Why IB specifically? Can we jump right into PE or HF?

Yes it is. I will only hire you if are from MS Tech (maybe McK) and will consider you if you are from GS. Best of luck!

Signaling to the employer at your exit opp I guess. Think about everything it takes to land that exit opp. First, you have to get into IB which means being from a target school (shows intelligence), nontarget school (shows grind and perseverance), or semitarget school (combo of intelligence and grind). After that, you have to get through your analyst stint. Some groups are sweatier than other, but you're going to test the limits of the human physique by working 80 hour weeks (even if that's not what you're averaging). Aside from handling that job adequately, you have to find the time to network and study technicals for the exit opp recruitment process. It's really hard and that's the whole point. By making the candidate pool smaller and smaller by automatically filtering out candidates at every stage of the process, the exit opp employer has a much smaller and much stronger candidate pool. The exit opp employer is going to have a much easier job picking good candidates because if they applied, they're really good.

At the same time, it's technically possible to go straight to PE or HF from top top top target schools (really only HWS). However, you have to be the cream of the crop at these schools and it's not even possible to articulate how tough it is to be at this level. It's not really an accessible path, whereas the IB->PE path is one even the super nontarget kid can go after.

IB isn’t the only way to do it, but it is the most common and most risk-averse route. Some buy-side firms and hedge funds do have internships or entry-level analyst roles, but these are rare and therefore very competitive to get. I transitioned to the buy-side a few years after graduation without traditional IB experience through a combination of networking/personal connections, hustle, and definitely some luck. To be honest, I’m self aware enough to know that it also didn’t hurt that I was a female candidate in a predominantly-male industry that is scrambling to show diversity to LPs.

My transition was a massive learning curve at first, and it always will be for everyone - but I do think it is an easier ramp for those coming from IB. I’m confident in my role now, but at the end of the day I will never have that sell-side M&A experience that most of my colleagues have, and I do think that is a valuable perspective to be able to apply to the buy-side.