Assuming you don't make it to MD / Partner in PE or IB (i.e. 10 year stint capping out at director / principal level) - is any path markedly better than the other?
How would comp compare? I am under the impression MF PE actually pays more in cash vs IB?
How would exits to start ups / corporate work out? Assume IB (GS/JPM/MS) has better general population name recognition vs any fund outside of BX/KKR
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MF PE kicks most associates out after 2 years, most firms promote at most 20% of associates. It's very difficult to find another PE job even from a MF associate stint; know many MF associates who could not find another PE job. IB offers a far better risk-reward outcome. If you want to stay in PE longer than 2 years, some MF PE firms are terrible roles because they don't really promote past associate level. There is a ton of MM/UMM PE firms that are better longer-term career earnings pathway than accepting a Carlyle offer for example. The best paid in PE make far more than those in IB at least for private PE firms.
Thanks - agree with this. My understanding is that the "far more than IB" part of the equation relates to carry pay-outs at a senior level. Assuming you do not stay at a fund to realise that substantial amount of carry (or it is impacted by fund perforance etc) is the cash compensation equivalent or better to that of IB? I am using MF PE as example as I suspect that cash compensation at MM PE firms is much lower (compensated with more attractive / likely carry economics)
Completely dependent on your banking firm. Again, this is not really a fair question to ask because getting the promotion to senior associate is comparatively rare than the equivalent in IB. If you are average as an associate in PE, you are out after 2 years. If you are average as an A2A you have significantly more years before getting kicked out.
Bro just get your MBA from HBS like I did
Search fund
You will learn far more in PE and there are certain corporate exits that are heavily biased towards ex PE people.
If you’re not going to stay in the industry long term, do the job where you’ll get the best training and learn the most (PE).
This is insightful, can you please share what corporate exits would reward PE experience more? If you’re familiar, what tech PE/GE funds would you take over GS TMT/MS Menlo
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