I've received a few PE offers, one with a top 5 presence in my industry. I am considering declining and staying on as a banker long-term. Am I insane? Is the money that different down the road?
My decision is being influenced by a few factors, primarily I enjoy the work I'm doing now and love my team. Secondly, I under no circumstances want to take on the debt load of getting an MBA to try to fight my way back into PE - it simply sounds foolish to me.
| +25 | Whats the point in even trying to get into this industry | 5 | 7h |
| +24 | Thoughts on unseriously applying to jobs/interviewing? | 4 | 5d |
| +17 | Am I cooked? | 5 | 2d |
| +15 | Frustrations with Lateraling? | 1 | 3d |
| +9 | What Services Do Animation Outsourcing Companies Typically Offer? | 0 | 2d |
| +9 | Feeling Lost | 3 | 7h |
| Choosing between | 8 | 1h | |
| +9 | Final-Year with no offers | 4 | 7h |
| +9 | Interview Peocess for Lateral VP hire in IB | 2 | 6d |
| +9 | Senior Summer vibes | 1 | 5d |
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I would take the PE offer, put in two years, and decide if you like it. I'm not so naive that I think a PE career these days is far superior to banking in a good group. However, being on the buyside, even for a couple years, will give you valuable perspective if you choose to return to banking. You'll understand how the buyside thinks, which is extremely valuable. For example, it will help as you're putting together a CIM to kick off a sellside. It will help you in negotiations with funds during a transaction. It'll help you identify where a fund is in its life cycle and the acquisition targets that make sense at that stage.
I'd even frame it to your senior bankers like that. Basically, I love this group. I enjoy the work and working with you guys, but I'd like to get a couple years of buyside experience so that I can come back a better banker. They may even leave a seat warm for you come back to.
Keep something in mind: The work you're doing now will bear little or no resemblance to the work you are going to need to do, day in and day out, if you are going to be a career banker. Lots of people like - and even love - modeling, powerpoint (ok, fewer people love powerpoint), deal execution, and the other stuff that consumes your time through the VP years.
But after that it is 90% sales. Are you extroverted? Do you draw energy from people? Do you enjoy meeting with clients? Will it be okay with you to sacrifice time to yourself and with your family for client related travel, dinners, golf events, etc?
By the way if this PE offer is truly strong and you do well there, they might pay for your MBA, or the $ you borrow for one will be insignificant a year or two into your post-MBA career, whether its banking or PE.
I don't disagree, but how is PE any different in this regard? You have to pitch LPs, constantly meet with LPs, meet with bankers, meet with prospective portfolio cos., meet with your port cos. at least quarterly, etc.
I decided to not go into PE (despite having opportunity to do so) and stayed in IB for ~10 years and don't regret it. I left to start my own operating company, which was always my plan. PE as a long term career choice just wasn't that exciting for me, and I didn't mind being in IB and was able to advance my skill set from analyst type work to senior banker. I also never wanted to pursue a MBA due to opportunity cost.
The one exception that I'd make in your case relates to market cycles. There is going to be a downturn at some point in the near future. If you are at a BB, there will likely be layoffs if the downturn is severe enough. PE is more stable during a recession because their funds are locked in. As said elsewhere in this thread, you can always go back to IB.
I'd recommend going to PE if your gut is telling you that we will see a decline in the economy within the next 24 months.
24 hours is pretty low, but over 24 months it is pretty high from my perspective.
As I said, PE is generally more stable during a downturn (assuming the fund has dry powder/has recently raised a new fund) than IB. Corp dev at a tech firm is much more idiosyncratic based on performance of the company. I'd peg it somewhere between IB and PE from a stability perspective. As soon as the market crashes and deal volume freezes banks will start laying people off rapidly. It happens very quickly from the two major downturns that I've witnessed 2001/02 and 2008/09. Large operating companies move more slowly, and PE is primarily dependent on fund cycles. Downturns are also good for PE because entry prices into new deals drop.