Is PE worth it?
Is it worth doing 2 years of PE or staying in IB for a couple years to maximize near term earnings? Not sure what I want to do long term and only feel drawn to PE because of the potential learning opportunity which may increase earnings long term, but hard to swallow a paycut without that much improvement in hours
In other words, did anyone who made the jump to PE and then left anyways after 2 years as an associate derive something from their experience that led to increased long term earnings as opposed to just doing a couple years more in IB (earning more) and then exiting anyways?
Bump also curious
Bump
No, if you know you don't want to do PE long-term, banking is enough. This idea of continously taking jobs you dislike for exit opps is just silly. Do your time in banking (consider those just a few lost years of your life) and then get out and begin your real life.
Thanks I think I just needed to hear this… there isn’t any upside to sacrificing a little more in PE to get an ideal exit opportunity that IB can’t get? Or am i wrong for thinking that IB can’t get the same exit opps
What sort of next step would you be looking for? Hard to answer without that info.
Tbh idk - most likely something in corporate or something chill like FoF. I mainly just want to find something that still pays well (potential of 1M+) without having to dedicate my whole life to it
Not an expert on US, but for FoF I would think the PE experience is a big plus or maybe even a prerequisite. 1M+ comp in a corporate seems ambitious.
In the end you need to find something that makes you want to go to work, rather than just see work as something that pays your mortgage. I love my PE job. It's different every day, I have the deal adreneline from IB (but now with my own money at stake) combined with the feeling of being an (well structured) entrepreneur.
Just chasing $ will most likely not make you happy. Anything in excess of $500k p/a is just for your ego anyway.
PE made my career good instead of OK. Have done a variety of interesting things because of it. MBA, other finance jobs, etc.
Your profile needs some updating then I hope.
I certainly think it is worth it. Second year Asso at a MM PE shop and don’t get me wrong I do hate most days and will be leaving after my second years is up. However my learning in PE was exponentially more than what I learned in banking and I did think the expericne really sets you apart from people who just stay in banking. Just my opinion.
it seems there’s disagreement in the comments section behind if it’s worth it or not if you know you don’t want to stay long term - what exits did you find made your experience worth it despite hating it?
I learned a ton more in PE than I did in banking full stop. I think consensus view is if you want to prioritize learning PE > banking. If your goal is to maximize money stay in banking, and if your goal is to pivot out, I would say top priority is to figure out exactly what you want to do long term.
Doing a detour in PE for “exit opps” is a net neutral to slight negative (why did you do this instead of what you actually wanted?) IMO in this regard for the vast majority of non finance roles, and even in finance PE really only applicable to private markets roles.
The way to start figuring out what you want to do long term is to be brutally realistic about your strengths and weaknesses. If you’re not the smartest person but down to grind for years to decades, stay in banking and make more than most PE “investors” who terminally get stuck at mid-level. If you love “intellectual stimulation”, were reasonably good at banking and have a similar work ethic but want slightly more life do PE. If you want to make life changing money, go start your own thing or bet it all on red at a startup.
The longer you follow the path the more likely you are to wake up one day and wonder where the years went and why you were asleep at the wheel
This is the correct take. I’ve learned more in my 1st year in PE than my 2 years of banking. The level of responsibilities across all DD workstreams, portfolio management, engaging directly with management teams, etc. is significantly elevated (and broader) as a PE asso than a banking asso. I can’t see myself going VP in large cap buyout but I have become a far more competent and well networked professional. The tradeoff is that this job is harder and more stressful by orders of magnitude than IB. The hours can actually be worse on live deals and with much more intense work. I don’t regret my time so far in PE, even if it may not be my long term career.
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