Incoming LevFin to PE?
Hi monkeys,
Incoming LevFin analyst at a top BB in London. My internship exp is fairly varied: M&A at a US EB, European MF PE, and private credit, and I speak english + two european languages (native).
I’m looking forward to joining my team, but wanted to get a sense from people who have been through the process.
Long-term goal is to move back to PE (ideally large-cap / upper mid-market in Europe). Given my background, I’m trying to understand what the optimal strategy is from here:
- Is LevFin still a strong route into PE in the current market?
- Would it make sense to try to move internally to M&A after ~1 year, or is that unnecessary given prior experience?
- Or can I position directly for PE recruiting without needing to switch teams?
Would appreciate any honest views, especially from people who have seen LevFin → PE transitions in Europe.
Thanks
Based on the most helpful WSO content, here's what you need to know:
LevFin as a Route to PE: LevFin remains a strong route into private equity, particularly for buyout-focused roles. It provides solid exposure to leveraged buyouts (LBOs), deal structuring, and credit analysis, which are highly relevant for PE recruiting. However, some PE firms may still prefer candidates with M&A experience due to the broader deal exposure and modeling skills.
Switching to M&A: Moving internally to M&A after a year could enhance your profile, especially if you're targeting large-cap or upper mid-market PE firms that value extensive deal experience. However, given your prior M&A internship at a US EB and European MF PE experience, this may not be strictly necessary. Your background already demonstrates a well-rounded skill set.
Direct PE Recruiting from LevFin: With your diverse internship experience (M&A, MF PE, private credit) and language skills, you are well-positioned to recruit directly for PE roles without switching teams. Many PE firms value candidates from LevFin due to their familiarity with LBOs and financing structures. Focus on leveraging your network and headhunters to target the right opportunities.
Optimal Strategy:
Your background and skill set already make you a strong candidate for PE recruiting. Focus on maximizing your deal experience in LevFin and networking effectively to secure your desired role in large-cap or upper mid-market PE in Europe.
Sources: Q&A: BB LevFin - Mezzanine - Opportunistic PE, Q&A: BB LevFin - Mezzanine - Opportunistic PE, PE long-term attractivity: Is the trodden path "broken"? Quo vadis gen Y?, From Private Equity Associate to VP in Private Equity, Joining LevFin and FSG at this point in the cycle
bump
I did levfin to pe. Yes I think it is relevant, but you will be missing some stuff so be sure to self study or try and round out your knowledge base.
An ideal scenario would be to do 1 year levfin + 1 year M&A or coverage. Then you really understand credit, debt markets, etc, but also know m&a
Super helpful, thanks.
Out of curiosity, how did you personally bridge the gap when moving from LevFin to PE? Was it mostly self-study or did you get direct exposure to M&A?
Would be great to connect if you’re open to it.
I interned in PE which honestly trained me more than levfin itself. Would just overindex self study on M&A and business strategy. Maybe read some of the great books on business strategy. Do practice models.
Hi
I wanted to ask how you managed to make the switch
Did you network with the coverage team and then ask to switch at the end of Y1?
Yes you can sometimes switch groups. Just network. My firm was experimenting with rotational program for some analysts to load balance capacity but your mileage may vary.
LF at most BB's is typically nested / considered capital markets. Hence, typically the groups focus on execution, document reviews, comps and do not focus on modeling. From a previous LF cap markets analyst, I was very excited to be joining a very well respected shop and quickly realized how constrained my exit opps would be given the groups get no modeling exposure and you are working similar hours (at least in LF you are), so there is limited time to "study" outside of work. The unfortunate thing, too, is that studying how to model is very different than actually being in a deal process where you are the ASO / ANL holding pen on the model. Not trying to scare you or anything, everyone has different connections, etc., but just speaking on my experience.
Hey, thanks for sharing this, super helpful perspective.
Based on your experience, what did exit opportunities actually look like from LevFin in your case?
For context, I’ll be joining a LevFin team that is quite known for modeling and LBO exposure, so I’d expect to get decent technical reps, even if I fully agree it’s not the same as having full ownership in M&A.
Longer term, I’d ideally aim for vanilla buyout or opportunistic / hybrid capital strategies - curious how realistic you think that is from LevFin.
Would really appreciate your thoughts.
Lol, no BB in London model whatsoever, the operating and LBO sit with coverage. At best you do cash flow analysis(EU Repayment test, taking base/downside case assumption). Well the best BB- Goldman, DB and JP are all execution led
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