Joining PE a year early?
1st year analyst here that signed a MM PE offer a few months back to start in 2023. They recently reached out and asked if I’d be interested in starting a year early. From a pay perspective, I would start as a 2nd year analyst rather than a 1st year associate, so I would take a decent haircut compared to what I’m making in IB (given the new pay increases), but I would also be moving back to my hometown city which is probably 4x cheaper than NY / very tax-friendly. I’m also concerned about having enough closed deals during my time in IB if I leave after only a year, but then again I already have the job offer I want so I wonder if it even matters. Additionally, some of our top MDs recently left so I question if there even is good deal experience to be had in the pipeline. The reason the PE fund wants me to start early is because they’ll have just closed their largest fund ever and will obviously just need more help, so I feel that my experience there might be more valuable anyway because its a great time to join. From a lifestyle perspective, I’m pretty miserable here at the bank in terms of both culture and hours, and the PE fund has a great lifestyle, with juniors averaging probably 55 hours a week (from what I remember when I interned there in college). Anyways, I’m more excited than not to join early, I would just love to hear some thoughts on this.
Leave early 1000000%, don't look back. Congrats!
Sounds like a great opportunity to show value. Not sure how your team is comprised (in terms of size), but it would a great way to get the attention of the higher-ups.
Just my brief thoughts.
Also, if you think the fund will size well, despite the loss of MDs, you’d have an accelerated career.
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You’re right, my bad!
If you crush it, there likely is the opportunity to skip a year on the associate -> next step track as well or get outsized bonuses cause you are better than the other associates due to more experience in the seat. So summary is take it and don’t look back.
I think it is worth giving a higher weight to the additional experience you will get by staying in IB for another year. While it doesn’t sound ideal as some of the MDs have left, you have to also consider how you will perform relative to others at the PE firm who had more deal experience when they joined.
You’ll get all the positive things you listed in a year anyway.
I think it is worth giving a higher weight to the additional experience you will get by staying in IB for another year. While it doesn’t sounds ideal as some of the MDs have left, you have to also consider how you will perform relative to others at the PE firm who had more deal experience.
You’ll get all the positive things you listed in a year anyway.
Definitely leave. So many analysts are leaving at 1 year these days that it's not the resume issue it used to be, take the offer and run.
Is it a two year program or a career opportunity? First impressions matter, so if it’s a career track program where they promote the top associates you’ll really want to make a strong first impression. Which means you need to be confident in your ability to perform well from the onset. Ultimately, you know this better than anyone. If you feel you are still asking your associates too many questions, don’t have the modeling reps, aren’t good at recognizing what to do with minimal guidance then you may benefit from the extra year in IB.
If it’s a two year churn and burn to B school then get as much PE experience as you can. The PE experience is much more valuable which may seem like you should always the extra year of PE. However, landing a hometown PE job is rare so presumably you should want to stay there the rest of your career.
Take the PE offer.. 1000%
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