Best Path to PE from BB Coverage w/ Outsourced Modeling
I've seen similar threads, but would love some more specific advice.
I'm about to start as an AN1 at a mid-tier BB (think BofA/Citi) in a coverage group that outsources most modeling work. Long-term, I'd like to end up in UMM/large-cap PE.
Curious which path would maximize my chances:
- Recruit directly for 2028 PE associate roles (on- or off-cycle).
- Lateral to an EB or top BB after ~1 year, then recruit for PE.
- Attempt an internal move to M&A before recruiting.
- Something else?
Would appreciate hearing from anyone who has faced a similar decision and how things played out.
Also, on a broader level, should large-cap PE even be the goal? For those who have seen both sides, is UMM/MM PE potentially better from a long-term perspective (carry, upward mobility, lifestyle, etc.)?
Interested in optimizing for both wealth creation and overall career quality over the long run.
Thanks in advance.
No one actually cares if you’re product or coverage. It would look worse to me as an interviewer if you hopped around. Demonstrates lack of commitment. There’s a reason we give folks modeling tests as part of the interview. It’s because some coverage kids know how to model and some product kids don’t.
PE model tests ain't that hard dude, very doable and gets done every year. Just study and do modelling tests. If you are in a M&A group, you still have to study. Model tests are more of a check the box excerise anyways, nobody gets an offer because they had the best first-round model test.
Good to hear, thanks. And when it comes to speaking through deal experience in interviews, not holding pen on the model is a non-issue as long as you know how to model?
You should know the basic stats about the deal still, but no you don’t need to have owned the model. Just like how if you owned the model but don’t know anything about the business, that would get you SUPER dinged. PE associates differentiate themselves based on the quality of their work - which is both qualitative AND quantitative
Agreed on this - just know the metrics that are relevant to doing a paper lbo of that deal (revenue, revenue cagr, ebitda, ebitda margin %, capex, fcf, purchase price or where assets like this trade at). And then talk more about the actual business model and what you like about it.
Bump
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