Learning Curve from IB to PE
I'd love to hear what people struggled with for their learning curve transitioning from IB to PE and what things really helped you overcome that in the first year as a PE associate.
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Technically speaking if you did any modeling as a banking analyst you're probably going to be taking a step down in complexity.
The real learning curve is learning to use your brain. Banking analysts are not thought leaders. After two years of cranking out models and pages, you end up getting real comfortable turning your brain off and not having anyone ask you your opinion. Your MDs tell you what to do and what to think about you do it.
That all changes in PE. Suddenly you're the first person to see a CIM and you're the one making an initial recommendation. People want to hear what you think about things. Just getting over that hump is huge. You have to re-learn to think critically, effectively, and find your voice. You have to switch from a processor of information to an originator of ideas.
You need to start getting out of your comfort zone. Ask questions during investment committee, be an active participant in management meetings, and learn to be okay with being wrong. It's better to put yourself out there and have a Partner disagree with your assessment then to not put yourself out there at all. That's the biggest learning curve, I think.
I’m struggling with that part of the job right now. Any advice to think critically and be more thoughtful?
I hate to say this, but I think you need to simply be able to "think" and not only do things you're told. I would imagine that's something you can exercise as you're working on certain mandates and putting together the deck. Simply asking yourself a series of questions, from "do i like this company or not?, why would someone buy this company? where does this company fit into its industry and along the value chain?, how do i feel about the mgmt team?, etc..". Being able to graduate from just being a number cruncher to slowly forming your own opinion. You're going to be wrong sometime, as gufmo alluded to "learn to be okay with being wrong", that's the only way you're going to refine and sharpen that skill set and become more thoughtful and a critical thinker.
FYI. Some people are naturally critical thinkers and some may need a bit more hand holding to develop their critical thinking skills.
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