IB -> PE -> MBA -> IB -> PE
Folks, at the risk of discussing something completely foolish, I want to get WSO's perspective about the less-than traditional path I outline in the title.
I currently work at a small buyout fund (~$250mm latest fund size). I previously worked at a "no-name" boutique IB. While I very much like my team and our platform, this isn't a place I want to be forever. I am still trying to crystalize my long-term career goals, though I have long-considered pursuing an MBA to expand my network and have a chance to recruit for a variety of new opportunities that I don't feel I would otherwise be competitive for given my background.
Additionally, I frequently wonder if there would be any upside to transitioning BACK into banking via the MBA process (with a more established IB firm) before recruiting AGAIN for PE after having better banking experience under my belt.
My thinking: as it stands, my network and professional background isn't anything special relative to your Target > EVR/CVP/LAZ/GS/JPM/MS > BX/KKR/SLP > HBS/GSB professional. While I would love to remain in PE long-term, I think it would be difficult for me to move "up-market" so to speak without "proper" banking experience at a large firm (and having the established brand name that everyone knows on my resume). In other words, I feel like doing a second IB stint at a larger firm would make me a more well-rounded candidate for better PE positions later in life. My primary concerns are: (1) I get the sense that IB candidates who are recruited post-MBA are expected to make banking a career (at least relative to analysts who are almost expected to leave after 2-3 years) - I wouldn't want to recruit for IB and grossly mislead an employer (2) post-MBA associate positions in PE are fiercely competitive - is it even feasible to do the post-MBA IB>PE route when there are already so many qualified candidates with pre-MBA PE experience? (3) Is there even an appetite at the larger IB platforms for candidates with just MM/LMM experience (in other words, why bring some LMM kid onto our mid/large-cap banking platform when there are plenty of candidates with large-cap banking, pre-MBA experience)?
I understand that a LOT of what I discuss here is contingent on career aspirations, the quality of the MBA program, etc. but I would still greatly appreciate some perspective here. Am I foolish? Shallow? Short-sighted? LMK and thank you very much for any input.
No idea on recruiting (story makes sense, but there's a sort of reflexive sense that you'd be taking a step back by going into a banking role even if it's not necessarily true) but you would probably run circles around the other post-MBA IBD associates.
Thanks for the feedback! Certainly hear you on the step backwards point of view
You will have to explain all the moves you make. Telling a story about working in IBD, then PE, then b-school, then IBD, then trying to go to PE again is going to be a very tough. To an outsider your story will make no sense. To someone you explain it to, it will seem ill-conceived — which it is.
You’re already in PE, try to get into a top 5 b-school and go back to PE if thats what you want to do. Not sure why you would fuck around and waste time in a career that does nothing for you experience-wise. It would be a complete waste of your time. Go to Wharton, or HBS, GSB, etc and then get a PE job you can see yourself at for a longer tenure.
Going from post-MBA IBD to PE is very off the run. If you can’t get yourself into Wharton and then get a PE job, I don’t know how you would get from a post-MBA associate banking job into PE. The latter is a way bigger coup.
I know it’s a very strange proposed timeline but there is a part of me that feels under-qualified relative to folks who have the tx experience, branding and networking background from working in a brand-name banking gig. I appreciate your perspective though - all great points.
No one in this industry is “qualified”, everyone is figuring it out on the fly.
There’s kids at all these megafunds that worked at MS/GS etc along with an army of other analysts, they happened to be unlucky and got dogshit banking experience with no transactions under their belt but still faked their entire way through interviews. They got jobs at top PE firms, and figured it out.
That’s what ATLEAST 50% of people in this industry are doing, top to bottom of the totem pole. Don’t count yourself out or discount your ability/credentials because of some preconceived notion or insecurity.
Thank you. Great thoughts and I think others on this site will benefit from this as well
my perspective on this is as follows. Disclosure that I don't have first-hand exposure but have spoken to a lot of people about the PE process.
first of all, if you're getting good experience and deals under your belt at your firm then that sets you up well to lateral at a similar sized firm or perhaps even slightly larger.
let say you go to an mba program (not even necessarily HSW, as Kellogg, CBS, Booth would be fine). Then you have good PE experience under your belt + the MBA credential that a lot of PE firms look for partner-track positions. If you recruit heavily for LMM/MM, including networking in advance with a ton of places, using connections, etc, you should be in a good spot. Work hard and be prepared for tons of rejections.
Also from my understanding, the first year of a post-MBA IB associate program is not fun regardless of what bank you go to and how much experience you have under your belt. Sure it would give you some credentials, and going to a reputable PE shop after a year is not unheard of, but why do that to yourself?
Also curious why you want to move up-market. my friend in a similar sized shop originally had that intention, until he saw the partner and principals cars/houses compared to their hours haha
Thanks for both comments! I agree that with a solid MBA program, I should be able to place at a similarly-sized shop. It would still require networking, relevant internship, etc. but the path certainly makes more conventional sense than the path in the title.
To your follow-up: (1) I'd like to work with larger/more interesting companies. I'm sure others here who have spent significant time in the LMM also run into LMM fatigue at some point (maybe that's just me) (2) I'd like to live in a better city - closer to friends and family. I see in your other post you accepted a 2021 offer in a tier 2 city (congrats!!); I'm currently in a tier #REF city AKA 90%+ of this website wouldn't even know what state it's in if I gave you the name. Would be nice to be in a bigger city closer to my network. I associate being in a bigger/better city (I know 'better' is relative) with needing to move "up-market" at least a little bit. I know there are exceptions (e.g. there are LMM/MM/Fundless sponsors everywhere), but that kind of undermines my first point. Was a little disheartening to relocate out of solid city away from friends to go to Nowhereville, USA. With that said, you are exactly right to bring up principal/partner purchasing power and lifestyle. Hours and lifestyle at all levels are almost unbelievably better than my friends at UMM/MF, and COL is abysmally low as well. Thankfully still getting paid close-ish to market (esp. adjusted for tax & COL) so I have been able to save a lot which is nice. It's certainly a comfier way to live than being a MF monkey, but it's also less exciting
Are you dead set on getting an MBA? Could probably skip that and try joining an EB / BB outright, then even if you get no credit as an experienced hire, by the time 2 years is up you'll have made a ton of money and learned way more than sitting in a classroom and end up in the same place / ahead of the curve compared to joining post-MBA. Then that probably makes recruiting up market in PE easier.
Interesting point and certainly something to consider. I'm no DEAD set - definitely expensive, a lot of prep required for app process, significant opportunity costs, etc. With that said, I think an MBA program is great for networking, self-branding (shallow, I know), etc. It's also a very common platform used by many younger professionals to make a career switch. I feel that most groups who are recruiting out of B school are used to seeing people use the MBA as a career-switch mechanism so the recruiting process would feel a little more natural. Also, it feels easier to recruit out of MBA than trying to network like crazy with BB/EB while also working full-time PE
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