PE B-School programs
3rd year associate at MF PE firm. Looks like business school placements have gone down the gutter with the new deans at HBS/GSB for PE folks.
At a peer fund (traditionally feeder into MBA programs), out of 8 people who applied, only 1 got HBS and 1 got GSB. Heard anecdotally only 1 at TPG Growth out of 6 got an HBS interview. A few waitlists at HBS, but a ton of folks just getting rejected outright. Looks like a lot of very strong PE folks will be going to Wharton this year.
Anyone else hear any news / can confirm placements w/ their own funds?
Bump
Is an MBA required? Seeing similar things in my UMM/MM peer group.
wow....
thats suprising. i know i can speak for BX PE, as their usually a lock for GSB/HBS but still thats really low.
Wouldn't say anywhere is a lock. Best case I've seen some funds place 75%+ into H/S (ie Bain Cap) but I know a few BX corporate PE guys who did not get into either
Bain Capital success rate is no longer anywhere near that.
true - thinks its worth noting that B Schools are definitely more competitive in times like this. When economy is booming and job market is strong, more people are not that inclined to pursue an MBA.
Yes, and likewise more direct promotes during boom times.
Also - looks like HBS waitlisted and deferred all their PE folks (other than rejections). Haven't heard of any fund get more than 1 into HBS yet from a few peer MFs
What does the class composition look like if they're taking so few finance people?
I've heard similarly, had a friend at a MF feeder to top MBA (essentially guaranteed HBS/GSB in past years) and he got pushed to next round for a possible interview.
Maybe it's the new HBS dean or something, but anecdotally it's been a hell of a shakeup at HBS this year. Looking back on it, I have no idea how I got into GSB with competition this fierce.
This is true and has been happening the past couple of cycles. Also to note the PE applicant pool has gotten much bigger / more competitive these past couple of cycles with more applicants (due to the market slowdown and many at risk of being pushed out after associate programs) in contrast to the broader applicant pool has had declining apps as a whole.
An interesting way to see this is looking at each school's admitted % from PE - what you will find is that HBS / GSB are largely the same as historical years +/- 1% delta, but Wharton has had a windfall and has experienced ~50%+ increase in incoming MBA candidates coming from PE experience. Have not looked at other schools but perhaps you could see that in the data as well.
Would this mean stronger post MBA PE recruiting from W?
No lmfao literally the opposite.
It's net neutral. Funds will go where the talent is, and at the end of the day it matters more on whether you have the right pre-MBA PE experience for post-MBA roles than the school you attend. I've seen people from W make it into MF/UMM roles post-MBA, albeit at a lower clip than say HBS historically (mainly because that's historically where the talent has been more concentrated).
You have to caveat this with the fact that many PE funds are now implementing direct promote structures and will likely face fundraising challenges in the near future so there will be less seats post-MBA. That acts as a headwind to all post-MBA PE role seekers whether they attend HBS/GSB/W.
Is it possible that B-schools have shifted preference from overwhelmingly MF PE to a blend of fund sizes? Seeing people in my network get in from MM shops I've never heard of
Yes, I'll give you two explanations.
1) Talent is more dispersed at PE firms than ever before, there are a plethora of great PE firms today ranging from LMM to MF. This makes it more likely to find qualified, well accomplished individuals at solid shops that aren't all MFs. You should also note that Adcoms think actively about diversity of class, which does include diversity of firms. It makes no sense for schools to admit "5-10 associates from MF X in NYC" as these individuals would have more or less the same experience coming in. Adcoms will diversify amongst the firms from which they accept top candidates to create a better classroom environment. Another thing to note is that associate classes have generally been larger at MFs since 2021 because of the hiring boom relative to historical class sizes, so competition within those firms will naturally increase and that's partly explaining what you're seeing today.
2) A broader point that's also being missed is on breadth of experience. So many pre-MBA PE associates have high GMAT scores, stellar academics, but more or less the same IB/PE experience - certain # of deals pursed / closed and a moderate level of PortCo work. What truly differentiates someone is on their personal story and why an MBA makes sense for them as well as unique professional experiences that stand out (i.e. working directly at a PortCo for 1+ years, leading a firmwide initiative which created real impactful change, or even leaving PE to work at a startup, etc.)
Although I will argue it still does help to be at a larger fund when applying for an MBA, by no means is it a guarantee that you will get admitted or even interviewed (no matter what people at your firm or MBA admission consultants tell you) . Do not rest on your laurels and spend time to truly differentiate yourself.
Anyone have insights on how Round 1 went for Berkshire / MDP / GTCR?
Pretty damn abysmal.
For all? Or which firms?
Has anyone heard how round 1 went for Advent Bain Cap, or NMC?
Bump on Bain cap
Not sure about final outcomes but heard sub 50% interview rate for HBS
Very strong placement for Advent, close to all 3rd years got either HBS or GSB, with others getting at least one waitlist - but definitely atypical relative to other MF peers I’ve spoken to
I think the biggest reason for acceptance rate declines is that class sizes have soared at many of these funds and talent is not nearly what it used to be several years ago. Firms like Berkshire Partners, Bain Capital, and GTCR used to be highly selective (majority were HYP + BB/EB or MBB). Now they hire Associates primarily from semi-target schools (nothing wrong with that but it implies they're less "elite" or selective) and in the case of firms like Berkshire and GTCR, they regularly hire people from MM IB. As the industry has grown and become less selective, it makes sense that MBA placements have declined.
.
It's true tbh especially if you consider outside of NAPE
I've worked at one of the names mentioned in this thread. This is partially true but misses out important facts: one, more of the HPYS crowd are not going into MBB and IB (for example - interested in tech, entrepreneurship, startups, somewhat for the lifestyle somewhat for the increasing relative prestige) so there are fewer people from those schools even in the recruiting pipeline, and two, firms are starting to realize that the hungry kid from a T30 can crush it too. Theres probably some correlation between undergrad prestige and on the job performance but it's weaker than what some of these places probably thought. The brightest people I've worked with have been a mixture of the pedigree people (4.0 from Harvard types) and the scrappy T30 types.
All of these places could fill their classes 20x with Ivy League alum if they wanted to, but the hungry kids from T30 schools with the same BB/MBB experience have been crushing the interviews now that they've had a chance. The HYPS people are sharp, so are the others.
My experience as well - hungry types from T30 crush it. I think that awareness is also why the MBA itself is now less relevant for the industry.
Does anyone know about placement for non-MBA requiring MFs?
Sample size per year is certainly much smaller due to direct promotion, but thinking Apollo, Vista, TB, and Warburg
Do you think these funds would have higher placement per capita? Since only a very small % (probably 1-2) per class apply, while having the same prestige as they are MFs
What's the latest here? How have firms done in round 2?
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