MBA Class of 2023 / 2024 - do you regret it?

Was it the MBA in general or the timing that was the regret? Strictly speaking from a career point of view

Interested as well

Thank you for your perspective. Any chance i could pm you with questions?

The comp increase is a bit misleading though, because if you had stayed in PE, your comp would have probably 1.5x over that same timeframe, no?

In the LMM Generalist to CBS camp graduating in 2025. Would like to pick your brain a bit more on middle market post-MBA recruiting... can we connect?

OP here, mind if I PM u?

What firms are on a 6 year timeline to for “junior VP?” Maybe certain megafunds? That seems pretty unheard of from what I’ve observed.

Also, I agree that maximizing lifetime earnings is a function of avoiding burnout, but anecdotally, the types of people going to get an MBA are the types of people who “need a break” whereas the lifers have a much higher pain tolerance and frankly are the ones I’d put my money on to last in the industry… it’s kind of cynical but I feel like the MBA experience gives people a taste of what freedom looks like and as a result makes them less likely to commit to the PE grind. It's a bit of a generalization, but the types of people getting the MBA these days are generally less sure of themselves and have less conviction that PE long-term is right for them. 

I really liked this comment above and will add to this from the perspective of a current HSW MBA (1st year). Prior to my MBA I worked at an UMM PE firm in NYC. I 100% agree on the author's comment above that the MBA has value in helping you expand your network, make lots of friends, and keeps you "young" (especially this latter part). During my final 12-14 months I was on a couple grueling deals followed by grueling PortCo work, as the deal market dried up. During this time, I felt I lost part of my "joie de vivre" - simple things like meeting up with friends when I wanted, not having to stress about working every weekend, playing basketball on weekday nights in a rec league, and even READING books! In some ways I'm rediscovering these same things in my life that made me really happy before.

I will also add to the author's original comment that another added benefit through the MBA is that you meet really interesting people, which shouldn't be discounted by any means. People from usually many different walks of life, different cultural perspectives, many of whom are brilliant beyond measure and have never heard of an LBO before but will be successful in their own ways. This has really been a unique part of the experience so far. Now, on some of the things the author originally stated - 

1) Survivorship bias - I suspect this is partially true yes, but I'm not sure if this would have been less true 3,5,10 years ago? Perhaps a few years prior there were many former PE individuals more actively self-selecting into tech / entrepreneurship when that market was blazing hot prior to the recent crash. 

2) A) Direct promote option is more in fashion today - true and has been for a few years now . B) PE firms trying to address their diversity issue - also true. Apollo in particular has been known to do this for many cycles now and I can name a few others off hand.

I will add one more point C) Shift of MBA PE recruiting - One thing that's been really highlighted to us in our first year is the importance of internships. Oddly enough, our school set a 5-year high in internships posted / available for 1Y students, in which we had a large number of MF / UMM / MM firms post summer associate / VP opportunities as well recruit on campus / offer info sessions. This has really changed from before in which most of the Post-MBA PE recruiting happened in the 2nd year of your program, but what's really prevalent now is that many of these firms are hiring for VP seats straight through their internship programs. Also from my many conversations with the recruiting firms - the post-MBA PE recruiting landscape has turned more so into a "just-in-time" market in which firms will post roles on an as needed basis (significantly breaking patten from prior years in which it was mostly standardized around late summer / early Fall). 

3) This is obvious, no one knows if/when/how the market is going to recover. Many PE firms are making layoffs in light of missed fundraising targets, weak dealflow, and/or pressure to cut costs (especially as many of these PE firms are now publicly traded).

In summary, its early for me and perhaps this view will change but an MBA (from HSW at least) has already made an early impact for me in creating a bigger, more interesting network, meeting unique people that are shaping / challenging my perspectives, giving me that feeling of being young and enjoying my life, and helping me become a more well-rounded professional for hopefully decades to come post-MBA.

Do I worry about the PE recruiting landscape and the number of seats at "X,Y, Z shops" that I want to work at post-MBA? Yes, but that doesn't mean I'm not holding back in my preparation to meet those opportunities as they might present themselves and at the same time continue to grow through the experience. Just my 2 cents, hopefully helpful in whichever decisions people may pursue. 

My thoughts only are related to PE. Went a couple years ago, so not a direct answer to your question. Did the standard cookie cutter (Ivy, banking, PE, HSW, PE). Short answer - found MBA does expand your network, helps you make a lot of friends, and keeps you "young". Compared to direct promotes, the MBAs I know are far more willing to go on weekend trips, try and leave the office early on a Friday to see friends, and use their vacation time - on average, they all seem much more "well-rounded", happy, and less focused on work. If you want a long-term life in NYC or SF, going to MBA cements you with a large nexus of long-term city-dwelling friends. All these are soft reasons to attend, but given PE is really an attrition game, happiness/mental health = LTV of your cash comp.

With that said, some critical downsides that have impacted the classes of 2022-2024 (and will continue).

1) I would say it's survivorship bias that "people that from pedigreed backgrounds, put time into recruiting, and have a moderately high EQ have all been able to secured good finance roles", or that "as long as you keep working at it things will work out." For a reasonable portion of non-diversity candidates with PE backgrounds across HSW, either they got kicked out of PE entirely or moved to a geography/fund size they are very unhappy with. I know a decent number of people (particularly at H/W) who recruited without telling people, and when they eventually had to pivot told everyone they always wanted to be an entrepreneur / tech PM.

2) The (small) number of post-MBA roles has stayed largely the same, but there are even fewer MBA seats driven by direct promote popularity and diversity. FWIW i think both are good things to an extent, just explaining what's driving the competition). My thoughts below if you care.

2A) a lot of firms prefer the direct promote option - this often looks like an associate doing 3 years, and then 3 years as junior VP/SA, before given the reigns as a proper VP. Less risk, more time to mature.

2B) Furthermore, PE firms are trying to address their diversity issue with post-MBAs. While associate classes might look somewhat diverse from the onset, by the time the group self-selects 2-3 years into the program, they are what you'd expect demographics-wise. Funds (KKR, Apollo come to mind) use the MBA pool to re-inject diversity (this usually doesn't work and the VP/Principal levels are once again where you'd expect them to be, but I digress). 

3) The obvious one - funds are down across the board. More importantly, though, there are very few new deals entering the fray, especially in the $1-5B TEV size that drives a lot of dealmaking. New deals are where post-MBA midlevels cut their teeth, and there simply are almost no opportunities; funds don't want to carry an extra body for 1yr+ to wait for the market to turn. PE is a very myopic talent industry and funds believe they can hire talent quickly once things re-open.

If you really want to work in PE and you're not a diversity candidate, I would suggest taking a very realistic approach to your post-MBA odds at the type of fund you want to join. If you're a LMM generalist trying to move to UMM, and you got into CBS, I would suggest you're fighting an uphill battle. On the flip-side, if you're at a MF, got into HBS, and are ok with anything from high-quality MM to MF, I would 100% suggest going. 

This is spot on and unfortunately my lived experience. Class of 2022. Had some good looks only to be rejected for factors mentioned above (got direct feedback from hiring teams that I had an in with). 

I’m in a corporate role at a high growth tech company rn, so hopefully VC / growth equity opens up down the line.