Is top caliber talent still choosing to recruit for private equity?
Hey guys, I was hoping to get some advice on my current situation.
I currently have the chance of joining the analyst program at a top PE fund (think Blackstone/Warburg/Permira), as well as offers from a top BB (Citi/MS/HSBC) and a top EB (Evercore/Greenhill/HL).
Everyone around me insists that taking the PE offer is a no-brainer, but honestly, I’m not entirely convinced that's the right choice for me, for several reasons:
Throughout the recruitment process, I wasn't particularly impressed by the PE interviewers. They seemed uninspired and appeared to be in their roles simply as a natural progression post-banking, rather than from genuine passion.
The tailwinds that carried PE to its golden years over the past decade seem to be diminishing. Asset quality is dropping, and many professionals seem to be chasing a carry they'll never actually see. Passion seems critical in this field, and it doesn't feel like that’s common anymore.
Top firms typically breed excellence by surrounding juniors with apex predators from day one. However, I get the impression that today's brightest talents are increasingly skipping PE for opportunities that offer more dynamic environments—such as IB, HF, or even tech/AI startups—where there's less repetitive diligence and fewer recycled LBO models.
It also seems like LPs are now just desperate to deploy capital, pressuring megafunds into questionable deals simply to put cash to work. This makes me question the depth of analytical rigor and genuine learning opportunities available for analysts starting now.
Given these factors, I find myself, as a top performer, leaning toward the BB/EB offers. I'm curious to hear everyone's thoughts, especially from those who ditched PE for greener pastures (tech/AI startups) or rode their career as bankers.
Is PE genuinely still a pinnacle of finance? In my opinion, it is becoming the industry where second-tier talent that couldn’t get promoted in banking goes to do the exact same tasks but in a crowded path with diminishing prestige.
Are you European because us mf analyst recruiting hasn’t happened yet
The top MFs like permira accelerate recruiting for the top tier kids with returns from HSBC/HL etc
If BB offer is HSBC or EB offer is HL (M&A not Rx lol)/GHL would consider taking those, unless your MF offer is permira
1 I wouldn’t be picking a 2-3 year analyst program based on a long-term thesis around PE relative performance etc.
2 The point of these roles right out of university is training. Banking can have an edge here, as the firm structure typically is more conducive to bringing juniors up to speed.
3 There’s a world of difference between the firms you listed. MS / Evercore programs can definitely contend with some of the sponsors you listed. HL (unless restructuring) and particularly Citi/HSBC definitely not lol
shitposts used to believable on the site man
HSBC is a top BB now?
Bro tried to sneak in Evercore 🙄
Why don’t you do what you want and choose your own path? You shouldn’t care if the herd finds PE attractive or not.
Congrats on spring break
Rising interest rates, inflation, lower growth, multiple compression... there are no positives from an investment standpoint of PE as an asset class. It's not even investing; it's financial engineering. Stay the fuck away from it going forward. People hate me for saying it but the writing is on the wall. It was a great 30 years for alternatives but now that regime has ended.
Wouldn't this apply to all equity derived investing at this point save maybe RE as an inflation hedge. HM Sea Change memo was accurate from that perspective I'll give you that but you could also argue based on your points that that implies all non-credit investing is screwed and you are assuming it stays that way for a while. Not saying you are wrong just broad generalization. Definitely agree PE as an asset class is past its prime but not a bad career in the long run
Yes, this is also correct. Sell everything and put the proceeds into HY bonds lol as he notes in his memo. I know it sucks but that's the price you pay for the last ten years.
Yes, but they shouldn't.
Matt Levine wrote an interesting article some days ago about compensation at top banks vs. private equity long-term. The point is that historically bankers always made more than their clients. However, during the last decades, PE surpassed banking as it was a new industry being developed. Now that it is fully institutionalized it will go back to normality. Seniors that joined decades ago are still collecting millions in paychecks - juniors won't.
People act like PE is dying, but IB has been in a steady decline for decades lol
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