Can GCM analyst recruit for PE?
So with the incredibly accelerated timeline of PE recruiting (from what I understand, analysts start recruiting in Sept. or October of their first year as an analyst), does that mean's it's impossible for someone who starts FT in DCM or ECM to recruit for PE on-cycle their first year?
The reason I think this is that PE firms value modeling, and since the perception is that GCM analysts don't do much modeling, that would seem to preclude them from being eligible to recruit for PE firms... is this correct?
I work in capital markets at a BB. First of all it's important to understand CM is more than ECM / DCM / LevFin. Broadly yes, but there are a lot of specialized groups within those umbrellas – SPAC / Converts within ECM, Loans / Bonds within DCM, ABL / 'RX' within LevFin, structured / securitized credit, liability management, etc etc. My bank has something like 19 CM desks.
The answer heavily depends on group, but typically everyone has some sort of 'exit' – you're not stuck in CM for life. Many ECM analysts go on to work at tech / consumer / healthcare companies in some sort of strategy / finance capacity. Coming from DCM Bonds you have a shot at credit-focused asset managers (pension funds / insurers) in addition to your 'normal' corporate treasury roles. If you're on one of the technical structured finance desks, a common exit is specialized buyside HF with exposure to your product. And yes, if you're on a LevFin-esque desk in capital markets, you can participate in the recruiter-driven clown show that is on-cycle for MM+ PE and MF Credit. All of that is in addition to great internal mobility to coverage / S&T.
Recently, CM analysts from my bank have exited to MM PE, GSO, KKR Structured Credit, Carlyle Infra PE, brand-name distressed HF, VC-backed startups, strategy roles at F100s, and of course top business schools.
Will you place into BX PE, Elliott, or Sequoia? Quite frankly, no. But there's still a ton of opportunities open to you, and if you're dead set on pursuing the IB -> MF PE -> HF / HBS path, there is nothing stopping you from lateraling into coverage and getting back on that path, albeit probably a year or two behind.