thoughts on this? have buddies explain how shitty some politics in groups are and said you can coast and get a PE offer. But can people back channel and find out? Answer is obviously yes but how often does it happen?
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Cruising in investment banking (IB) and still landing a private equity (PE) offer is a nuanced topic. Based on the most helpful WSO content, here’s what you need to know:
Cruising in IB and PE Offers:
While it’s technically possible to "coast" in IB and still secure a PE offer, it’s not a sustainable or advisable strategy. PE recruiting is highly competitive, and firms are looking for candidates who demonstrate strong technical skills, attention to detail, and a proactive attitude. If you’re perceived as someone who’s not pulling their weight, it could hurt your reputation, especially if your work quality suffers.
Politics in Groups:
Office politics in IB groups can indeed be challenging. Some groups are more toxic than others, and navigating these dynamics is part of the job. However, coasting might make you a target for negative feedback, especially if others feel they’re picking up your slack. This could lead to poor reviews, which might impact your PE recruiting prospects.
Back-Channeling in PE Recruiting:
Yes, back-channeling happens, and it’s not uncommon. PE firms often reach out to former colleagues, mentors, or even peers to get a sense of your work ethic and reputation. If you’ve been coasting, it’s likely to come up during these informal checks. While it’s hard to quantify how often this happens, it’s a risk you shouldn’t underestimate.
How to Avoid Issues:
In summary, while some may manage to coast and still secure a PE offer, it’s a risky approach. Back-channeling is real, and a poor reputation in IB can significantly hurt your chances. It’s better to maintain a solid work ethic and focus on building a positive reputation to maximize your opportunities.
Sources: Worse than IB?, Should I leave PE after a month and go back to my MBB?, Basic Questions About PE Recruiting Answered, Lateraling PE to PE, Let's be honest about PE
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what a shitlord mentality. can't imagine anyone would want to work with someone like that.
Seen this happen a couple of times, mostly from "failing upwards." Top target, top group, mediocre performance but knowing the right people -- and still getting top PE placement. Ignore the asshat above, he sounds miserable to work for and is probably at a bucket shop
Easier in past years when you got a PE offer before you even started in IB. They could only really separate people based on GPA and school. Lots of people who decided being top bucket wasn't worth it, as long as you're not horrible no one is going to talk shit to your next firm.
Now that PE recruiting is later / most banks will require disclosure, PE firms can diligence you much more. The bottom bucket analyst who can hardly spread comps or has solely worked on marketing decks will become clear vs the top bucket analysts with either announced deals to talk about in interviews, or very far along deals that haven't quite crossed the line. And wouldn't be surprised if PE firms start doing reference checks within the banks like they used to
Once you get an offer, coast away
Have heard both takes - to enter PE a weapon by grinding in banking, or to enter PE refreshed by coasting in banking. Thoughts?
I grinded through my interview (which TBF was only a few months before my start date) and then coasted. Came into PE slightly rusty but think I caught back up quickly.
Think you can be a strong upper middle bucket performer and then coast the last few months / take as long of a break as both jobs will let you
You don't think we call your boss to reference check?
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