PE to IB - “lateral” process

Based on the most helpful WSO content, here's what you need to know about transitioning from PE back to IB:

1. Interview Process:

   • The interview process for lateral hires into IB often focuses on your ability to articulate your experience and how it aligns with the role you're targeting. Since you already have IB and PE experience, the emphasis may be on how you can leverage your PE insights in an IB context.
   • Expect behavioral questions to assess your motivations for returning to IB and your long-term career goals.

2. Technical Questions:

   • While technical grilling may not be as intense as for entry-level candidates, you should still be prepared for advanced technical questions. These could include topics like accretion/dilution, merger math, LBO mechanics, IRR/MoM impacts, and other valuation-related concepts.
   • Some firms may test your ability to think critically about deals and financial structures, given your PE background.

3. Modeling Test:

   • A modeling test is likely, especially for lateral hires. Based on WSO threads, these tests can range from building a three-statement model or LBO model to performing sensitivity analyses or creating a returns table.
   • The complexity of the test may depend on the bank and the group you're interviewing with. For example, MM banks might focus on practical, time-constrained tests, while EBs or BBs could include more intricate scenarios.

4. Headhunters:

   • For IB roles, headhunters like Amity, Bellcast, CPI, Dynamics, Glocap, GoBuyside, and HSP are frequently mentioned in WSO discussions. CPI and HSP, in particular, are noted for covering a wide range of IB clients, including MF and UMM firms.

To prepare effectively: - Brush up on your technical skills, especially LBO modeling and valuation techniques. - Practice articulating your deal experience and how it translates to the IB role. - Reach out to headhunters early and ensure your resume highlights your IB and PE accomplishments.

Good luck with your transition!

Sources: Q&A: Barclays IB to MM Private Equity, Private Equity Recruiting Process (From Banking), How to Navigate FT Recruiting: Learn from My Successes/Failures, Private Equity Recruiting Walkthrough – My Experience, Private Equity Recruiting Walkthrough – My Experience