Buyside SA Return Rates

Return rates for buyside summer analyst (SA) programs, particularly in private equity (PE), private credit, and infrastructure at megafunds (MFs), can vary significantly depending on the firm, the specific asset class, and the candidate's performance. Here's a breakdown based on the most helpful WSO content:

1. Private Equity (PE):

   • PE return rates are generally competitive but can be lower than investment banking (IB) due to the smaller class sizes and the highly selective nature of these programs.
   • Megafunds often use their SA programs as a pipeline for full-time hires, but they may not guarantee offers to all interns. Performance, cultural fit, and the firm's hiring needs play a significant role.

2. Private Credit:

   • Private credit return rates tend to be slightly higher than PE, as these roles are often seen as less "sexy" but still critical. Firms in this space value candidates who demonstrate strong analytical skills and an understanding of credit risk.
   • The growing popularity of private credit as a defensive play in volatile markets has increased demand for talent, which could positively impact return rates.

3. Infrastructure:

   • Infrastructure private equity return rates can be favorable, especially at firms with a strong focus on this asset class. However, like PE, the smaller class sizes mean fewer return offers overall.
   • Candidates with a clear understanding of infrastructure's unique characteristics (e.g., low volatility, stable cash flows, and macro-linked performance) are more likely to secure offers.

In general, buyside firms prioritize quality over quantity when extending return offers. Strong performance during the internship, a demonstrated interest in the specific asset class, and alignment with the firm's culture are key factors in securing a full-time role.

Sources: Overview of Infrastructure Private Equity, Overview of Infrastructure Private Equity, Private Equity vs Megafund Credit