If I would take the internship position, I would even enroll in language courses at a local university every morning and then come in to the office in the afternoon (but, of course, still work until midnight+). I am really keen to improve my Chinese, so this is very important to me.
Downsides: 1) I would take a salary cut, and I would also not be eligible for a bonus. Plus, taxes in mainland China are quite high. I am guessing that I might end up with half of my current total take-home at IB, on an annualized basis. 2) I would be leaving a secure permanent position at a top tier investment bank for an internship that would last for an indefinite time period. 3) As an intern, I also would be giving up a lot of the perks of a full time job, such as health insurance, vacation time, etc. 4) It could be seen as a career back-step to become an intern again
What would you do?
I would have to apply for full time positions at other places during my internship in order to settle into a more secure long-term position – how would other employers view this? Just 1 year at an IB before doing a 3 month secondment in PE, then becoming an intern at the PE while studying language?