Decision for future career - PE
Hi monkeys,
Currently in an energy team at a BB (senior analyst) and really do not want to stay in banking because of the culture and the dynamics in the team. Doing interviews for PE (not sure if its 100% what I want) but at least it is more critical thinking and more normal hours (at least Mid-market firms).
Do you think my approach is correct? I really like investing btw not that I do not want to do PE, the only thing I am "afraid" of is that I am not a modelling wizard, the rest is fine, can learn quick and got a decent amount of deal experience in my BB.
Pls let me know your thoughts!
Hey there,
Your approach seems to be on the right track. If you're not feeling the culture and dynamics of your current team, it's a good idea to explore other options. And if you're interested in investing, Private Equity (PE) could be a great fit for you.
Don't worry too much about not being a "modelling wizard". While financial modeling is an important part of PE, it's not the only skill you need. Your ability to learn quickly and your deal experience will be valuable assets.
In terms of technical prep, you might want to focus on the LBO side of things. There are plenty of resources available, including the Private Equity Interview Bootcamp and the Private Equity Master Package offered by WSO. These can help you sharpen your skills and boost your confidence.
Remember, PE is not just about crunching numbers. It's also about evaluating businesses, understanding industries, and making strategic decisions. So your critical thinking skills will definitely come in handy.
Good luck with your interviews! And remember, it's okay to take some time to figure out what you really want. After all, it's your career journey. Enjoy the ride!
Sources: Q&A: 3rd Year PE Associate ($10bn+ AUM, MBO/LBO, equity, mezz, distressed debt), My Path - MBA Banking Associate to PE, Career Bankers: Is Lifestyle and Culture More Important to You Than Prestige/Money?, Questioning my decision to go into finance. Why did you pursue banking? Legitimate answers please.
Learn to model better, it’s not rocket science.
You want a job in PE but you’re not good at the main thing they want you to be good at. Become good at it.
I would be careful to assume that the hours will be better/more normal. Highly depends on the shop, and even then, MM PE hours are probably in the 60-70 range, with deal sprints going quite hard. Feel that some people think that PE will be a chiller job, but I would argue that the stress gets worse because you're responsible for the money and no longer an advisor. Also, culture will highly depend on the shop -- places like Berkshire will have good culture, but on the other hand, you do have your H&Fs as well.
Second this, have some buddies working long hours in MM PE so definitely do your research before you make the switch.
Yes, but H&F is a megafund, and I am targeting MM sustainable infra funds (renewables and energy transition overall), so expect the hours to be a bit better.
60-70 hours seems better for me to be honest.
A lot of those funds do not have better hours than banking.
Infra is notorious for being worse that vanilla PE
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