Tier 3 IB (Nomura/BNP/HSBC) vs PE (10B+) SA offers help!
(Throwaway account)
As title suggests I have an offer from a tier 3 IB and a PE firm that has around 10B AUM.
Although I think I want to ultimately end up in PE I'm not sure if starting off in a PE is worth it. My goal if I do go to the IB is to leverage my return offer (hopefully) and use that to land in a top EB/BB for FT if possible.
The PE firm is a 2 year analyst program to associate promote so I wouldn't have to worry about having to pack my bags after two years. However, a 10B firm is no KKR/Carlyle so I just wanted to hear your guy's thoughts on what I should take.
Thank you for your advice and input!
PE
Thanks for your input! Would you be able to elaborate? Thank you!
Coming from a guy that did an internship at a PE fund in the same size range, PE PE PE PE. Can't stress that enough if they have an analyst program.
Take it from me - I'm going through FT recruiting for IB right now because my fund didn't have an analyst program, it is brutal as all hell. Nothing like SA recruiting. Almost every single BB/EB is not hiring any FT analysts because they filled entirely from the SA class. You have a miniscule chance to make it to an EB/BB from a tier 3 IB, because there will be maybe 5-10 collective FT openings across all EB/BBs.
You can always move from a $10B fund up, it's really not as hard as you'd expect.
Thanks for the input.
But if I want to go to an EB/top BB wouldn't I have a better chance doing that from a tier 3 IB? Since its IB -> IB?
I also don't know how easy it would be to lateral from different PE since it is a much less known path.
Put it this way: coming from Nomura/HSBC, do you really think you'll beat out guys from more reputable MM shops like Jefferies/Cowen, along with the SAs who didn't get return offers from their BB/EB, for the very few spots available?
Someone else mentioned it further along in this thread: it's ultimately going to come down to your network if you take the IB path. And I don't mean analysts/associates, I mean VPs and MDs who you are close with and will actually go to bat for you. And to be honest, if you have that in your pocket, then it really doesn't matter if you do IB or PE. It's more or less the same skillset (at the junior level) at the end of the day.
Take the PE. You are maximizing options/opportunity that way IMO. If you change your mind you could definitely make the switch in FT recruiting. I was able to spin a PE internship into a strong banking offer saying what I wanted more of, etc.
depends on how strong your network is at BBs/EBs. I went through full time recruiting for IB this summer/fall and moved from a lower MM to an EB but only because I had a strong network during my junior year SA recruiting and kept in touch with them throughout the year. I would go with PE unless you have people who you know will vouch for you for full time recruiting at these BBs and EBs. it's hard to build those connections between now and next fall when FT interviews come around.
whattodoinlife, I usually suggest taking the IB offer for the fact that IBs tend to have more robust and established analyst programs, but in this case, I'd go for the PE firm given that the IB is tier 3, you want to work in EB/BB IB, and the PE firm in question has an actual analyst program.
As some other posters have suggested, you probably will have a tough time during FT IB recruiting given that FT IB recruiting is almost non-existent these days, but not only will FT IB recruiting be easier coming from a large PE shop, but so will lateraling should you choose to do that down the road. Also, EBs and BBs clean house during PE recruiting, so if MF or MM PE is your goal down the road, you should position yourself for that, which again, makes PE the best option for you right now. Good luck and congrats on the offers.
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