Growth PE Analyst vs Return Offer from Bank
Hi everyone!
I'm having trouble deciding between full time offers right now and could use the advice. I got a return offer from a top group in a MM bank that I interned with this summer, but also got an offer from a small growth equity firm in a T1 city. I like my MM group and it has good exits over the last couple years to MM and UMM funds. I also don't study finance in college so I learned a ton this summer and know there's good training at my bank. I like the culture of my group and the hours don't seem that bad from talking to the analysts there.
The growth equity firm I have an offer from is small (maybe LMM?) and all its funds are less than a billion. The people I interviewed with all seem nice though, and its in the same city as my bank. I also like the investments they do. They promote analysts to associate too from what I know. Comp though is a good amount lower than my bank offer, base, bonus, signing are all substantially less. I also worry about the training I would get since most of my job would be sourcing unless I land a deal.
I like growth and think I could make a career out of it but I also want to end up at a bigger fund and make sure my career isn't stunted by having a bad starting point and not being trained well. What would you do in my shoes? Let me know and thanks!
The last paragraph explains it well, go for the MM option. Even though you want to do growth investing later, you’re still very early in your career and things can def change (I was for example super sold on PE until I started my IB stint and did a 180 and exited to PC - ignore my title i havent updated it in a long time). Also, the training component is extremely undervalued.
Thank you, good perspective and I'm sure my own likes and dislikes could def change too. Do you think going into growth investing right away really silos you?
Not per se, but it really depends on the brand name
Agree with above, stick with banking. This won't be your last opportunity to get into growth, and the training at these tiny funds is suspect at best.. especially a sourcing-focused gig. The banks churn dozens of analysts through the programs every year, they will train you better than some small startup-y fund where you are just doing sourcing and little real deal work.
If the offer was from your absolute dream fund, that's one thing, but it doesn't seem like it. Better to have your IB stint on the resume and then leave for this type of fund after a year or two if you desire, but the IB experience will carry you way further in interviews than just a random small fund.
Thanks! Was a bit worried since I have read on here that getting into growth is super hard unless you're at a top BB or EB tech group. The growth firm I'm talking about is not a startup fund (they've had a few funds raised already) but they just aren't very big overall. Would your opinion be different if this was an established MM growth shop?
Not really. The training and skill gap is that real.
Getting into the very top tier of growth funds is hard, but getting into growth in general - solid LMM/MM - is not that difficult.
Go do sourcing roles / growth after you are totally solid on model training, but it's just really tough to get those reps at PE shops of just about any level. Even the MFPE funds have trouble training their direct hire analysts as well as the banking ASOs who come in with them a few years later. Let alone a job they're already telling you is pretty focused on sourcing... that is not the best muscle to be spending the hours on in year 1 of your career.
If you like the group and didn’t absolute the job because of absurd hours, I’d take the banking return offer. If they have top exits, you’ll always be able to go back.
It’s also just a really tough environment to be in growth equity right now. A lot of those funds are struggling or just haven’t been deploying capital, which would make for a tough experience as a junior. Not saying it will last forever but it would be tougher to lateral if you found out you didn’t enjoy it.
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