I am beginning my second year at an elite boutique investment bank and have a kind of unique situation in terms of career trajectory that I would like input on.
The Situation: When I was in college I was accepted to a top 3 business school on a non-binding deferred admission program that gives me the option to enroll in Fall 2016 or Fall 2017, however if I choose not to enroll the offer expires.
My Question: If I ultimately want to be in PE long term, would it make more sense to try to recruit for PE and forgo business school, or go to business school in Fall 2016 and recruit for PE from there?
My Thoughts: My gut says I should follow the typical path of going IBD -> PE and hope I never need an MBA, however it seems that nearly every senior person at PE firms have an MBA from a top-tier business school. Of course it is an option to do IBD -> PE, then re-apply to business school after my second year in PE, however wouldn’t it make more sense from an opportunity cost perspective to just go to business school sooner rather than later?
Please let me know what your thoughts are. I have been thinking about this a lot and am really at the point that I need some fresh perspectives to provide additional data points.
Thanks for your input!
A common point made on this forum is that if you desire to work in PE post-MBA you need to get some PE experience pre-MBA. I'm not in your situation, but thinking logically we should be able to agree there is a drastic difference in post-MBA positions at firms in comparison to pre-MBA positions. Therefore, if you were recruiting for the post-MBA spot you will likely be up against several folks with pre-MBA PE experience. Yes, this does put you at a disadvantage since you have never done buy-side deals before. Also, much of this decision might heavily rely on what kind of PE experience you're after. Most folks will say you have no shot at getting to a megafund (my personal definition of mega is anyone who's most recent fund is over $5bn) without the pre-MBA experience. However, your chances at getting to a non-megafund might be better, although you will still face heavy competition from folks with pre-MBA PE experience. The main question here is why you desire PE long-term? Are you 100% sure about this? If so, I would forgo business school. Taking 2 years doing deals trumps the classroom. Also, you can always try PE an then re-apply to this business school. One last point I forgot to mention is that you will also be competing against senior associates for this career track positions. People who spent the last 2-3 years getting deal experience while you were in b school. I think b school without the prior PE experience is a major handicap for anyone looking to do PE post b school. Although, I am one of the guys who thinks anything is possible. You can do whatever you put your mind to.
I agree with poster above ^
Mostly agree but I would be a bit more blunt. If you have your mind set on PE on the long run taking the PE position is a no brainer. Everyone has varying opinions but realistically most people in industry know that it is an uphill battle to get a Post-MBA PE job without prior PE experience. I've read tons on it. So I guess you are in a position to choose between following the usual, tried and true path to the top in PE or having to go through an alternate process, which in the end may end up taking up more time and energy, vs for example studying for the GMAT. If I were you I would take the PE job. If there haven't been any blatant screw ups in your career since you were admitted into that MBA programs, I don't see why you wouldn't be accepted again.
Tell HBS 2+2 that you want to do 4+2 so that you will be an even stronger mba candidate and post mba hire. If you're post MBA goal is PE then you need pre MBA PE experience and if your long term career goal is PE then an MBA is unfortunately a pre-req. Not having an MBA has been a huge hindrance to me from a traditional career progression perspective but my career has been anything but traditional so no regrets on foregoing b-school for vesting.
Hey Junkbondswap,
would you be so kind as to briefly share your story?
I have been accepted to top MBA's but I have no real finance experience. I'm trying to break into IBD as an associate in London. Also, I plan to work my ass off to somehow end up in PE without pre-MBA PE experience. Were you able to break into PE with a non-traditional career path? any advice?
I think if you were a strong enough candidate to be accepted to the deferred admission program, turning the offer down to pursue real-life work experience won't put you at a disadvantage if you decide to reapply. It should also be fairly easy to craft a story for the same B-school post-PE. For example, you could just say that you wanted to experience PE before making the long-term commitment of doing it post-MBA while still having the option to go for your MBA at a later time.
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