Those now farther out in their careers, how much did chasing prestige actually get you?
Now that you've graduated from a top uni, landed at a top firm, exited to a top fund, went to a top hf/mba, etc. etc., what did you gain out of it all? Was prestige worth all of the grueling effort you put in?
How much farther do you think you are compared to someone who went to state school, took a middle market IB offer, etc.?
And in the end, are you happy with the sacrifices you made and what you got out of it?
Fatter and poorer than I thought, why do you ask?
Based on the most insightful WSO threads, the value of chasing prestige varies significantly depending on individual goals, priorities, and perspectives. Here's a breakdown of what seasoned professionals have shared:
Career Advancement vs. Happiness:
Prestige can open doors to elite opportunities, such as top-tier firms, funds, or MBA programs. However, many professionals admit that the "prestige race" often leads to diminishing returns in personal happiness. The sacrifices—long hours, stress, and missed personal milestones—can outweigh the benefits if intrinsic satisfaction isn't aligned with the career path.
Comparison to Non-Prestige Paths:
While prestige might give an initial edge, many WSO users highlight that individuals from state schools or middle-market firms can achieve similar success through persistence, networking, and skill development. Talent, work ethic, and adaptability often level the playing field over time.
Sacrifices and Regrets:
Some professionals regret prioritizing prestige over personal relationships, passions, or mental health. They emphasize that while prestige can boost your resume, it doesn't guarantee long-term fulfillment. Others, however, feel the sacrifices were worth it for the financial security and career flexibility they gained.
Perspective Shift Over Time:
As careers progress, many realize that prestige matters less than they initially thought. Personal relationships, meaningful work, and a balanced life often take precedence. The "rat race" of constantly chasing the next prestigious title or firm can feel empty if it's not tied to genuine passion or purpose.
In summary, prestige can be a powerful tool for career acceleration, but it’s not a one-size-fits-all solution. The key is to balance ambition with personal values and ensure the sacrifices align with what truly matters to you. As one WSO user aptly put it, "Money and prestige can make you happy, but they don't have to define you."
Sources: Impossible! MBA average compensation 10 years in. Any help?, The Efficient Career Hypothesis: Almost All Jobs Are Priced In, A Letter To All Top 10 University Kids Complaining About Recruiting, What I've learned so far after 1 yr at a top MBA program (If I could do it over):, Why Prestige Really Matters
A trail of broken relationships and permanent career anxiety.
The prestigious jobs are prestigious for a reason. They create the best learning experiences and you work with the highest calibre of individuals, on average. So yes, chasing prestige helped me inmensely in the early years of my career. After that there is a trade off between prestige and money (the infamous GS discount etc) and I picked money.
I’m guessing this meant going to an MM firm for better economics? What’s the disparity in compensation like at the big firms vs smaller firms?
The people who benefitted from the prestige are not posting on here. The value of working for a generous SM HF billionaire is enormous especially if you can seed your own strategy provided you can truly make money. This is why prestige matters, it is how you learn to make money. The economics of the top seats naturally draw in moneymakers, and you learn from osmosis. Let’s be honest with ourselves here take the same person same IQ even same network. Have said person train under a small hedge fund for a tenured pm now contrast that to someone who trains under the best citadel PM. After 5 years who is more likely to generate money (you can argue perhaps the same) what actually matters here is the signaling. You working at these “prestige whore” firms is a signal to everyone that you have at least a baseline of intelligence and indicate either strong potential to make money or already are a producer. You should absolutely chase prestige if your end goal is money. The counter to this argument isn’t firm doesn’t matter blah blah it’s what do you value and is that absolute to just money because going to most prestigious firms absolutely helps.
I would like to add that chasing prestige even if there’s a discount to material comp is actually not shortsighted. If you have the chance to make partner at GS and make half as much as you would at a better economics shop you should pick GS. Not because omg prestige, but because your optionality and vantage point are amazing(Building relationships…example would be Dell family office etc). At the end of the day doing your own thing is how you make money. This in finance requires you to raise money. I do not care what you rebuttal it is much easier to say yes to H/W/Y/P/S + GS + BX + Tiger cub as an allocator and you will never get in trouble for doing that vs a scrapper. Brutal truth and I say this as a scrapper.
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