Top EB vs SM (LO Value, 1-3B)

Based on the most helpful WSO content, here’s what you need to consider:

1. Training and Skill Development: A top EB analyst program is often regarded as one of the best foundations for a career in finance. It provides rigorous technical training, exposure to high-quality deals, and the opportunity to work closely with senior bankers. This experience can be invaluable for building a strong skill set, particularly in financial modeling and transaction execution, which are highly transferable to public equity investing.

2. Exit Opportunities: Top EBs (like Evercore, PJT, Centerview, etc.) are known for placing analysts into prestigious buy-side roles, including hedge funds and private equity. If your long-term goal is to move to a larger or more prestigious public equity fund, the EB route might offer better optionality and a stronger network to facilitate that transition.

3. Direct Investing Experience: On the other hand, starting at a small SM (1-3B AUM) gives you immediate exposure to public equity investing. You’ll likely gain hands-on experience in analyzing companies, building investment theses, and making investment decisions. However, the smaller size and mid single-digit IPs suggest that the fund may not have the same brand recognition or resources as larger funds, which could limit your future mobility compared to the EB route.

4. Brand Name and Career Flexibility: The brand name of a top EB carries significant weight, both within and outside of finance. It can open doors to a wide range of opportunities, including larger funds or even roles outside of investing. A smaller SM may not provide the same level of recognition or flexibility.

5. Long-Term Goals: If your ultimate goal is to stay in public equity investing, the SM role could be a more direct path. However, if you’re looking to build a broader foundation and keep your options open for other buy-side roles or even corporate opportunities, the EB analyst program might be the better choice.

In summary, the EB analyst program is likely to provide a stronger career foundation and better optionality for transitioning to top-tier funds in the future. However, if you’re confident in your long-term commitment to public equity investing and value immediate exposure to the space, the SM role could be a compelling option.

Sources: Has Anyone Worked at Both a BB and EB?, Best PE Analyst Programs vs Opportunity Cost (top IB), The Case for Elite Boutiques over any Bulge Brackets in 2022