MF Buyside vs. EB / BB
Hi everyone, as recruiting ramps up and interviews roll in, I was wondering how I should focus my efforts. For context, worked at a boutique IB shop last summer and have a strong network positioning me for this summer, preferably in an infra / re pe or credit role but open to vanilla pe as well.
Consensus seems to be that MF buyside > IB, if it’s in an area of personal interest and a top MF (KKR / BX / APO).
The logic is that there is a much higher volume of BB / EB candidates every year, with a much narrower funnel for top MF. It’s easy to move back down to EB / BB compared making it into a top MF (especially with establishment of SA programs).
From a resume standpoint, the sheer number of IB candidates makes it a less exceptional path for potential MBA down the line.
In the past year or two, my older peers had turned down GS / EVR / PJT with this in mind, and the additional desire to build the “investor mindset” as soon as possible.
My question is, is there anything flawed with this framework? Has anything changed in the past year where BB / EB > MF if I want to stay in finance and be on the buyside eventually?
I would really appreciate any insight!
How about get the offers first?
I am progressing in later rounds / superdays for IB and at two MFs, I know this doesn’t mean I have the offer but also would be helpful insight in general regarding recruiting focus.
This is the way
1) Return rates for MF PE summer analyst programs can be abysmal (especially at KKR) and BX hovers around 60%.
2) Not all buyside programs are created equally. Figure out whether you'll be modeling, sourcing or otherwise.
3. Not all programs have a strong analyst to associate pipeline.
4. Harder to pivot industries if you build your career in an industry on the buyside.
I would recommend looking at Vista's analyst program, Bain Capital and Warburg.
Thoughts on pros/cons of those programs? Thanks!
Completely agree with the above - not all, if not most, buyside programs are created equally.
Most banking offers are still a better options over buyside. Really just a few of the MFs are clear of banking offers, particularly the ones where you are 1) at a brand name 2) with an established program and 3) doing real work (not just sourcing or something all the time. This typically is Blackstone, KKR, Warburg (no internship though), Vista, Bain, Ares, Silver Lake (discontinued?).
Each program is very reputable and clear of banking offers given the MF platform alone in most cases, but still each of those 7 programs is very unique, both logistically (return offers, associate pipeline, etc) and work (distressed investing, tech focus, generalist, etc).
Can confirm that Silver Lake's analyst and junior summer analyst programs have been discontinued
Logic makes sense. If you want to be on the buyside and manage to land a sa at a top MF, I would certainly take it over practically any banking offer, for the reasons you mentioned.
It says something about your potential if you are getting MF offers, so you will be able to re-recruit for FT or move downstream later on. I went through the typical GS / MS pipeline, but most of my peers went straight to the buyside if they had the choice.
Focus on securing your offers and then of course, the return offer. But in general, yes, most talent will funnel to the MF buyside roles first unless people don’t know what they want and are looking to stay generalist while they figure it out. There’s no wrong answer really, both will lead to great opportunities.
Would also consider demographic factors to placing on-cycle vs. MF out of undergrad.
A woman with a good GPA from a top school at GS/MS/Evercore etc. will get looks from MFs. If they choose not to go to Ares Infrastructure SA, they’ll likely be considered or prioritized for similar experiences during on-cycle.
On the other hand, a non-core and non-diverse student may have better luck during the summer SA process than on-cycle.
Great point — would also add that MF recruiting is such a shitshow. If there’s a KKR-caliber name that you are set on and you land the SA, I wouldn’t take my chances on recruiting later with the rest of the street and landing the offer again, even if you are qualified and have the “right” background. There’s a factor of luck at play that’s also out of your control in the recruitment cycle. Good luck!
Temporibus similique officiis quaerat labore et. Velit aut repellat voluptas necessitatibus voluptatem sequi harum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...