PE middle office vs BB corp
Hey guys.
Would like to seek advice on the difference career prospect of a PE middle office role VS a BB corporate banking role.
Thanks a lot!
Hey guys.
Would like to seek advice on the difference career prospect of a PE middle office role VS a BB corporate banking role.
Thanks a lot!
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Assuming that PE middle office means portfolio operations or fund accounting, then it all depends on what your career goals are. Corporate banking and working in middle office for a PE fund are two different careers. In corporate banking you'll be mostly working on credit-related deals, and on some occasions be working together with DCM. You would typically be providing revolvers, term loans, bridge loans, etc. for clients and you would not work on large M&A or IPO deals like IB does. The role is nice if you're looking for a better work-life balance, however, the consequence is that your career prospects are limited since its typically harder to exit to another finance role especially a buy-side one. PE mid-office is similar to corporate banking as the hours are better than front office, yet your main function is to support the investment teams. This may include having to compile data, weekly accounting for portfolio companies or funds, etc. at any given time for them. The downside is that you do not get any insight into how the investment process (aka sourcing a deal to execution) is done. Both roles offer very limited upside in terms of career exits for finance but can be beneficial for areas outside of it like corporate development or strategic finance. Out of the two, corporate banking would provide the most value or insight since you get to work with clients directly.
I generally agree with this analysis, but CB has decent enough exits - not comparable to IB and no MF HHs are coming for you, but certainly better than PE MO. Credit PE is fairly common and I've seen people go to smaller LMM PE shops as well. Of course, can move to IB fairly easily. And corp banking does work on a good number of M&A deals, as many BBs are providing financing which corp banking is involved with.
Corp banking is likely a better idea if you're not sure what you want and are looking for optionality. PE middle office will not give you an opportunity to move to an investing role if that is what you're after.
Thank you so much for elaborating on the exit opportunity for BB Corp bank. Do you have any ideas on the BB Corp bank ranking and their stregnths? Thanks a lot
I would look for a thread or start one in the IB forum. I'm not in CB but it seems the banks that combine IB/CB into a single group (JPM, C both do this, probably some others) tend to have decent CB exits - likely because CB ends up working fairly closely with IB
Thank u for the advice!!
Great comment. Am also curious if this is still the case given the PE firm is a really large one (e.g. Carlyle/ BX/ KKR)? Any insights on the internal mobility?
Internal mobility to investments will be even harder at those firms because their investment groups are truly elite and they will only pull from top-tier backgrounds.
BX doesn't like internal mobility at all but the other two you would likely be able to exit internally to non-investment groups
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