Why is PE seen to be so prestigious?
I'd appreciate if someone could educate me on this as I'm not very aware. Why do bankers tend to leave after two years to go into PE? Yes, I understand that it may pay much more but are there any reasons besides this. Like why would someone leave a prestigious place like GS to go work in PE? Any insights much appreciated.
A few thoughts:
Marginal increase in work-life balance (negligible during a live deal)
Potential for carried interest as a senior deal team member at a sponsor
As a member of a sponsor deal team, your team will drive the cadence of workflow for the investment bank's deal team (timing of work streams, expectations, cleaning data room files, etc.)
Financial analysis has the potential to be more stimulating given a fund's strategy or investment thesis (a fund has a mandate to make and manage investments; a sell-side M&A banker runs a process for said fund)