Breaking into PE as an IB Associate
Currently an IB Associate (post-MBA) and would like to lateral into middle market PE.
Assuming my technical skills / background are solid, could someone share advice / best practices to get into middle market PE?
Currently an IB Associate (post-MBA) and would like to lateral into middle market PE.
Assuming my technical skills / background are solid, could someone share advice / best practices to get into middle market PE?
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What's your pre-MBA background, and are you in M&A or a coverage group?
Pre-MBA background was leveraged finance at a middle market bank (5 years) and I am in a coverage group
Would say group matters a lot here. You are already at a pretty sizeable disadvantage without having had buy side experience prior to joining business school. I would expect it would be quite difficult without being in an M&A focused role / sponsors / strong levfin group. Personally I see associates that come from post-MBA sell side roles in PE very infrequently, but I wouldn't say it is a complete impossibility.
It's possible especially if you are aiming for MM PE funds. My fund has hired IB associates before...not at the same rate as analysts, but it's been done. Only thing is you'll start as an associate at the PE firm in the same way that any IB analyst would.
Depending on the nature of the group, I think this definitely is a possibility. However, as previously mentioned, it is going to depend a lot on the types of deals you interface with given that you're in coverage. Also, would reiterate that you will be set back to first year associate at almost any fund I would imagine. Thus, there is obviously a growing opportunity cost. Further, if you go LMM / most MM you would have the same compensation trajectory in banking and similar lifestyle given you'd be on the way to VP. Might be worth considering if it's worth the extra two year setback since you'd presumably be close to your thirties given the experience you've outlined.
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