Anyone Go from PE Back to IB? Curious to Hear Your Experience

Based on the most helpful WSO content, transitioning back to investment banking (IB) after private equity (PE) is not uncommon, and several users have shared their experiences. Here's a breakdown of insights:

Why People Move Back to IB

1. Preference for Banking's Structure and Pace: Some find the fast-paced, transactional nature of IB more appealing than the longer-term, operational focus in PE. Banking often involves multiple deals per year, while PE can be a grind with years of analysis and value realization.
2. Career Mobility and Stability: IB offers clearer career progression and a more structured environment compared to the sometimes uncertain partner track in PE.
3. Compensation Realities: While PE is often seen as the "promised land," the comp advantage is not always significant, especially in the early years. Banking can offer competitive pay with less variability.

How to Make the Move Back

1. Networking: Many recommend leveraging your existing network, including former colleagues and mentors at your previous bank. Strong relationships can smooth the transition.
2. Recruiters: Some users suggest reaching out to headhunters (HHs) who specialize in IB placements. However, not all PE-focused HHs dabble in IB, so targeting the right ones is key.
3. Direct Outreach: Contacting internal HR or recruiters at banks directly can also be effective, especially if you have a strong resume and prior IB experience.

Position/Level Upon Return

• Most users report returning at the Associate level, with some able to negotiate credit for their PE experience. For example, one user mentioned pushing for an A2 title when returning to their previous bank.

Trade-Offs: IB vs. PE

1. Hours: Banking hours are typically long but more predictable compared to PE, where travel and deal-specific demands can create variability.
2. Learning: IB provides continuous exposure to new deals and industries, while PE often involves deeper dives into fewer companies.
3. Culture: Banking is described as more transactional and sales-oriented, while PE can feel more operational and long-term focused.
4. Compensation: While PE can offer higher upside through carry, IB compensation is often more stable and competitive, especially at senior levels.

Feasibility

Returning to IB is feasible, especially if you have a strong story and can articulate why you want to return. Banks value candidates with diverse experiences, and your PE background can be a differentiator. However, some users note that banks may prefer to mold fresh talent, so positioning your narrative effectively is crucial.

If you're seriously considering the move, focus on networking, brushing up on technical skills, and preparing a compelling story about why you're passionate about returning to IB.

Sources: Considering moving back to IB after 2yrs in MM PE, Q&A: Returning to PE After a Year and a Half at a Series C Startup, HSW MBA w/ Banking&PE Experience Considering Banking Again, https://www.wallstreetoasis.com/forum/investment-banking/how-has-ib-changed-you?customgpt=1, IB -> PE -> MBA -> IB -> PE