Question about expected return from deciding between BB/EB offers

I didn’t realize how much exit opps can vary between different groups at BBs until reading some threads on here today.

After reading that, I was curious how (or if) this has a significant effect on the expected return of the “average” analyst.

Thinking about this in comparison to an EB, where (I believe) every analyst is working on M&A/RX and holding pen to the model. Does this added uncertainty in group/(average)exit opps factor into your decision on which is better to pursue?

What I’m trying to get at, is which would be the safer bet to get to the goal of PE (if you had no idea which group you’d be placed in if you chose the BB and they were fairly comparable banks)?

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Yes, the low risk-high reward option for PE exits is to go to an EB. Taking away GS/MS/JPM, I'd put all of the EBs (maybe minus Greenhill) above Barclays/BAML/Citi/CS in tern of PE exits. This is simply because of the risk of being placed in a weak group at the BB. However, if you have a strong network in a top group at a mid-tier BB, you may have better PE exits than some of the EBs.

It comes down to where your connections are (which groups) at the BB and your background. If you have a ton of alumni in a top group at a mid-tier BB, that would increase your chances of getting placed in that group, so you might consider taking it over an EB.

 

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