PE track
I know one of the most common tracks to enter into PE is 2 years in IB --> Pre-MBA Associate --> MBA --> Post-MBA Associate... but then what? If one wants to say in PE do they continue moving up the ranks to eventually (hopefully) become a partner? For those of you that are in PE or want to go into PE, what is the typical career path after becoming a Post-MBA Associate? Is PE most likely your end goal career wise?
great question. interested to see people's thoughts
At megafunds, some tracks:
BB analyst --> Pre-MBA Associate --> MBA --> Senior Associate -->Principal/etc. --> MD --> Then... Option 1: Get increasing carry on subsequent funds launched at the megafund but never make partner at the GP level. Note that a rich carry allocation on a single fund can be a really appealing option. Option 2: Make partner (extremely unlikely) Option 3: Leave to start a new firm as a founding partner
At a smaller fund, the chances of making partner are higher. The other two options still apply.
Hope this helps
Not disagreeing with Bury_Bonds, but for what its worth, much like the jump from BB analyst to PE Pre-MBA associate may take a BB class' 100-150 individuals down to 25-50 (due to differing interests, selectivity, etc.), going from Pre-MBA Associate and staying in the same profession also has the same issue of small sample size - while many would like to stay in the industry, there isn't the need for a huge layer of mid-level management in the P/E business, so each individual's career progression will depend on the specific circumstances
^ My post above assumes that you start in banking and move to PE early. You could also make the jump as a senior (and prominent) banker or as a prominent executive. By prominent executive, I mean someone with a fortune 500 C-suite pedigree, a track record of successful corporate acquisitions, and a huge rolodex. These guys sometimes launch new PE firms but just as often will join a larger shop to launch a single fund and take a rich chunk of the carry (up to 20% of the GP's carry -- so 20% of 20% or 4% of the overall carry).
See chart:
http://www.leveragedsellout.com/2007/07/breaks-in-the-track/
What do you guys thing about this path:
Buyside Credit Analyst (LBO Primary debt only - senior & sub debt - i.e. invest at closing & hold) -> MBA -> PE
Doable/realistic?
I was reading some older threads and read how, at the Pre-MBA level, most PE firms one works for two years and is out. So after your "out" and go get your MBA do you generally return to the same PE firm or apply to others?
The HugnryOne. My experience is that it depends on the firm. The situation at many firms is no you do not return after two years. Many firms openly discus when hiring that the program is two and out and if during that time period there is a need to hire for a Senior Associate/VP, the current pool will be assessed for candidates. If not, your done after two years. That said there are many other firms, often smaller, that don't abide but this formula at all. So it really just depends...
A number of shops are 2-years and then you go get your MBA. You're certainly open to pursue other opportunities once you go get your MBA -- you're never forced to return to the same shop. Some people choose to return, some shops send you to b-school with that expectation, but there are a large number of people who leave the industry or change their focus.
I'm actually surprised at the number of Associates that went through my shop and decided PE wasn't for them. I'd think that being on the buyside and making a ton of $$$ would be pretty attractive to everyone, but I've seen guys bow out even without an alternative plan.
Another thing to note is that if you don't have prior PE experience in b-school, it is tough as nails to land a PE job afterwards. IB experiences generally doesn't cut it. As a result, the filter continually knocks even those that are "on the track." However, once you achieve a PE job out of an MBA program, you've passed all the major hurdles and just need to watch out for bumps in the road at that point.
CompBanker, are you planning on staying in PE and moving up the ladder?
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