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Are you familiar with MS's Firm Strategy & Execution group? Any idea on the exit ops for this group (or similar internal Corp Dev/Strategy at other large IBs) into PE? There doesn't seem to be a lot of info on such groups - quite curious.
I'm going to give it to you straight, if you want to maximize your shot at PE, you're going to want to stick to the traditional IBD groups where you get more of the analytical exposure that PE firms will want you to have. The firm strategy & execution group (or most internal corp dev groups at banks for that matter) will not provide you that background, even if you are gaining the MS brand. That said, I would pick an "inferior" bank where you can get better skills, perhaps M&A at a boutique. Of course, to the extent you can move into one of the more classic banking groups at MS (or a similar bank), that should be your first choice.
What is the compensation structure/salary like for 1st year PE Associates at mega funds particularly at KKR. There seems to be more transparency for IBD/S&T but not so much for PE? Additionally, did you have to do a case study or take a modeling test for your interview with KKR?
Basically compensation is comparable to that of a 1st year associate at an investment bank, maybe a little higher. KKR base is 100k which is along the same lines of some of the other comparable mega funds (BX, Carlyle, Bain, TPG). THL pays 125k, Apollo is known to pay 140k. Some other shops are all over the place (not confirmed but heard Crestview pays 150k). On the bonus side of things, it is fairly volatile, 400k a year may have happened once upon a time, but is certainly not realistic anymore. All-in comp is probably targeted somewhere in the 250kish range for the major shops. Regarding the case study, KKR does do a case study but it is not as rigorous as everyone makes out to be. It is basically a test where you will analyze a business using the information they provide you and you will be asked to put some materials together using excel, but then you will have a conversation with an associate or principal about what you put together. The modeling exam should really be the least of your worries because if the finance is not intuitive to you at that point, you will have an even more difficult time in the interview when you are expected to think on your feet.
I think personality is typically key, there are more than enough number crunching asian monkeys from wharton (pardon my language) that could fill the ranks of all the major mega funds. They key is to not only have those same number crunching skills, but also the other skills necessary to be the full package. I think as with anything else luck plays a large role in anything, but it is important to stay focused. Although you may not land your top choice whether that be in banking or PE, if you work very hard and have your stuff in order, you will likely be able to land a pretty good banking job, and a pretty good pe job (even if that means citi and madison dearborn, instead of gs/ms, kkr/bx etc.) At the end of the day, all this shit is more or less the same and the incremental difference between shops isn't as monumental as some people on this forum make it out to be. That said, for the most part brighter people will tend to be at better shops.
Regarding my thoughts on the rat race, it is what it is. I don't think I would change anything as I recognize that I am in a fortunate spot. That said, any kid who is 3-4 years out of school and thinks he has it made just because he works in PE is a bit delusional. A career in finance really starts in the junior MD role, everyone else is a glorified slave. As far as staying in PE, I don't think it is what it once was now that many of the premier PE funds have started to go public (KKR included). They aren't the nimble organizations (with the same upside potential) that might have existed a generation ago. To be fair though, there may not be as much upside in finance in this generation as in generations past.
Thanks for the thread -- it's refreshing to see something relevant on this forum. How well are the elite boutiques (GHL/EVR/LAZ/BX) represented in the top megafunds? Do you think they are overhyped on this forum?
Appreciate it, god only knows how much filth is spewed in this forum. I've been a reader for quite some time and can't begin to explain how much misinformation is shared on this website. The elite boutiques are good for megafunds but the top groups are as follows:
GS TMT far and away #1 GS FIG / BX Restructuring MS M&A
After that, it's good to be in any of the major M&A groups (or other industry groups at GS/MS), merrill's legacy m&a group which is now in BAML is pretty good, citi M&A is pretty good, the boutiques are also good (Lazard and BX M&A are terrific although Greenhill and evercore are a step behind in recruiting, moelis also does well since UBS LA had a strong track record of placement on the west coast at tpg and kkr west coast). The fact of the matter is, if you are not in one of these groups, it is an uphill battle. If you are in one of these main groups that I've mentioned, recruiters contact you, and all you do is submit your resume, and the rest is history. I never cold called a fund once, nor do they particularly want you to call them. They know what groups they generally want to reach out to, and they go back to them year after year. Again, is this fair? No. However, it is generally a good way to fill up a class if 8-10 people because on average the kids at GS are smarter than the kids at CS and so on. It's just a fact of life. Kids from non targets absolutely do occur, but they will need to do more networking through their own senior people, or through winning the ear of headhunters. Like anything else though, once you get an interview, the playing field is fairly flat. KKR's not going to take some bumbling fool from GS tmt over some stud in UBS just because he's from a better group.
