Need Advice From Current PE Associates
Keeping it short – about to wrap up 3rd year in IB coverage. I know I have the A2A offer locked in. My work life balance is very strong, hardly work weekends and late nights are not very frequent. I’m at an upper middle market bank (HL / JEF / Baird).
I’m very sick of the work - I’m finding it super boring, unfulfilling, and frankly just not stimulating. Feel like I’m just not reaching my potential. I’m considering a late exit to PE because of this.
My question to you PE folks: am I just going to run into the same sh*t in PE after a year or two? Should I just enjoy the green grass and keep marching along? My worry is limited options in a few years when I’m fully sick of IB and want to do something else – options feel limited post associate years. Any advice is appreciated.
hey man in similar boat but unsure of A2A. Haven't been communicated when analysts will find out about associate jump. when do they signal whether you're getting the associated bump?
For my firm I heard it’s some time in March
Can ignore my title as I’m currently in PE and had the same situation (got A2A and had a spot as an Associate. Gotta look at it from pros and cons:
Pros (moving to PE)
- work is more stimulating (ex: instead of building a CIM where you make everything positive and don’t really know what the company does, have to be able to understand product differentiation, market landscape, etc in PE)
- also the case in banking, but for PE even more so working with the best and brightest (usually top rated bankers and consultants)
- compensation much higher in longer term (factoring in carry and if you survive the grind)
- allows flexibility of exit opps, even more so than banking (don’t like buyout, move to growth or vc; work in industry at a company, etc)
Cons / Things to Consider:
- WLB is essentially the same - can be better or worse depending on fund; especially if going to MF or UMM, hours can get worse
- while hours are the same / wash, the intensity of those hours is much higher; less hand holding and less layers means you have ownership over a lot of the execution work, which can create stress (ex: if there’s a massive bust in the model, it’s on you)
- culture is not the same as IB (also fund dependent); from my limited experience, people are more eager to get in / out and get their work done, vs IB where people generally hung around, analysts bonded at night while waiting for comments, etc. Can lead to sometimes feelings of isolation
- You are effectively starting over in terms of your reputation, so will need to prove yourself to a new firm (whereas you have established credibility at your banking job)
The most important thing to diligence as you’re going through is the culture and team you would be working for, should you want to make the jump to PE. It’s not like banking where there’s generally a standard experience, as there’s a lot of variability in PE experiences as a junior member across funds.
Hope this helps (realize I’m now rambling…)
This is great, appreciate your insights
This is spot on.
At the risk of being repetitive -- quick additions are:
Added a lot of pros and cons above, depending on your viewpoint. Ultimately, I think the answer comes down to what you are passionate about. If you truly are a deal junkie or are highly motivated by Prestige / comp, you will fit in and do well in PE (nothing wrong with that). If you *like* the job but don't *love* the job, I'd say your days in PE are similarly numbered and you'll eventually get to a spot where you seem to be now in IB. So, if you find yourself wanting to make a career in finance, likely worth it to switch. If not (and you just want to work a few more years to build up a nest egg / savings / go to B-School), likely worth it to stay at your IB a few more years where you already seem to have a good reputation and handle on the job. If you switch jobs, you'll lose that reputation and have to spend 6+ months building up goodwill, which is something to consider. At the end of the day, it's about longevity in this industry.
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