From PERE to PE, advices needed
I am currently working in PERE (most reputed fund you can think of). I got there because the name, teams and work life balance were very attractive. I have been in the company for almost 1 year.
However, my interest has always been more into corporate PE or VC. I realised that I should make the move now, before getting stuck forever in RE!
I just received an offer from McKinsey, and considered taking it to gain more ‘corporate knowledge’, before applying for PE.
What is your opinion on that? Anyone which shifted from REPE to PE? Would the McK offer help me to jump to PE?
Im assuming you work at Blackstone based off your comment history. Good job avoiding the Unizo deal btw...
Im younger than you, so feel free to totally ignore this advice, but I'm curious why you haven't considered lateraling within Blackstone to PE. If you like the culture and you have done a good job, I assume that would be a real possibility. Surely there have been a few real estate deals related to debt/restructing where you have worked with some people from Blackstone PE who would give you advice/recommendations. IMO, it kind of seems like you are considering McKinsey just for the name- if you eventual goal is to end up in PE, going into consulting kind of sounds like a backwards step considering you already work at the largest private equity firm.
My inexperienced advice: Sit down with your MD and have a real talk about your future. Ask him what he would recommend, and if he's a good boss and you've been a good employee, I imagine going straight to Blackstone PE is a real possibility. Any good manager would respect the fact that a young person wants to change careers and wouldn't hold it against them. (my dad is a partner in buy-side and he loves it when junior employees ask him for advice/recommendations to b-school even though they are leaving the firm)
If you want to go into VC, I don't really know and I'm from silicon valley. Mckinsey->stanford GSB would probably make the most sense but VC recruiting doesn't follow the same predictable patterns as PE/RE
I think the problem is there have maybe been less than a handful of people who've made the successful switch from RE PE to Corporate PE within BX. The move is not common at all nor is it encouraged even if you're a top preformer.
didn't know that, sorry. thats why you don't listen to the prospect. Seems weird though, I interned at another large PE/REPE firm where there were multiple analysts/associates who had moved around, only once you hit VP were you "wed" to either RE or PE for the rest of your career at the firm.
-
Former BX REPE guy here. Did my analyst years in REPE and then switched to corporate PE at associate level. Now doing growth equity at another top fund. I don't think it's quite as hard to move from RE to Corporate as you seem to think, especially with a name like BX. During my time there were at least 3-4 juniors who went from BREP to BCP/BTO within BX (I was given this option too), and a lot more who went to corporate PE / growth equity externally. Generally, it is pretty doable for someone in the investment team, but much harder for someone in asset management.
If you're in asset management, taking the McKinsey BA offer doesn't sound too bad actually - the paycut will be temporary. The best way for you to end up in corporate investing is to either restart your analyst training at MBB or IBD, or move to the acquisitions team internally. AM leasing, disposition, capex experience is just lightyears away from the skillset which corporate investors want.
If you're in acquisitions, there's a couple of steps to it.
First, gun your staffing towards 1) the big ticket take-private LBO deals; and 2) if possible, the operational stuff like hospitality, gaming, lodging, digital infra (data centers, towers etc). As you might know there are also deals which REPE co-underwrites with Corporate PE or Tac Ops, or are passed from one to the other. Those are obviously the best situations, but they also tend to be the hardest deals to get on.
Then, you just run a dual track: try to get an internal transfer to Corporate while also entering PE recruiting alongside the IB analysts. My experience with top funds is that they really hate losing people externally, especially the analysts they hired out of school, so you might be surprised. Even if you don't get the internal transfer, you're going to be pretty attractive in recruiting if you followed the above. If you were on the underwrite for a Hilton-type transaction and know what it's like to get grilled at committee by superstar investors, that puts you heads and shoulders above any M&A analyst at any bank.
Thanks for sharing your thoughts, that’s very helpful. I’m in the AM team, managed to get staffed on the some of the most renowned and interesting project, but it obviously does not matter as much as if I was in the acquisition team.
Quantitative wise, I have some technical background and kept myself up to date with extra training. Not saying that it is worth as much as someone underwriting the deals, but I’m definitely not too far off. From your experience at BX, how grilled will I get by sitting down with HR and MD to mention my desire to move or leave?
So in you’re opinion, taking McK would make it easier to jump in corporate later? The Pay cut is not an issue, came to a realisation that I’d rather make some sacrifices to get what I like than sticking to RE only for money 😉
Yes I think taking McK is path of least resistance
can you pm me please? in a similar position, made a post about this as well on the front page. have received mixed info
I’m impressed by the involvement, thanks for providing such detailed answers!
Try to pivot but otherwise banking may be a good option
I think you need to changed the company
Quo alias perspiciatis occaecati expedita magnam distinctio. Repellendus minima exercitationem laudantium similique blanditiis quis ullam. Laboriosam laborum iusto non est autem non iste. Quis et explicabo temporibus consequatur. Fuga nostrum deleniti laboriosam officiis aut quo est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...