Can someone please explain this to me?
I was recently offered a position to join the valuations desk of a MF PE Shop.
I am from a nontarget and my ultimate goal is to eventually go to a M7 program for my MBA. Would taking this BO job hinder my ability to make that transition? Also, does anyone have any numbers into how compensation is paid out in non-junior level roles? (How much associates, and Directors make).
Debating if I should take this role for the prestige or go work in a CF role for a Fortune 10 Company.
Any help is appreciated. Thanks.
MBA admissions is a lot about brands and buckets.
A lot of times, the brand of the company matters more than the role, unless there is a clear distinction in job selectivity (eg. FO is better than BO). So, working for an MF, you get the prestige of the brand, but you won't get the FO stamp. The thing is, you can get the same prestige in the eyes of Adcom if you work for a big, household name, company. Even better if it's a well known tech firm.
The next point is the bucket. At a MF, your bucket will likely be PE/IB, so a lot of FO people. Without a strong unique angle to your application, you may struggle to stand out. In CF for a Fortune 5, your bucket will probably be finance at Fortune 500, we're you'll be much more competitive and where Adcom can't really differentiate between FP&A, Controlling, Finance Operations etc.
If you're aiming for a top MBA, my suggestion would be go for the CF role (assuming this is not admin, accounting, limited exposure etc.).
Valuation is a good skill to develop indeed, but depends what you want to do after. For FO roles, it will be useful, but they may look down on your BO experience, so you need to network well to make a switch. As I mentioned above, for an MBA, it could make it more challenging.
I was in Big4 Advisory and some of my colleague went to PE valuation roles, as it was paying more and was offering a better lifestyle. After 6-12 months, they weren't too happy with their jobs, as they felt the learning curve was flat (they already had valuation skills when they joined), and it offered them limited mobility to go into an FO role.
Obviously, you should do your own research as well and see how well the F5 finance and PE valuation roles place at top MBAs. Search LinkedIn profiles for that.