Straight to PE (vs IB stint first) as an undergrad?
I've been a lucky chimp to get offers from both an upper-tier BB (Asia office) and an APAC MF (global buyout) as an undergrad. I used to think it's a no-brainer to go straight to the buyside given the chance, but now I'm thinking if I'm missing something. Btw I'm not limiting myself to any definitive long-term goal say 'defo PE for life'.
Below is my thinking, please feel free to correct me or add your thoughts. Could really use some suggestions, thanks!
IB stint first (and perhaps stay sellside, who knows):
- relatively better learning environment (more handholdings)
- more people of my age, so more fun and less likely to get depression
- more networking opportunities, also better to learn how to handle myself in a professional setup possibly full of big shots (this could be important for doing PE later on?)
- better package for the first few years
- job security is less subject to market volatility
Straight to PE:
- more interesting work when you get to really learn the business and industry
- more control over working hours & tasks, although with similar hours and likely higher stress levels from my experience
- good to start building the investor mindset early on, hence easier PE life / starting own hustle later
- (maybe) looks better on CV than banking in case there are any next steps in my career
Above are my immediate thoughts, I know some of these could look stupid and there must be more to that. Thanks guys for all your ideas in advance.
bump
PE
posting as someone also from asia and having siblings in the space, i think if this was the US i’d be conflicted just like you are, but if in Asia (and i’m assuming Hong Kong), i think there is a fairly large gap between being at a MF (in terms of global recognition) and being in IB, even if it’s GS/MS. the opportunity sets each opens up for you is different, the MF would open you up better for both industrial and geographical flexibility, not so much for the IB.
Thanks a lot, that's helpful!
I would say your points 3-5 actually apply more to PE than to IB. For pay MF PE firms pay above banking although this might be different if you start in MM PE.
As for handling yourself professionally, you get more of that in PE as an analyst as people from both inside and outside your firm expect you to be polished and articulate. I’d say you’d learn that more quickly in PE because the people you work with are usually older than in IB and expect a certain level of maturity of you early on.
If you learn better in a structured environment then banking is a good option. If you’re an independent learner who is proactive and wants to be an investor in the long term then starting on the buyside is a better option.
This is inaccurate. Only a minimal amount of MF pay more than banking for first year analysts nowadays. Most of them are paying tens of thousands less when you factor in bonuses.
I'm basing it on my own pay package (MF AN1) and it's more than my banking peers (exc. CVP maybe)
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