PE to IB
Was looking for some insight around the move from PE to IB with no proper experience in IB, how doable is this move?
Was looking for some insight around the move from PE to IB with no proper experience in IB, how doable is this move?
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Career Resources
Transitioning from Private Equity (PE) to Investment Banking (IB) is certainly possible, but it comes with its own set of challenges and considerations. Based on the most helpful WSO content, here’s what you need to know:
Relevance of Your PE Experience:
Your experience in a PE shop, especially one focused on real assets, can be valuable when transitioning to IB, particularly if you target groups that align with your expertise (e.g., infrastructure or real estate teams). The fact that your prospective PE team is full of ex-BB bankers could also work in your favor, as they may have connections or insights into the IB world.
Challenges Without Proper IB Experience:
Without prior IB experience, you may face skepticism from IB recruiters or teams, as they often prioritize candidates with direct transaction experience. However, your ability to perform well in modeling tests and your exposure to financial modeling in PE can help bridge this gap. You’ll need to position yourself as someone who understands the deal process and can hit the ground running.
Networking is Key:
Breaking into IB from PE will likely require aggressive networking. Leverage your connections within the PE team (especially the ex-BB bankers) and reach out to headhunters or alumni in the industry. Networking can help you bypass some of the traditional recruiting hurdles.
Targeting the Right Teams:
Focus on IB teams that align with your PE experience, such as infrastructure, real estate, or project finance groups. This alignment will make your transition more logical and increase your chances of being considered.
Timing and MBA Consideration:
If you’re considering an MBA down the line, this could be a natural pivot point to transition into IB. Many MBA programs have strong on-campus recruiting for IB roles, and your PE background would make you a competitive candidate.
Proving Your Value:
To make the move, you’ll need to demonstrate that your PE experience has equipped you with transferable skills, such as financial modeling, deal evaluation, and understanding of the transaction process. Be prepared to articulate this clearly in interviews.
In summary, while moving from PE to IB without prior IB experience is not the most common path, it is doable with the right strategy. Focus on networking, targeting relevant teams, and leveraging your PE experience to position yourself as a strong candidate.
Sources: Moving from Asset Management into IB / PE, Investment Banking to Private Equity - 6 Things You Should Know, Is BCG a viable path to Private Equity?, IB -> PE -> MBA -> IB -> PE, Transition from RE Development to REPE
Bump
Yes, just had a friend go from PE to IB nyc
Does your friend like it
They have not started yet, taking a gap to travel for a bit
Agreed, have seen a considerable amount of mid levels coming back to banking after buyside experience
Curious why you would want to make this move?
As someone's career path who follows Mid BB -> LMM PE -> Regional LMM IB, I have a little bit of insight on the path and the pro's and con's of moving back to banking. I will caveat that after my time in PE, I was not sure what I wanted to do after, but ultimately I decided to move back to my home state, which left fewer options then, If I was more geographically agnostic.
Pros:
Cons:
Overall, My life is pretty chill in banking, but I feel like I am working with a lot of people who never really grew in their career. This both excites me as I feel like I can beat out a lot of people as I climb the ranks, but it might also drive me insane trying to do so.
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