Is "Big4 Valuation -> PE" Reasonable?
Yes I know that this exit is possible if you network enough, but really what isn't. I'm just curious if the types of skills you build in Big 4 Valuation are transferable and attractive to PE shops.
Trending Content
Career Resources
As you noted, anything’s possible w networking, but the more natural progression would probably be valuation -> IB -> PE
Huh, that is not very intuitive to me. I would have assumed valuation skills are more immediately relevant in PE than IB. My suspicion was that someone from a more consulting-esque role (basically just client-facing) would end up in IB and more technical positions like Valuation would segue more naturally to PE. I guess that shows I don't really know what I'm talking about.
You would still need to develop the deal-process experience, soft skills, and network associated with a stint in IB.
https://www.wallstreetoasis.com/forums/is-it-possible-big-4-valuation-to-tier-1-pe
Linking to the last time it was asked. Short answer is no, valuation is better suited to middle / back office roles at funds. You don’t develop any of the deal process understanding, business diligence underwriting, or financial structuring that PE funds are looking for.
That said, it segues nicely into what IB analysts do (lots of modeling, cleaning data, and linking financial statements… analysts are much less client-facing than they’d have you believe).
Agree with the above, occasionally people will move into PE, but if that’s your end goal you’ll be much better positioned if you lateral to banking first
Valuation roles as another poster noted are great backgrounds for middle & back office roles at investment funds. Valuation skills are well suited for portfolio management roles where you’re actively monitoring portfolio companies after the investment team has executed the transaction and you become the point person in managing the asset (quarterly valuation work, interacting with auditors, helping out with amendments and workouts, etc.)
That's interesting but I'm not totally sure that's for me. I really just like the research. The process of learning about a company to develop a well-informed, holistic valuation is the appealing part, not necessarily the hard numbers. This is the first job in my professional life, and I'm honestly not an expert on anything, so do have any recommendations for setting myself up to move into a role where that is emphasized?
-
As others have noted, my recommendation would be to do 1-2 years in valuation and jump over to an IB role which should not be too difficult given the valuation experience you’re getting in your current role. After doing another 1-2 years in IB, that’d set you up very well for a PE role. Best of luck!
Dolorem suscipit sed officiis reiciendis harum rerum architecto. Molestiae incidunt maiores vel et. Quaerat laboriosam perferendis itaque architecto quam omnis et consequatur. Dolorum aut voluptas omnis. Minus in ut quia non aut mollitia et alias.
Laboriosam qui fugiat molestiae corporis qui quasi voluptas. Dicta repudiandae libero voluptatem molestias expedita vel molestiae. Ut ducimus autem tempora. Libero velit quam totam eligendi commodi aut.
Ut iste officiis libero. Cum fugiat ipsa ut molestias.
Ut qui fugit ipsa quia. In quae harum veniam unde rerum consequuntur velit. Qui rerum id quasi amet unde voluptatem quasi dolorem. Qui sequi ex ea. Molestiae est autem odit modi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...