Fellow Monkeys,
Some background about myself - currently a 3rd year analyst about go A2A working in an industry specific M&A group. Have been able to secure a PE offer (~$5bn AUM) and an offer in IBD (Associate Role at PJT/EVR/Moelis). Both opportunities seem to be great, but having trouble figuring out what the ideal next step would be. I got crushed during my first two years of banking and it was horrible, but recently things have been light so kind of forgot what it feels like to work 100 hour workweeks in banking.
PE Pay: 125 base, 100 projected bonus // 9:00am- 8:00pm most days, barely any weekends
IB Pay: 150 base, 150 projected bonus // Undefined work hours, but group has consistently mentioned they get absolutely crushed
Any thoughts or framework to help me base my decision off of - I am sure many of you have gone through this before and have some intel?
I would say go to EB then leave after a year.
Are you set on going to PE? I have heard it is hard to lateral at the associate level to a PE shop on this forum, what are your thoughts on what your exit ops will be once you lateral to the EB (which are all great brand names)?
I honestly have no idea why’d you take the banking offer unless you want banking as a career but I’m just a student.
I do not think the EB will offer any edge for me to recruit for PE, the current shop I am at is one of the best already in the industry group I work in. It would be purely to stay at the EB long term.
I would ask yourself the following questions:
1) Biggest consideration - How much confidence do you have around the "9am-8pm most days, barely any weekends" - hours vary widely at PE shops and 5bn AUM at a traditional buyout fund can be very active. I've had friends who switched for lower pay and ended up very discouraged when the hours didn't work out the way they had expected
2) If you can get comfortable with your assumption in #1, you need to think about how you value the incremental hours. I work as an associate at one of the 3 banks you mentioned above, there is nothing consistent about the hours. There are often days where I leave at 8pm, there are often days where I leave at 2am - same inconsistency with presence or absence of weekend work.
Honestly if you had asked me two years ago (when I was an A2A promote) I probably would have taken the EB job in your shoes. Today I think I would take the PE job - not so much that the job has changed or expectations have changed but because my own personal priorities changed. I think this is the part you will have to decide for yourself - I've seen friends make this decision both ways and there are ones who were ultimately unhappy on both sides.
3) Last thing I would consider is your trajectory at the fund. At the EB there is a very clear path upward and you will likely get compensated extremely well during it. Smaller PE shops are less certain. Do you need to go to business school to move up? Will they sponsor it? Is it a brand name enough fund that you could come out on the other side of B-school with a similar/better gig as a principal? There is a fair amount of risk to this path that may not be present in IB. Also is it a newer fund or is there a long track record? Ultimately where did Associates who started there end up?
I agree with all these points, but think the biggest consideration is -- do you want out of banking now? Are you comfortable waiting a year and recruiting? Are you open to climbing the banking ranks?
Some key areas I would consider
1) It's easier to go from PE back to IB, then trying to break into PE with each passing year in IB. But I would suggest thinking about the type of work you enjoy.
2) If you truly enjoy investing, PE would be a better fit. If you really enjoy positioning and more sales type work, then IB might be for you (especially as you move up the ranks in IB).
3) PE comp varies so much b/c of the carry component, where you could make more or less than IB, depending on your platform and compensation structure.
4) Lifestyle. It sounds like your PE option is slightly better, but remember that deals are deals, doesn't matter which side. If you are on a live deal, I believe all is fair game.
My recommendation is you go with the PE offer, and if you hate it, recruit for IB. You'll have a solid resume and shouldn't be much trouble getting back in
Great comment. I was debating (only a little bit) between staying on after A2A or going to the buyside and thought a lot about points 1, 2, and 4 specifically. IB in my mind is super easy to get back into and I felt like I would hate how sales-y being a senior banker was, so why not try the other side while I am still early in my career. Lifestyle has been insanely better - yes deals are deals and timelines can still become very compressed, but fuck banking man. I would never in my life go back to banking, even for more money.
Faced a similar decision with great IB group offer and PE offer. Went with the PE offer and I thank god every day I’m on the other side. Workload can be heavy at times but it’s much better to be working to understand something vs get something pretty out of the door.
I like this comment thanks
Thank you everyone this is very helpful, yeah definitely leaning towards the PE gig.
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