Maybe I’m still a rookie, who hasn’t had enough time to become jaded from IB, but I’ve seen a lot of connections go from BBs or top EB/MM banks to lower-tier MM PE shops. From my understanding, many take up-front haircuts on comp for this. Is this a function of better hours and lifestyle, a desire to escape the grind of being beholden to clients or simply pursuit of a more interesting job description (investing vs selling)?
If it is the above, I totally get it, but it almost feels sometimes like people get so wrapped up in the buy-side idea that there is an assumption that staying in IB is suboptimal even if they’re at a great bank and leaving for a less proven fund. Is this accurate or are there opportunities further down the line that some of these LMM PE shops might provide that even a top bank cannot?
bump
the decision to pursue lmm pe is a function of all of those things that you mentioned, wanting to try private markets investing while getting better hours than both banking and large cap pe on average. People going into pe don't have their entire lives planned out. They tried banking, and now they're trying pe. If they don't like it, they can go back to banking or do something else. Also the haircut on comp is 200 instead of 250-300 as a banking associate, which is significant sure, but life isn't about money and I promise unless you suffer from severe lifestyle creep, your life won't be any worse if you're not making that extra 50k.
Makes sense, it would be fun to try out being on the investor side of the business. I would imagine there's a lot less time spent on crafting marketing materials that no one reads or other admin-work for clients. I'm sure something else mundane takes the place though.
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