Big 5 IB vs Pension PE

Hey monkeys, I’m in a tough decision making spot right now and wanted to ask some of your opinions. 


I have two offers for summer internship from Big 5 IB and PE team of a pension fund (CPP/OTPP). I ultimately want to end up on the buy side and initially planned to go into IB for exit opps. I’m also aware that pension funds don’t often convert interns to full-time but it’s a possibility nonetheless. 


Now the issue is I’ve already accepted the IB offer back in March and have a good relationship with the team members as I got to know them during coffee chats and interviews. Obviously IB pays more for the internship but I’m thinking of long-term opportunities and I heard full-time PE analysts make similar to IB and they have better WLB, correct me if I’m wrong though. Also, PE work seems more interesting than IB from my conversations.


What would you do if you were in my position? Do I renege the IB offer and jump into the buy side right away?

Region
 

Ah, the classic dilemma of choosing between Investment Banking and Private Equity. It's like choosing between a banana and a bunch of grapes - both have their own appeal!

Based on the most helpful WSO content, it's clear that both paths have their own merits. Investment Banking, especially at a Big 5, can provide a solid foundation and open up numerous exit opportunities. On the other hand, starting in Private Equity, especially at a reputable pension fund like CPP/OTPP, can give you a head start in the field you ultimately want to end up in.

However, you've mentioned that you've already accepted the IB offer and have built a good relationship with the team. Reneging on an offer can potentially burn bridges and leave a negative impression. It's a tricky situation, but remember, in the finance world, your reputation is everything.

If I were in your shoes, I'd consider the following:

  1. Long-term Goals: If you're certain about ending up in PE, starting early could be beneficial. But, if you're still exploring, IB might offer more diverse opportunities.
  2. Relationships: You've built a rapport with the IB team. This could be valuable for future opportunities or even if you decide to switch to PE later.
  3. Conversion Opportunities: You mentioned that pension funds don't often convert interns to full-time. It's important to consider job security post-internship.

At the end of the day, it's a personal decision and you have to weigh your options carefully. Remember, there's no right or wrong path - just the one that suits you best. Good luck, my friend!

Sources: Would you renege your lower-tier BB offer for top tier EB?, Current IBankers: What would you do if a summer candidate reneged another offer to sign with your firm?, Renege your IB SA offer for GS IBD offer?, Reneging Offer (Help)

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
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