[Need your help] PE career advice
Hi all - I really wanted to break into a mid/large cap PE fund/HF and I am currently drafting a career plan. However, I am really stuck in terms of where I should spend my time/resources to achieve my goal and would like to hear your thought before I make any decision.
Intro
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Got an engineering degree from one of the T5 world's leading universities
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Started my IB/PE career at a boutique and stayed for 2 years (not a well-known shop but gained a few live deals experience)
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Now working for a family office that focuses on small/mid cap PE investments and I am going into my third year (not a well-known shop either, but gained a few buyout/co-investment experience)
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In short, 4 years experience (with CFA) and has always been based in Europe (no other European language)
Current Situation
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All key investment professionals have left the firm during the pandemic and the team is not in a good shape which will affect the firm's investment performance and my learning (I have spoken with the boss/family member, the current situation will remain in the near future)
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While I now have more responsibilities and the family likes me a lot, I wanted to work in a challenging environment where I can grow and enable me to prepare for a more senior position in the future. I also wanted to get a brand name on my belt, so I think this is the time to reflect and make a move.
Options
A) MBA/MiF (post experience) -> IB associate-> PE
B) MBA/MiF (post experience) -> PE
C) Apply direct/head hunters -> IB analyst -> PE
D) Apply direct/Head hunters -> PE/HF
E) Stay
If you were in my situation, how would you play it out? What would be your strategy? Bear in mind that we only have limited time each day, so it is very difficult to spend time on all the options, e.g. MBA applications take a lot of commitment.
Thank you so much for your time reading it, much appreciated!
IMO moving up in fund/deal size is significantly harder than vice versa, without taking somewhat of demotion (so joining as an Associate versus Senior Associate). Can't speak for European funds but pretty hard in the U.S. to go from IB Associate --> PE. At that point your comp makes the jump harder to justify and if you're doing this post-MBA, you'll be a pretty well-aged associate. Going back to being an IB analyst sounds like an even harder story to pitch in an interview.
Recruiting for lateral positions via headhunters is your best bet - made the jump myself from MM to a large cap and it was not easy.
Thank you for taking the time to reply me swagoff, much appreciated!
Age is not a key problem to me, if the IB associate is still feasible, I would still consider it, but it seems it is quite hard in the US (perhaps I think should rule out the US MBA path for now then).
Maybe I can pitch myself as a PE analyst and highlight that I prefer working in a transaction driven environment and didn't quite enjoy portfolio management - what do you think? My initial plan is to stay as a IB analyst/associate for 1 - 2 years and then move to the buyside.
Recruiting for lateral positions would be the most cost effective and ideal way for me, do you have any advice on how to go about it and execute it effectively? - E.g. source a list of PE firms and head hunters, make contacts with people who are at the firms that are currently recruiting and find out the preferred profiles that they are looking for? Or do you just apply directly on their website/Linkedin/efinancialcareers?
Thanks again in advance!
If I were you, I would pursue a dual track process: 1) apply to brand name MBA program in the US; and 2) try to recruit laterally by selling the existing PE experience you already have to the European PE shops that are of interest. I would not do MiF personally as it is typically a 1-year degree, so there will be limited opportunities for internships and career-switching. As for option 2), I would try to approach firms myself through warm intros or even cold emails as seems that you have a very good background.
Good luck!
Tamara_S, thank you for your reply and advice!
Regarding MiF, it is indeed typically a 1 year programme, but if it offers internship opportunities (more opportunities in IB than PE), would you also consider it? I think the other downside of MiF is that its brand name is not as great as MBA, and since they both compete for the same internship opportunities, where MiF can be seen as less attractive. However, the financial and time commitment is much less for MiF.
Personally, I wouldn't. I hear you but MiF - unfairly - simply does not have the same weight as the MBA in private equity. It does not have the same perception either. I have friends with MiF degrees and they really do know their finance. MiF makes sense for people studying the depths of finance, options, shorting gamma, bond convexity and who are going to hedge funds. It is such a cool degree to have for someone who is truly advancing finance, not dividing EV by EBITDA like we do in private equity.
You can still do MiF and achieve your goals. But, in my view, your life is going to be a lot simpler if you go down the MBA route. Good luck!
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