Leaving early for PE?
So I'm still in the interview process but pretty far in for a buyside shop that I'd really like to work for, maybe for minimum of the next 2-3 years. Approaching a year in to my IB job, and I have and still am learning a lot, but buyside has always been on my radar. Any downsides to jumping to PE; know it'll burn some bridges at my current firm given it's a 2 year analyst program, but besides that, anyone regret their move?
Clarification, is the PE firm that is hiring you actually open to immediate start (i.e., truncating your analyst program), or is this just your idea?
They are hiring for summer '25 with flexibility/preference for summer '24 start. I'm coming from a MM NYC bank.
Ah very nice. If the PE firm is okay with it, a logical step is actually for the PE firm to clear it with your bank (assuming they have some sort of ties). It will help smooth the transition/communication for you and helps avoid the firm burning any bridges with the bank (for poaching someone early).
Any chance the PE firm has mentioned an intent or openness to discussing with your shop? If not (and it's all on you), then you'll risk bristling your bank a bit, but you're certainly not the first person to leave the program early.
The partner I'd work for is probably the closest connect to my banking group which is interesting. If I get to the offer stage I supposed I could bring it up as a question to the seniors on the PE side to get their input. Would be best not to burn the bridge obviously, but didn't consider this before as a way around that. Thank you, super helpful.
Just ask the PE firm what their preference would be
If they'll have you sooner than do it. Always best to start doing the job you want as soon as possible
Good question. I see the benefits of starting a year early on the buyside, but my recommendation would still be to get the offer, finish out the rest of your program in banking and then go to the buyside. Rationale below:
1) even if the fund calls your bank to try and smooth the transition, you will inevitably still burn bridges (to some degree) with your existing team
2) would the fund payout any bonuses lost in the process of leaving early (usually if you're an early departure, your signing bonus may get clawed back and may also take a hit on your 1st / 2nd year bonus)
3) I think good Analysts take on a significant amount of additional responsibility in their 2nd year relative to their first year (more client interaction, truly holding pen on the model and marketing materials, more responsibility in running/ quarterbacking processes) with less oversight from more senior analysts or associates. Would you be getting the same responsibility at your new fund? Sure, may be earlier exposure to the buyside, but would you effectively be at the bottom of the totem pole again, but with less experience relative to the other Associate 1s in your class?
4) something on here that doesn't get mentioned often is that once you have your buyside offer and know you're leaving banking, to a degree, the stakes go down and you can take on more responsibility and make mistakes without worrying about longer term implications on your career trajectory (like you would at a fund where you way to stay long term) given you're leaving in a year.
Hey OP, just my 2c: I left my banking program a year in for PE. While the experience has been rewarding and work is more interesting, there was a steeper learning curve and I was forced into situations that in retrospect I would’ve been better equipped in handling had I gotten that 2nd year of banking training. If you are set on leaving your program early, I would make sure the PE firm understands you’re coming in with only 1 year of banking experience and can adjust their expectations accordingly.
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