M&A Not Sufficient?
Hi All, long time lurker here but wanted to ask PE vets for some insight.
Moved from a boutique MM M&A firm to a reputable BB M&A team a couple months ago and had a question about switching to PE. While at the MM shop, I was heavily involved in all aspects of a sell-side transaction (model, CIM, buyers outreach, closing adjustments, etc) and I made the switch to the BB for the more reputable name as PE headhunters didn't give me the time of day.
The current team I am in is a generalist program, and supports the coverage groups through holding pen on the model, and valuation, and other deal aspects and runs buy-side / sometimes sell-side deals (but most sell-sides are through the coverage teams).
When going through PE interviews, is the fact that I am not involved in all aspects of a deal like I was at the MM shop (preparing CIMs, completing outreach, etc) going to bite me in the ass when I go through PE interviews?
Thanks
Bump, currently in a similar position (prior to your move) & have been considering a few top shops that operate like this.
I see many threads discussing technical PE interviews are all about explaining/walking through deals. How does the aforementioned fair in an interview, and anyone care to shed some light on their past experience walking through a deal they didn’t do end-to-end?
Based on the most helpful WSO content, your concern is valid but manageable. Private Equity (PE) firms value candidates who have a comprehensive understanding of the deal process, and your prior experience at the MM M&A shop where you were deeply involved in all aspects of sell-side transactions is a strong asset. However, the shift to a BB M&A team, where your role is more specialized and less holistic, could raise questions during PE interviews.
To address this, focus on the following:
Highlight Your MM Experience: Emphasize the hands-on, end-to-end deal experience you gained at the MM shop. Discuss how this gave you a strong foundation in managing all aspects of a transaction, from modeling to buyer outreach and closing adjustments.
Leverage the BB Brand: The BB name carries weight, and your exposure to larger, more complex deals can be a differentiator. Frame your current role as an opportunity to deepen your technical skills and gain exposure to high-profile transactions.
Prepare for PE Interviews: Be ready to articulate how your combined experiences (MM and BB) make you a well-rounded candidate. Highlight your ability to adapt to different deal environments and your understanding of both the granular and high-level aspects of transactions.
Address the Gap Proactively: If asked about your current role's limitations, acknowledge them honestly but pivot to how your MM experience compensates for any perceived gaps. For example, you can say, "While my current role focuses more on valuation and modeling, my previous experience at the MM shop allowed me to take ownership of the entire deal process, which I believe gives me a unique perspective."
Showcase Buy-Side Thinking: PE firms care about your ability to think like an investor. Use your deal experience to demonstrate how you’ve evaluated businesses from a buy-side perspective, even if your current role is more focused on execution.
Ultimately, your MM experience combined with the BB brand can be a compelling story if positioned correctly. Be confident in your narrative and focus on how your diverse background equips you to excel in PE.
Sources: Q&A: Big4 Consulting to Private Equity, now M7 MBA, https://www.wallstreetoasis.com/forum/investment-banking/qa-md-in-ma-and-capital-markets-with-bulge-bracket-and-boutique-experience?customgpt=1, Q&A: MD in M&A and Cap Markets (Bulge Bracket and Boutique experience), Private Equity Recruiting Walkthrough – My Experience, My Private Equity Recruiting Process
bumping
No — this is the best team to be on in my opinion.
In PE I work with the IB M&A team the most closely when we sell assets, which is how we all get paid and in some ways the most important thing you do in PE although not polite to say it that way very often.
IMO, M&A is the best IB team to be on to learn:
1. How to balance the intellectually honest truth of an investment opportunity with the right commercial sense (positioning) to deliver a desired outcome — you can’t do the latter effectively and repeatably without the former — this is a lot of what PE is all about
2. How to zoom in / zoom out into details / big picture and how to reflect all of that layered thought in a complex financial model + set of outputs that either explicate the truth OR deliver an outcome — this is a lot of what the ASO/VP role is about
3. As a plus, you work with more clients and more mgmt teams than the coverage groups do over your stint, so you have to be good at accomplishing the above two goals while working with a varied set of not always the highest performance C-level and L2/3 management in the world, and you have to balance the delivery of outcomes to devilish hardo senior IB/PE people with the maintenance of friendly relations with sleepy 9-5ers — this is also central to the PE experience
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