ÇAP/P72 vs MF PE vs GS/MS/Q tech
Have a few summer offers, would like to get thoughts. very interested in tech which is why i am even considering banking but also can't help but think that doing buyside straight out my also be a good option. Previous primary experience was in vc + pe which i honestly didn't enjoy because of the bureacracy and lack of intellectual honesty which is why i am not very looking forward to MF PE, but as always grass is always greener and would like to get people's perspective
Based on the most helpful WSO content, here's a breakdown to help you weigh your options:
GS/MS/Q Tech (Banking):
MF PE:
CAP/P72 (Buyside):
Key Considerations: - If you're passionate about tech and want to keep your options open, GS/MS/Q Tech could be a strong choice. It provides a solid foundation and flexibility for future moves. - If you're certain about staying in investing but dislike the bureaucracy of traditional PE, CAP/P72 might align better with your interests, especially if you enjoy public markets or hedge fund strategies. - MF PE is the "safe" choice for prestige and optionality, but given your previous dissatisfaction with PE, it might not be the best cultural fit.
Ultimately, it comes down to your long-term goals and what excites you most. If tech is your passion, GS/MS/Q Tech could be a great stepping stone. If you're drawn to the intellectual challenge of investing, CAP/P72 might be worth exploring further.
Sources: Any career regrets after moving from PE to public markets?, Am I missing something about buyside exits?, Technology IB Coverage Group - Exits, Interview Preparation, etc., Am I missing something about buyside exits?, https://www.wallstreetoasis.com/forum/school/got-paid-360k-do-i-go-to-bschool?customgpt=1
Bumping, one of my offers expires in 2 dsys
Rip. Guess you will be jobless at this pace since no one is responding to you
CAP/P72 if you’re looking for intellectual honesty or w/e. Work is more fun and you get paid more
You sound like you'd be better off at CAP or P72 given your view on PE which is just banking 2.0. Both are incredible programs so congrats.
Thanks! I’m curious what your views r on tech PE rn (assuming based on username)
I’m in a qualm where it seems like HFs will pay you handsomely early on if you’re very good but badly if you’re bad. And then for PE long term comp even for mid performers esp w carry seems to be pretty lucrative. But honestly I don’t like the bureaucracy of promo and lack of intellectual honesty. Do you think any PE funds r particularly good with it?
Any type of large cap investing on the private side is going to be incredibly bureaucratic, and will likely continue to trend this way. North of 50% of money raised last year was from top 6 funds I think? It’s banking 2.0 with more stress for anyone who did banking at a large bank
For non-linear career paths in finance, move down market to a smaller manager, hedge fund route, or entrepreneurship. Even then, PE is pretty dead IMO with the consolidation and lack of differentiation from most mid-market funds. Hard to see that trend not continuing in a meaningful way
You're correct I work in TMT PE currently. Not sure what you're looking for re "my views" so maybe you could be a bit more descriptive then I'd be happy to answer.
The lack of intellectual honesty piece sounds like something you read/heard somewhere and not an original thought. It doesn't really make sense. If you want to talk about lack of intellectual honesty maybe attributing it to the alternative asset class where the majority of participants talk about "uncorrelated returns" then proceed to underperform indexes isn't the place to start. What exactly do you think PE isn't "intellectually honest" about?
You'll get fired/paid poorly if you're bad anywhere that's not unique to HF, but it is true you'll earn more faster at a HF if you're good. Carry shouldn't factor into your decision because in 99% of cases that's something you won't get a whiff of until you're a decade+ into your career.
Bureaucracy is just a fact of PE. It's banking 2.0 and there's no escaping that feature unless you land somewhere unique (I actually work at once such place which is why I've stayed so long despite frankly being more interested in public markets). There's lots of it in HF too but it's just of a different kind and is IMO more tolerable on average.
MF PE especially if tech specific will set you up better to go HF later. Learn private company investing frameworks with lower beta career outcome. But you won’t like the culture.
Bump
Blatantly untrue vs CAP/P72
Am OP here can you elaborate a bit. Would like your perspective of MF -> HF vs straight in. I assume that a smart person would perform well irrespective of paths but would like your general thoughts
I am once again asking people to do what they like instead of comparing apples to oranges. Coding, algorithms, quant stuff, even the public markets in general has extremely little intersection topically and work-wise to the mechanical tasks, even at the more difficult end of technicals, that banking requires.
thanks for the advice, going to use this space to reflect.
1. Yes I'd think that I really enjoy freedom, at least in my past summers I've hated it when I'm in a super bureacratic place. I don't feel like I need the "eat what you kill" aspect since banking/PE all pay well anyways but really despise staying in the office till 12 just for optics.
2. Really in the middle - I like thinking about businesses but also tech broadly as a CS major so both work fine.
3. Not sure if this is biased once again but def would prefer the latter
4. quite a bit but also i dont want to go into work feeling super unhappy each day - if that means HFs > PE than im very happy with it
6. Both are fun but my very issue with PE is that people say oh you can cut data from so many perspectives but let's be real its very cookie cutter in many aspects. And then the issue of also covering up data because your MD wants to do a deal. I think I admire people that will say they aren't sure rather than make BS up and it feels like everyone in PE is to a large degree faking and has lack of intellectual honesty
haha, now that I've typed out all of this perhaps im leaning towards publics. I guess I'll never fully know until I've experienced it
The most important factor is are you in it because you generally enjoy finance, or are you in it for the money and prestige. Either is fine but would not go for a HF if you are in the latter bucket.
Ok 1) you must be incredibly smart, congrats on those offers, and 2) you've mentioned multiple times hating being in super bureaucratic places, which IMO instantly kills the PE and IB options
Crazy good offers, congrats.
Sounds like you would most enjoy the CAP/P72 offer. MF PE and BB IB will both be very bureaucratic.
For what its worth, I think there is a lot of value of doing IB -> PE -> whatever you want. You build a huge nest of savings, your network explodes and you can have fun for a few years in NYC. I wanted HF out of UG and very happy i went down the typical "path"
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