Like I said in my earlier post, banking was just more fun for a host of reasons. The shenanigans you can pull in banking just are unacceptable in PE. I would not be caught dead dozing off in PE but as an analyst in banking, there's nothing more comical than a banking analyst passed out in his seat. I will always look back at my banking experience fondly and still keep in touch with both junior and senior people that I have worked with there. The buy-side is a mixed bag, if you are working at sequoia it will be much different than KKR. Some buy-side joints are more laid back, KKR is the other extreme. The culture is more discernible when you have a group of 120 people instead of 12000 people like at a large investment bank. Although MS has a culture, it is not as cogent as KKR's. While there is a lot of cool factor with the KKR culture, it wears off fast when you realize the shit sandwich tastes the same on the buyside as the sellside. Overall though, would work at both places again in a heartbeat, the people I worked with at my times in both firms were top notch.
There is no special strategy, it's like anything else in life, stay on top of your game and just crush ruthlessly. Do not turn down interviews or count your chickens before you hatch. Work with all the search firms and cast a wide net, but also make sure to be straightforward with them about what you want (do not say you are open to working in Chicago if you are not going to do this, it is a waste of everyone's time). That said, you should interview as much as you can as the practice is good for you, especially as you build up to the more difficult interviews at the megafunds. I interviewed at several megafunds an these interviews can be prepped for, but the more preparation the better. You cannot go in to one of these interviews cold and expect to hit it out of the park, that is why it is important to interview as much and as early as you can so that you get a hang of it. Regarding the headhunters, make sure to be likable. If you're an asshole and nobody likes you, that is a big problem and it will hold you down. I mean there is only so much you can do, if you are annoying and not likable, it doesn't matter how quickly you can compute WACC in your head. The headhunters function as gatekeepers, so it is important that they like you, or else they will not put you in front of the best firms. You will have preliminary interviews with the headhunters, and although they will not be as rigorous as the real deal, they are important for making it to the next step, so you should treat them with the same respect you would treat a final round with your top choice fund, because in some ways, it is just as important.
Getting my ass kicked on a weekly basis was terrific preparation. Seriously. Look, any one of these bulge bracket ibanking jobs will adequately train you to be the finest number crunching slave money can buy. MS or GS or JPM or whatever, they'll give you the experience you need.
You wanted honest advice. If you don't go on facebook everyday you're just weird.
My gf wanted me to ask you these:
What is KKR policy on flex-time/part-time? When would I qualify?
Does KKR have a Woman's Initiative Program/Working Mothers Program? Deloitte has a program in place that allows women to leave the workforce for as long as they want (1-5 years) and still be able to hold their position within the firm. When they come back, they can decide if they want to work part-time or flex-time and progress within the firm that way. Deloitte would sometimes even let you work at home. Does KKR have the same fort of program?
When is KKR going to go entirely paper-less?
Do you feel like KKR's lack of technology is slowing down your development and progress in your career?
I have heard that KKR is at the bottom of the Megafunds and might be fading away after the controversy a couple of years back. I have also heard that KKR is losing their investors like mad due to excessive and unnecessary fees from lack of technology among other things. What are your thoughts on these comment?
What did you like most about working in the KKR NY office? The people? The hours?
Could you tell me again about how many hours a week you worked during busy season?
How many hours a week you worked the rest of the year at KKR?
What is KKR employee turnover rate?
Over half of these questions are retarded so i am not going to answer any of them.