MM PE or BB

Based on the WSO Dataset, the decision between moving to a tier 1.5/2 PE shop (like Marlin, aKKR, Spectrum) or staying at a non-tier 1 BB (such as Barclays, Wells, DB) as an associate often hinges on individual career goals, interests in the type of work, and lifestyle preferences. Here are some considerations:

1. Career Trajectory and Exit Opportunities: Moving to a PE shop, even if it's considered tier 1.5/2, can offer a different set of exit opportunities and career growth paths compared to staying in investment banking. PE roles often provide more direct involvement in the operational and strategic aspects of portfolio companies, which can be appealing for those interested in a more hands-on investment role.

2. Work-Life Balance: While work-life balance can vary widely within the PE industry, some may find that certain PE shops offer a marginally better lifestyle compared to the demanding hours often associated with investment banking. However, this is not a rule, and due diligence on the specific firm's culture and expectations is crucial.

3. Compensation: Compensation trajectories can differ between PE and IB. While both paths can be lucrative, the compensation structure in PE might include a more significant portion of performance-based bonuses and carried interest, potentially leading to higher earnings in the long run, depending on the success of the investments.

4. Interest in Investing vs. Advisory Work: This decision could also come down to a preference between the investing side of finance, which involves acquiring and managing equity stakes in companies, versus the advisory and transactional nature of investment banking. Those more interested in the end-to-end process of investing might lean towards PE.

5. Firm Reputation and Network: While Barclays, Wells, and DB are reputable BBs, moving to a recognized PE shop like Marlin, aKKR, or Spectrum can also add valuable brand names to one's resume. The network and reputation of the firm in the industry could play a significant role in future career opportunities.

Ultimately, the choice between staying at a BB as an associate or moving to a tier 1.5/2 PE shop should align with one's long-term career objectives, personal interests in the type of work, and lifestyle preferences.

Sources: Mid-tier BB vs MBB for PE, Which MBB is best for PE Recruiting?, Q&A 2.0: 3rd Year BA/A/AC At MBB Going To UMM/MF This Summer, IB or PE has easier upward mobility? Compensation?, Prefer Elite Boutiques or Bulge Brackets?