PE: Importance of Pedigree

Hey all,

Had a quick question. So I know PE is a lot more pedigree obsessed than IB at the associate level. Many UMM/MF won't even look at you if you don't come from a target undergrad. I was wondering, however, when you do break into PE and become an associate, does your undergrad matter more or less as you progress toward VP, Principal, and MD? In other words, if you make associate, is your progression to higher up levels within the firm solely dependent on you and your performance, or will your undergrad school continue to play a role in your advancement?

 

I'm only an associate in the LMM so can't comment with 100% accuracy but from what I've seen:

  1. Once you're in, people care less about your school and how good you are on the job. I'm a non-target, and it's never been brought up once since I've been in PE (or even IB for that matter). This will always govern.

  2. In PE, many firms require a MBA at some point. Besides for the education / network, part of the reason for it is to signal to LP's - "hey, look we're all HBS guys and you probably are too, so we must all be pretty smart and should make a lot of money together". Obviously an oversimplification, but you probably get the point.

  3. finance is a pedigree driven field. Always has been, always will be, although the internet and other characteristics have made it "easier" to get in if you're not from the "right" background.

 

I'd say banking group matters more for PE recruiting. If you're a non-target and are in [pick any group that ppl love on this site] vs. a harvard guy who went to a 10 man no name boutique, all things being equal, the non-target should have a better chance.

It's a signaling thing - "oh the non-target got into x bank/group? Must have done something special." "Why'd this harvard kid go to no name? Did they strike out during recruiting"? Not saying it is fair but this is how people think.

 

Pedigree matters, but by the time you are on "partner track" it's your MBA degree that will really matter. There are a lot of people from non-Ivy undergrads that have found their way into HBS / GSB and once there, then your undergrad matters a lot less.

 

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