Breaking in as a newly minted IB VP
First off - welcome all the customary preludes like how the window has closed and probably won’t happen. Am more interested in counterexamples and exceptions and how to follow in those footsteps.
Hypothetically, am curious what the path would look like if I were to begin working hard to make this move, especially based on what I feel is a unique, non-post MBA IB background.
Background:
Newly promoted IB VP that lateraled over with an industry focus and no MBA. Have a very deep set of expertise in my field but no prior investing experience. Most of my transaction experience is with strategics and not sponsors.
Is this move possible and even worth it for me at this point if the long-term goal is C-level at a PE-backed company or staying in finance in a banking, investing, or advisory capacity?
Ah, the classic tale of the IB VP looking to leap into the world of PE – it's like a Wall Street fairy tale with a twist. Now, let's swing through the vines of possibility and see what the jungle of finance might hold for someone in your shoes, based on the most helpful WSO content:
Unique Background Leverage: Your deep industry expertise is a golden banana in this scenario. It's not just about the transactions; it's about the depth of knowledge you bring to the table. This can be a significant advantage when looking to break into PE, especially if your expertise aligns with the sectors the PE firm invests in.
Networking: Start swinging from branch to branch in the networking jungle. Your goal is to connect with PE professionals and headhunters who specialize in PE placements. Given your VP status, you likely have a network that includes PE professionals – use it.
Positioning: You'll need to position your strategic transaction experience as a strength. While you may not have direct sponsor experience, your dealings with strategics can be framed as giving you a unique perspective on value creation and operational efficiency.
Skillset Translation: Make sure you can translate your banking skills into the PE world. This includes deep financial modeling, due diligence, and the ability to manage and close deals – all of which are highly valued in PE.
C-Level Aspirations: If your endgame is a C-level position at a PE-backed company, PE experience can be incredibly valuable. It gives you insight into how sponsors think and operate, which is crucial for leading a portfolio company.
Consider the Lateral Move: While it's more common to move from IB to PE at the pre-MBA level, it's not unheard of for VPs to make the switch. You'll need to be prepared for the possibility of coming in at a lower level than VP, depending on the PE firm's structure and needs.
The MBA Question: While you don't have an MBA, that's not necessarily a deal-breaker. Your industry expertise and VP status can offset the lack of an MBA, especially if you're targeting a PE firm that values deep sector knowledge.
The Long Game: Be prepared for a longer-term play. Building relationships and proving your value to PE firms can take time. Patience and persistence will be your allies.
Remember, while the path may be less traveled for IB VPs without an MBA, it's not impassable. You just need to find the right vines to swing on and make sure you're ready to present your case as to why you'd be a valuable asset to a PE firm. Keep your eyes on the prize, and don't be afraid to take a leap when the opportunity presents itself.
Sources: Why is MBA -> IB so accepted, but MBA -> PE is a rare occasion?, IB VP or Associate to PE -- is this a thing?, Is IB not as attractive anymore?, Q&A: PE Senior Associate from Post-MBA Banking Role, Q&A: From State School to MM IB Vice President Without an MBA
You’ll get more feedback by posting this under the IB forum.
Hey - if C suite at PE Portco is goal, don’t think you need to start out as a PE investor. Have seen several examples at my portcos where VP+ level bankers have come into head of corporate development roles. These are high intensity roles that execute tons of M&A — a core part of the value creation thesis.
So I think the path is to gun for corp dev, do a good job, then transition to CFO.
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