Inferiority Complex in PE Recruiting

Anyone else feel a lot of inferiority when applying to PE firms? I didn't come from a particularly privileged background, faced a ton of adversity in my life and didn't go to a top target school. When I browse linkedin, it almost feels like a pipe dream for me to break into a 'top megafund' despite me being very competent amongst peers at my level (A2 at a top US BB and top team in London).

I am grinding a ton for PE, but at the back of my mind I have this feeling that 'the most prized things in this world aren't things that I get'.

Has anyone else felt this way and overcome it??

 

A few things:

  1. To start and I know it's harsh, but you really just need to take a big dose of get the fuck over it. I was first generation college, lower middle class background, lacked any "diversity" crap to help skip the line, and didn't even discover proper finance until I was a sophomore at my semi-target (originally STEM; not an Ivy but a decent top 50 undergrad business program) where I graduated with ok but not impressive grades (3.0<me<3.5).
  2. Stop obsessing over MF PE - MF PE is paradise... LOL - It's not the end-all be-all and you said yourself you're A2A at a top BB, you'll recruit perfectly fine for plenty of great funds. I didn't even do banking and managed to make my way to a solid MM firm where I'm quite comfortable.
  3. Deserving it - you deserve what you work and position yourself optimally for. You will not always get what you deserve, that's a function of luck (right place right time) and your network (something you can to some degree control). Stop focusing on the outcome and focus more on continuous self-improvement. If you're getting 1% better a week that's a compounded 68% improvement over the course of the year. 

Can't emphasize enough that MF PE is not one of "the most prized things in this world." Is it an amazing career? Absolutely. But it's not the end-all be-all for life, and there's no reason you can't have a great (in some cases better LT) career in the LMM-UMM. I'm sure someone snarky will comment and say "that's just because you couldn't make MF PE if you wanted to" and maybe they're right. The guy I work for now used to run one of the biggest groups at one of the MFs and chose to leave it after making it into those uber-coveted top ranks before they went public. Still invests money for the founders with better economics than he would've had as a partner of the firm, none of the white glove/stuffy corporate culture, all while not working 80hr+ weeks (most of the time) so I'm quite content with where I'm at. 

Biggest thing you can do is stop continuously comparing yourself to others who clearly had a different career path. It took me a couple of years to quit doing that (and I still am guilty occasionally), but once it stopped being a constant thing quality of life went up noticeably. 

"The obedient always think of themselves as virtuous rather than cowardly" - Robert A. Wilson | "If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 
Most Helpful

All income pre mid-30s unless you're killing it at some HF scoring 7/8-figure bonuses is a rounding error compared to the rest of your career. It's a fraction of the people who get into MF PE that actually have staying power, and for the firms that have gone public you will never see rising seniors have comparable career returns to the ones who took it public. The real money is made by starting your own fund and successfully scaling or joining a fund that's already on that path. Our profession by the virtue of how carry is structured is a marathon, not a sprint like in many HFs who have to worry about quarterly performance. 

"The obedient always think of themselves as virtuous rather than cowardly" - Robert A. Wilson | "If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

 I didn't even do banking and managed to make my way to a solid MM firm where I'm quite comfortable

That's very impressive. How did you do it?

 

Thank you! It's not nearly as rare as this forum would have you think, but definitely relies a bit on right time right place. I went into corp dev out of undergrad covering the same sector as my current fund so I had relevant experience to speak to, in fact I had already spoken with several companies they were actively pursuing so a little bit of serendipity definitely played a part. I also had multiple LMM PE internships from college I could use point to my interest in the PE model in general (and I'm a nerd who follows PE news for our sector so I could have a 30+ min conversation on current events w/o much difficulty). I got interviews with 3-4 different funds in the LMM-MM size range towards the end of my 2nd year in corp dev and my current fund was by far the best fit (and the only one that didn't require me to move). 

Speaking to the internships - Both experiences were unpaid which I think is something more people need to be open to doing (I had other ways to make money so it wasn't a dealbreaker for me). One I got through my school's recruiting portal and was super close to where I lived at the time so I spent several months there. The other I tracked down a founder through their post history on WSO to find their LinkedIn, reached out trying to learn about what they did, and asked if they could use a remote intern which I ended up doing for nearly a year. 

"The obedient always think of themselves as virtuous rather than cowardly" - Robert A. Wilson | "If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

A lot more diversity at MF PE than you think. Sure the majority of people came from top schools, but mix of socioeconomic backgrounds. It definitely lean towards upper class, but it differs. I’m at one of those firms from a non-target background and I went to public schools my whole life.

 

A lot more diversity at MF PE than you think. Sure the majority of people came from top schools, but mix of socioeconomic backgrounds. It definitely lean towards upper class, but it differs. I'm at one of those firms from a non-target background and I went to public schools my whole life.

Maybe in the US, probably less true for Europe though. It’s changing at the entry level, but the senior levels of this industry are still dominated by guys from relatively upper class backgrounds who attended expensive schools. Quite a few people are from very distinguished old money / aristocratic family backgrounds as well. What OP will hopefully realise is that his ability to hustle into his current position despite his socioeconomic background already makes him a far more impressive individual than any of these people who were born with silver spoons. 

 

Gotta get the fuck out of your head. You made it to a top BB group and survived your first years well enough — why would you fall back on any potential shortcomings you had before being a working professional for 3 years already? That’s just self inflicted insecurity.

Also MF isn’t the end all be all, but if you actually bust your ass with the same fervor you did to acquire your IB job — you’ll get a MF offer. You should look inward to see where your source of insecurity is coming from and why you’re inclined to put jobs/industry on some pedestal that can pass “judgement” on you. Get a spine and go get what you want — you already jumped the steepest hurdle, which is breaking into IB.

 

Fugiat possimus et ut aut quo inventore. Sunt delectus odio in consequatur. Esse aut porro ut distinctio pariatur libero est. Aperiam deserunt magni voluptate qui minima aspernatur quisquam.

Quo fugiat eveniet vel laborum nihil et sit. Deserunt aspernatur doloribus odio ullam. Quia ipsum incidunt exercitationem quia velit consequatur quia. Iusto qui est in nostrum. Corrupti eum voluptatum voluptas sequi quos accusantium.

Natus dicta ullam voluptatem doloribus ab praesentium. Blanditiis occaecati vitae suscipit id.

In et itaque quia aut id voluptas quis. Eos omnis itaque corporis et tempora quia voluptatem saepe. Temporibus voluptas sit temporibus molestiae id alias officiis. Culpa dolores officia nobis. Qui inventore laudantium ut modi eum.

Career Advancement Opportunities

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 99.0%
  • Warburg Pincus 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

May 2024 Private Equity

  • Principal (9) $653
  • Director/MD (22) $569
  • Vice President (92) $362
  • 3rd+ Year Associate (91) $281
  • 2nd Year Associate (206) $268
  • 1st Year Associate (388) $229
  • 3rd+ Year Analyst (29) $154
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (315) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
kanon's picture
kanon
98.9
8
dosk17's picture
dosk17
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”