Hi - thoughts on pursuing a pre-MBA PE role out of banking at one of the Canadian Pensions (CPPIB, OTTP, OMERS) vs a tech GE investing role at a more traditional sourcing heavy role (TCV, JMI, Spectrum, BCV Growth).
Comp, exits / optionality, b-school, prestige, learning opportunities. Goal is to maximize optionality and earnings. Thank you!!
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Based on the most helpful WSO content, here's a detailed comparison between pursuing a pre-MBA PE role at one of the Canadian Pensions (CPPIB, OTTP, OMERS) versus a tech GE investing role at a traditional sourcing-heavy firm (TCV, JMI, Spectrum, BCV Growth):
Canadian Pension Direct PE Arm (CPPIB, OTTP, OMERS)
Pros: - Large Global Deals: Opportunity to work on significant global deals, including blockbuster transactions. - Promotion Opportunities: Easier to get promoted due to growing headcount, though this varies by firm. - Work-Life Balance: Generally better work-life balance compared to traditional PE firms. - Internal Mobility: Opportunities for internal mobility within investment groups and office locations. - Compensation: Higher average pay for associate-level roles compared to MM/LMM PE firms. However, compensation is capped and primarily regular income.
Cons: - Reliance on Partners: Many pension funds still rely on partners for deals and don't take control deals. - Quality of Senior Professionals: Generally lower quality of senior professionals compared to traditional PE firms. - Political Environment: Very political environment within the firms. - Pressure to Deploy Capital: Makes it harder to spend time on portfolio companies.
Tech GE Investing Role (TCV, JMI, Spectrum, BCV Growth)
Pros: - Higher Caliber Senior Professionals: Typically, these firms have higher caliber senior professionals. - More Responsibilities: Greater responsibilities and involvement in the deal process. - Learning Opportunities: Significant learning opportunities due to the hands-on nature of the role. - Exit Opportunities: Strong exit opportunities due to the prestige and network of these firms. - Compensation: Potential for higher earnings, especially with carried interest and performance bonuses.
Cons: - Work-Life Balance: Generally more demanding work-life balance compared to pension funds. - Sourcing Heavy: Requires significant effort in sourcing deals, which can be time-consuming and stressful. - Prestige: While prestigious, may not have the same global recognition as some of the largest pension funds.
Key Considerations:
Conclusion:
If your goal is to maximize optionality and earnings, a tech GE investing role at a traditional sourcing-heavy firm might be more advantageous due to the higher potential earnings, stronger exit opportunities, and significant learning experiences. However, if you value work-life balance and a more stable environment, a role at a Canadian Pension Direct PE Arm could be a better fit.
Sources: IBD vs. MM PE vs. CPPIB/ OTPP/ PSP/ CDPQ, Canadian Junior Bankers - Where are you going?, IB vs PE Pay Progression in Canada, IB -> PE -> MBA -> IB -> PE, Canada IB vs PE Comp Megathread
Im not familiar with those GE names but some Canadian pensions seem to be allocating away from DPE. Namely CPP have been cutting that group quite a bit from both existing employees to pipeline (interns, etc.). Head of PE also left and was replaced by someone who was in FoF. Obviously it will still be there but likely remains a secondary pillar for growth.
Conversely however, some pensions have done the opposite (heard BCI is aggressively moving into DPE). Just food for thought
can confirm what the above poster is saying
Have heard rumors that CPP laid off some juniors and not to mention they basically fired the entire Asia team in DPE (although that is more politics related)
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