Why almost everyone on WSO underestimate the importance of REAL connections
Guys, I have been around for a very long time and I never understand why everyone has a very rigid laborer mind set here of working at BB->MF->Partner (and not even talk about starting your own fund).
I am from Asia so it may be very different. But to be honest, there are loads of MD or partners who did the BB IBD->MF PE->MD/Partner track. But are they the most successful ones in finance? At least here we have several multiple billion funds. Founders' background are really meh but they have access to exotic opportunities. They generated 45%+ IRR easily, AUM ballooned and now they are investing across geographies after building name and AUM. Founder has a mediocre background (and may not even know how to build a model) but he has a bunch of ex-GS/MS IBD or MF boys working under him.
There is a post about how to get the best ROI going to the target. The best ROI imo is to build real friendships with kids of very successful politicians / entrepreneur. They can introduce you to interesting opportunities and this is network even your MD doesn't have.
Of course, there is no guarantee you will encounter these people in your life and being able to build a genuine relationship but still, this seems HUGELY underrated or overlooked. I am not sure if your MM IBD sophomore internship is more powerful/prestigious than summering under a former Treasury Secretary/Central Bank governor/etc. Personally, I have seen a case of interning for a Prime Minister at a European country (yes, European and not Asia). He did not go BB IBD->MF path but he is much successful than us now switching to finance.
One more example you would know if you are in the industry here. There is a guy in my country started his own PE after working as a post-MBA associate for a few years and he is from a political family in Europe.
I know I will get thrown loads of MS but I just want to say look at the broader picture instead of the learn the technical and be the best laborer. Even MF founders are not all ex-bankers and they probably build an MF empire because of who they know, not because they can build a model with good formatting and no mistake.
Becoming friend with politicians to leverage their influence and network into the financial sphere...you're from Malaysia I guess?
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