PE worth it for 2 years?
Currently A2A at a top banking group - considering what I do next, any perspectives are much appreciated.
Realistically, i think I’m more aligned to doing my own thing or aiming for a c suite corporate role. More interested in building something longer term and maybe something (a bit) more meaningful.
If I move to PE, I don’t see myself staying in PE long term. Realistically, the only upside I see is potentially a slight reduction in work hours (my banking team is sweaty so can’t see hours getting worse) and thinking about businesses through a PE / investor lense. Working with PortCos could also be a great way to get exposure to managing a business (though I may be naive on what this involves).
Would the short term move to PE to then exit to start-up/corporate be worth it from a learning perspective? Feel like I would likely leave some cash on the table vs banking and would likely take a “brand downgrade” (based on perceptions outside of high finance) from my current shop.
For context, I’m in a non US geography where PE recruiting is less structured so I would still get opportunities to interview at almost all funds.
Based on the most helpful WSO content, your situation aligns with several key considerations others have faced when debating a move from banking to PE, especially with your long-term goals of building something meaningful or aiming for a corporate C-suite role.
Key Points to Consider:
Learning Perspective:
Brand and Career Trajectory:
Work-Life Balance and Compensation:
Exit Opportunities:
Recommendation:
If your primary goal is to gain operational exposure and transition to a corporate or entrepreneurial role, PE could be a stepping stone, but it’s not the only path. Consider the following: - Stay in Banking (A2A): If your current team offers strong deal flow and internal mobility, you could leverage this to transition directly into corporate or startup roles without the intermediate step of PE. - Move to PE: If you’re confident the fund you join will provide meaningful exposure to PortCos and investor-level thinking, it could be worth the move. Just ensure the fund aligns with your goals (e.g., operational focus, culture, and work-life balance). - Direct Transition to Corporate/Startup: If you’re already clear on your long-term goals, skipping PE and moving directly into a corporate development or startup role might save time and avoid the potential "brand downgrade."
Ultimately, the decision hinges on the specific opportunities available to you in PE and how well they align with your long-term aspirations. If you’re unsure, exploring PE for 1-2 years could provide clarity while keeping your options open for corporate or entrepreneurial roles.
Sources: Q&A: Leaving PE After 2.5 Years for Corporate Finance, Would you leave in this situation?, Is it worth leaving banking if I have it pretty good already, What would it take to pull you out of PE and into ops?, A2A - what has been your experience ?
sounds like you can try it out for 1 year and then decide. doesn't have to be 2 or 0
If your end goal is to get to corporate, I’d suggest you either (i) stay in IB until VP then go to a client you have a good relationship with / use your banking connections to get your foot in the door or (ii) do a couple years at a PE firm then go to the corporate side. It’s true that PE will teach you more than IB when it comes to operating a business but that’s a low bar when the comparison is IB. Majority of PE portco involvement is related to FP&A / board reporting tasks with some M&A as well. Would not expect you to get down in the weeds getting your hands dirty at most firms but depends on the shop.
Thanks - makes sense on the PortCo work. Do you reckon there’s any difference in how a corporate would value PE experience vs IB experience?
For PE portco's at the mid-level, we actually prefer PE experience over IB one, though we will consider people from both backgrounds. The idea here is basically that they'd make me more familiar working within the PE realm, and that the person is ideally aware of how the PE investors are thinking. Will caveat this by saying, we want PE experience in our industry and size; everything else doesn't get the same boost. Most of my mid-levels are either promoted or just guys who came over from the investing side of my sponsor.
Disagree heavily here as someone on the corporate side. VP is the worst place to leave IB for corporate roles because you would come in the awkward mid-level roles where you don't get anywhere near IB comp nor equity, and where at (most desirable corp dev seats) you are basically either waiting for guy above you to retire (if larger corporate) or waiting for a sponsor exit and then moving to another place as a VP/the present guy above you to either quit or get fired and take over there. I think it's much better to leave for corporate as either an ED/MD, where typically you'd be brought in as a VP/SVP of corp dev or strategy or maybe even CFO.
+SB
That makes a lot of sense. I was just guessing based on where I’m at in my career but haven’t personally known anyone senior enough to move to corp dev at VP level.
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