MBA to IB to PE
I am currently working for a Structured Finance advisory group in one of the Big 4 Accounting firms and want to eventually transition into Private Equity. Although I have experience modeling while performing analytics alongside my banking counterparts (when the deals were still moving, that is), I do not have specific IB experience that PE shops seem to want.
I have recently been accepted to UofC's Booth School of Business and will be attending this fall. I understand that going directly into PE from B-School is virtually impossible without prior PE experience. However, assuming I land at a top bank out of school and work there for two years, is a jump to PE doable? After two years of banking, I will be 34 years old, so I'm not sure whether that would be another deterrent for a hiring firm.
Thanks in advance!
would like to hear some thoughts on the subject myself.
MeddlingKid,
This is going to be a challenge for you. With no transactional experience, you're behind. Luckily, Chicago is a great school and places well on Wall Street. The problem you encounter is that a lot of PE firms hire post-MBA straight from b-school or from other PE firms. When they do this, the one thing key thing they look for is PE experience prior to b-school. Coming from an advisory group, you're going to lack that transactional experience that is also key. This will be mitigated if you land an associate position at a solid IB job out of b-school, but doesn't completely satisfy the requirement. Age is also going to play against you. Plus, as an associate you're expected to be in it at the IB for the long haul, so you won't exactly be able to ask senior guys for recommendations like you would as an analyst. All that said, it is still possible, so don't give up. Just continue to work hard and be realistic -- you may need to be flexible on geography and PE shop size in order to achieve your goals.
~~~~~~~~~~~ CompBanker
Thank you for the informative reply, CompBanker.
I don't think age is a huge issue with the right background and experience. I've seen plenty of associates make it to the buyside after a couple years in banking. Alot of these associates were in groups like Financial Sponsors, though - and it was a frothy hiring environment. It's tough to say what your chances are like today or 4 years from now. One thing is for sure, you'll be more attractive to PE with IB experience so focus on getting into IB from B-school and if by some chance you get a PE interview from B-school recruiting then all the better.
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