Banking VP or Junior PE Associate?
I'm currently an associate with an EB in London and got a fast-track VP offer from one of the Top BBs. Pay is much better as I will be relocating to one of the lower tax jurisdictions.
Got a few growth equity offers in the meantime, decent global names, large AUM, various locations, but none is truly blue blood. Problem is I'd start with newly recruited 2nd year banking analysts as a fresh associate, so basically a 3-4 years cut on my title. Fresh associate pay as well with no carry (at least in the next 4-5 years) so materially less than the banking VP offer...
I'm 30 already and the idea of becoming the bottom of the hierarchy again feels exhausting to me. Not that I'm not willing to learn & work hard, just not sure will it really worth the cut. In a couple of years I'd still be a "senior" associate when I'm in mid 30s, while many others would have made Principal / Partner by that age. Just feel so underachieved when I picture it.
I was with a tier 3 bank by the beginning and lateraled into the EB. Have been trying to exit since 2019 but no buyside firm would talk to me. :) Only really got opportunities knocking this year - now that market is good, everyone is hiring...I know this is probably the last boat if I want to leave banking, but, the sacrifice seems to be big. Also that I'm female and planning to have kids, that'd put at least another year of stagnation on my career at some point.
Would it worth it to leave banking now for the investing dream?
There is no issue with losing a few years when considering your career is still 30+ year.
Why tf do interns feel the need to give advice on career choices
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Do you just really want to be on the buyside and dislike investment banking? That has to be a massive pay cut. I just made VP and can't imagine starting over as an associate. I'm surprised they even made you this offer as it's fairly insulting. They should at least be hiring you as a "senior associate" or something.
Thanks...now that there are only a few firms who are willing to take people with 4-5 years banking experiences, I guess they all know bankers who do want to get out would be sort of desperate at this stage - so the offers are "take it or leave it".
At my previous firm we took a third year associate as a senior associate teed up for a short VP promote on the buyside. If you are talking about big name shops, then yeah they may not care because they can get an analyst to associate hire for the same cost, but there are probably LMM firms that will respect your seniority more.
Do you think you would enjoy / be able to succeed as an MD in investment banking? If so, take the VP offer. If not and you think you could as an MD in a buyside role then take that offer. Longevity as a senior person in either path will have a more significant impact on cumulative comp than any mid-level differential
Thanks for the advice! If it's for a decent name with long term career I'd be willing to take the cut immediately. Current situation is, most likely I need to think of next move very soon if I pick any of the offers. Or maybe I'm just overthinking?
One is known for frustrating culture & toxic partner - I had people who's still there & who's left openly warning me not to join. They have a high Asso/VP turnover and many good people are gone according to my DD. Although, they look at interesting assets and can be an okish platform for next jump.
Another one is much more chilled and pays well, but they only hire Partners / Heads from blue-chip names (like Apollo, TPG, Bain), VP is probably the highest level I can reach without large cap US firm experience.
There's also one for co-investment but felt it's a dead-end if I join as asso so already off the list.
As an associate I would prioritize brand / rigor of experience above all else as you can still move around fairly easily up to the VP level. Once you’re at the VP level I would put more consideration towards culture / internal promotion track record as if you are locked in with carry it becomes more challenging to move around
IMO, I’d take the VP offer just given the large bump in seniority/pay it gives you (no longer a junior level banker anymore) and because it’s one of the hardest promotions to get and signals well. Additionally, there’s always a chance, and I’ve seen it happen, that you can recruit from VP in IBD to a VP role in PE/GE, especially if you have strong sector experience. I just think your life goals are important and being a VP in IBD lends itself better to that
Thank you :')
Thanks for insightful response. Is it really possible to movr from vp in ib to a respectful role in PE?
Speaking for Europe, yes it is difficult since there are less VP turnover/hires, but not entirely impossible. Have seen VP lateral to same level in buyout shop that they worked with a lot
I'm in a similar position to you (more senior IB associate on track to make VP within next 12 months with the opportunity to be an entry level associate at a strong PE firm). The advice that I've gotten has been that if I don't want to be a career banker, I should get out of banking ASAP and that PE is a better career and also will set me up better to ultimately go to corporate if I ultimately decide the buyside isn't for me--obviously corporate roles are viable exits from banking too, but the operational insight you get from PE will make it an easier transition. Also, it seems like its not unheard of to go back to banking from PE if you decide you prefer banking. Best of luck with the decision.
Were you an A2A promote or mba?
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