How would you categorize this experience?
I’ve been working in IB for over a year now and my experience has been what I’m assuming atypical. Most of my time has been spent working very in depth with one company under what has been tagged “strategic advisory” (includes deep dives into monthly KPIs and financials, partnership engagements including introductions modeling structure and on going relationship management. We are also their advisors on capital raises and any corporate finance related items.
I have had a handful of staffing related to m&a processes but never taken one through closing. I know that is typically the exposure people go for when trying to make the switch to PE. I understand why people search it out for PE recruiting, but from my experience there is nothing in M&A that is really challenging or intellectually hard. The only worry I have is the volume side of it where if I were not on this specific strategic advisory staffing, I would have had more exposure to different companies. The other item would be seeing negotiations and seeing why certain firms win assets and others don’t based on the bids they submit / how they present.
At times I have felt like I may be falling behind by not getting the volume of m&a reps, but the other side of it I ping pong back to is that it is not challenging to make ebitda adjustments - but it is more challenging to properly identify growth levers or operational efficiency levers.
I am also not hellbent on catering my experience to PE. I’ve tried to be where my feet are for my time in banking and make the most of it. If the end goal is to move into ownership (PE GE VC etc), does this alternative experience put me at a disadvantage. Not looking for any reassurance here just honest feedback.
Your experience in investment banking, as described, falls under a more specialized and strategic advisory role rather than the traditional M&A-heavy exposure that many associates aim for when transitioning to private equity (PE). Here's a breakdown of how your experience aligns with PE and other ownership-focused roles:
Strengths of Your Experience:
Strategic Advisory Depth:
Your work on deep dives into KPIs, financials, partnership engagements, and ongoing relationship management is highly valuable. These skills are directly transferable to PE, especially in roles that involve portfolio company management or operational improvement. Identifying growth levers and operational efficiencies is a critical aspect of value creation in PE, and your experience positions you well for this.
Capital Raising and Corporate Finance:
Advising on capital raises and corporate finance-related items gives you exposure to structuring deals and understanding the financial mechanics of businesses, which is relevant for PE, Growth Equity (GE), and even Venture Capital (VC).
Long-Term Company Focus:
Spending significant time with one company allows you to develop a deeper understanding of business operations, strategy, and execution. This is a skill that many PE professionals develop post-deal, so having it early could be an advantage.
Potential Gaps or Concerns:
Limited M&A Deal Volume:
The lack of exposure to multiple M&A processes and seeing deals through to closing could be a disadvantage for traditional PE recruiting. Many PE firms value candidates with high-volume deal experience because it demonstrates their ability to manage processes, negotiate, and understand competitive dynamics.
Negotiation and Competitive Insights:
Missing out on observing negotiations and understanding why certain firms win or lose bids could limit your perspective on deal-making strategy, which is a key component of PE.
Breadth of Exposure:
Working with a single company limits your exposure to different industries, business models, and challenges. PE firms often look for candidates who can quickly adapt to analyzing diverse companies.
Does This Put You at a Disadvantage for PE/Ownership Roles?
For Traditional PE:
Yes, to some extent. Traditional PE recruiting often favors candidates with high-volume M&A experience because it signals readiness to handle the fast-paced, deal-heavy environment of a PE associate role. However, your strategic advisory experience could still appeal to firms that value operational expertise or have a strong focus on portfolio management.
For Growth Equity or Venture Capital:
Your experience might be more aligned with GE or VC, where identifying growth levers and operational efficiencies is critical. These roles often value strategic thinking and a deep understanding of business operations over pure deal volume.
For Long-Term Ownership Goals:
If your ultimate goal is ownership (whether in PE, GE, or VC), your current experience is not a disadvantage. In fact, your focus on understanding businesses deeply and identifying value creation opportunities is a strong foundation for ownership roles.
Recommendations:
Leverage Your Unique Experience:
Highlight your strategic advisory work, operational insights, and ability to drive value creation when positioning yourself for future roles. These are differentiators that can set you apart from candidates with traditional M&A-heavy backgrounds.
Supplement Your Gaps:
If possible, seek opportunities to get involved in M&A processes, even if it's just shadowing or assisting on smaller deals. This will help round out your experience and address any concerns about deal volume.
Target the Right Firms:
Focus on PE firms that value operational expertise or have a strong portfolio management component. Growth Equity and Venture Capital firms may also be a better fit for your skill set.
Network Strategically:
Use your unique background as a conversation starter when networking. Emphasize how your experience aligns with the firm's investment strategy or operational focus.
In summary, while your experience may not fit the traditional mold for PE recruiting, it offers unique strengths that can be highly valuable in the right context. Tailoring your narrative and targeting the right opportunities will be key to leveraging your background effectively.
Sources: Q&A: Former Strategy& associate, Breakdown of Post-IB Exit Opportunities, Actual work and down time of consulting vs IBD, Moving Upstream in PE, Exit as a VP because lost interest
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