i know how the general consensus is that the way to go for PE is Ivy-> IB/consulting ->PE->MBA->PE again but is it common/reasonable for someone to get into PE after an IB associate stint if they didnt do PE before MBA?
Also - if not, why do PE firms prefer analysts over associates so much?
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Not only PE firms, any firm. Simple: When they hire analysts they can payer them less. Associates require higher salaries. It's all about the money
The path is IB PE MBA PE or something else...taking pre-MBAs, they get their model monkeys and can grind on them for commodity labor...post MBA, you should be on a career track by then, and in the PE world, there typically is no well defined career path unless you're talking about a megafund (which will only hire operators or people with pre-MBA experience).
You have a shot at some MM or smaller shops, but the megafund game is prob over unless you segway over as a senior banker
Building on the posts above, two additional points:
Different skills/qualities required for each role In the long-run, communication skills, network, thoughtfulness, maturity and certainty around chosen career path are highly valued. However, there is plenty of grunt work that can be done by people who possess only one or two of these attributes but can crank through models, investment committee decks, diligence lists, credit docs, etc. This means hiring people and then holding the option to chuck them out. In my opinion, not a lot of top post-MBA associates with piles of student debt would be willing to accept such a job.
Perceived quality When I was an analyst, a senior banker once told me that "analysts are the people who get it right the first time around -- the post-MBA associates got it wrong the first time and had to go to business school to get back on track". Ignore for a minute that this statement assumes that transaction-oriented high finance is the be all end all (which it isn't). If you agree with this statement -- at least on average -- then it partially answers your question about hiring analysts versus associates. It's analogous to target vs. non-target schools during recruiting. On average, you may see higher quality applicants at targets than non-targets (even though there are numerous exceptions).
A less common but somewhat decent path to PE is to find a corp dev / m&a group for a heavy acquiring firm that performs a boatload of buyside dilligence. Do a few years there with a good group and you have a decent chance to get a PE gig either pre/post MBA.
What do you guys thing about this path:
Buyside Credit Analyst (LBO Primary debt only - senior & sub debt - i.e. invest at closing & hold) -> MBA -> PE?
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basically im asking why is:
Ivy->IB->PE->MBA->PE so common
but Ivy->IB->MBA->IB->PE considered so difficult.
is this true? in that case you got into IB first round but decided to stay for a while, take an MBA, and stay as an associate before moving to PE. Is this unrealistic or common/why?
The second is more difficult for a number of reasons. The two most common entry points into PE are prior to an MBA and at the senior level. The second is a lot more difficult, because PE firms tend to like to hire people that have worked previously in PE. Additinally, when you are hired out of an MBA program either for PE or IB, the thought is that you could potetially be a partner/MD one day. Trying to transition into PE after working as an associate WITH an MBA is tough, because there is no formal recruiting process and the needs of the PE firm at that level are usually fulfilled by the hiring of the MBA grads.
This whole path discussion is a bit inane. Just work your fucking ass off and be the smartest person on everything you do. The rest will sort itself out.
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