Right out of undergrad : BB IB or MM PE ?

PE MF vs BB IB right out of undergrad is a no brainer.

But what about PE MM vs BB IB ? Pay slightly better in BB IB, lifestyle slightly better (depending on firms, could be significantly better) in MM PE, so I guess it all comes down to exit opps (or more precisely post-analyst years opps).

I suppose BB IB analysts are better positioned than MM PE analysts to get MF PE associates roles. But many BB IB analysts don't get MF PE associate offers and eventually end up in MM PE firms.

Would it make sense to chose a MM PE analyst offer right out of undergrad over a BB IB analyst offer ? Regarding long-term career prospects does spending 2-3 years in IB before joining the buyside confers an advantage vs going directly to the buy side ?

Comments (17)

  • Analyst 1 in IB - Cov
Dec 1, 2021 - 7:19pm

This question is phrased very poorly. MFPE or BB IB isn't a no brainer. Neither is MFPE or MMPE. It all depends on your individual interests and long-term goals. If you want to invest in larger businesses than MFPE is good for you. If you want more opportunities to make operational improvements and be closely involved with portcos, MMPE is good. If you aren't sure what you want, there are few better roles than BB IB in an industry group you enjoy. 

Dec 3, 2021 - 9:58am
Shockattack11, what's your opinion? Comment below:

For your analyst stint, if you 100% want to be an investor, it is a no brainer to take BX/KKR/SLP/Bain/Vista/WP over EVR/PJT/GS/MS. The banking stint is overrated. You can't even make the excuse that the modeling reps you get is important because many PE funds hire consultants and will teach you firm specific modeling. Each one of those programs have robust training that will set you up better for a career in investing. Also, banking doesn't provide that much more optionality than PE and each of those shops pay more than all BBs except BX and on par with Moelis and PWP.

  • Analyst 2 in IB - Gen
Dec 3, 2021 - 9:28pm

I had two PE MF analyst offers and took a top banking offer instead so no its not a no brainer lol. I liked the people at my bank a lot more than the people that interviewed me at the MFs -- there are only 5-10 really good PE funds that take analysts, but 25-30 'top notch' PE funds (last fund >10B) that recruit associates from the banking analyst pool. I decided I'd rather wait to find somewhere that felt like a better fit. I'm near the end of my banking analyst stint now and received 2 top MF offers on cycle, declined both for fit and am heading to a top long/short fund in a few months. Banking wasn't always (in fact was rarely) fun but I wouldn't trade my experience for the higher pressure, lower comradery corollary role as a PE analyst. 

  • Prospect in Research - Other
Dec 1, 2021 - 9:48pm

There are more important things in life than working at a MF

Dec 2, 2021 - 1:01am
techisnotprestigious, what's your opinion? Comment below:

SF3K

PE MF vs BB IB right out of undergrad is a no brainer.

But what about PE MM vs BB IB ? Pay slightly better in BB IB, lifestyle slightly better (depending on firms, could be significantly better) in MM PE, so I guess it all comes down to exit opps (or more precisely post-analyst years opps).

I suppose BB IB analysts are better positioned than MM PE analysts to get MF PE associates roles. But many BB IB analysts don't get MF PE associate offers and eventually end up in MM PE firms.

Would it make sense to chose a MM PE analyst offer right out of undergrad over a BB IB analyst offer ? Regarding long-term career prospects does spending 2-3 years in IB before joining the buyside confers an advantage vs going directly to the buy side ?

BB IB easy

Most Helpful
  • Intern in IB-M&A
Dec 3, 2021 - 1:06am

Personally, I'd take Audax/Crestview over BofA. I myself chose MFPE (KKR/Bain/SLP/Vista) over EVR and GS.

Audax is a very respected MM and has been hiring analysts for over a decade. They place well into HBS/GSB, and the training you receive is top notch. Many analysts have moved upstream from Audax or have moved to other top UMM/MM shops.

Crestview is very unique. You get promoted to associate after one year, which looks great for your resume. Their associates seem to go to great shops UMM/MM shops afterwards with a few MF exits sprinkled in there.

Dec 7, 2021 - 1:26am
uspsofficial, what's your opinion? Comment below:

As someone who recently just made this decision here's my perspective on why BB IB > MM PE.

When I first got the MM PE SA role I thought I was a literal god. The buyside superiority complex immediately started getting hammered into me by the associates and I started looking down at all my friends who took shit banking offers. Suffice to say my thinking couldn't have been more flawed when I realized how shit of a proposition it would actually be to start your career at a no-name sub $5bn fund in a lackluster industry. Maybe I could have gotten lucky and secured the associate promote but in the 50% chance that didn't happen I would have been totally screwed. Try recruiting from a PE fund no one has heard about versus infinite banking kids from solid shops.

Dec 15, 2021 - 8:00pm
uspsofficial, what's your opinion? Comment below:

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