PE out of college in Europe is much more feasible?

Based on the most helpful WSO content, here are some insights regarding starting directly in Private Equity (PE) out of college without Investment Banking (IB) experience:

1. Feasibility in Europe:

   • In Europe, it appears more common for funds to recruit junior people directly out of college, even those with no IB experience. This is in contrast to the typical U.S. path where individuals often spend 2-3 years in IB before moving to PE.

2. Value of Starting Directly in PE:

   • Starting directly in PE can be advantageous as it potentially shaves off the 2-3 years typically spent in IB. This can fast-track your career, allowing you to gain investing experience earlier.
   • However, it's important to consider the value proposition of the role you are accepting in comparison to your alternatives and what it means in the context of your career goals.

3. Switching to IB Later:

   • While starting in PE can provide a unique set of skills and experiences, transitioning to IB later in your career might be challenging. PE roles are highly specialized, and moving to a different sector within finance, such as IB, might not be straightforward.
   • The skills and experiences gained in PE are different from those in IB, and firms might prefer candidates with direct IB experience for certain roles.

4. Career Flexibility:

   • The flexibility of career options might be greater if you start in IB. As an IB analyst, you could recruit for various roles, including PE, hedge funds, venture capital, startups, and corporate development.
   • PE recruiting is significantly more competitive, and having IB experience can make you a more attractive candidate for a wider range of opportunities.

In summary, while starting directly in PE out of college in Europe is more feasible and can fast-track your career, it is essential to weigh the long-term implications and consider how it aligns with your career goals. Transitioning to IB later might be challenging, and starting in IB could offer more flexibility in your career path.

Sources: Investment Banking to Private Equity - 6 Things You Should Know, Landing a job in PE, VC, IB with no college degree - your thoughts?, How many target kids go straight to MF PE?, Is investment banking not as prestigious as most people think? Are kids that break in sub-par?, Why move to PE/HF at all?