Studies suggest that while ~1% of people are psychopaths, as much as 4% of CEOs are. IBD/PE are the bosses that sit above the CEOs and make the even harder calls. As such, it would stand to reason the prevalence on Wall Street is even higher.
What do you guys think the prevalence is in IBD/PE? 10%? That would tie to my anecdotal experiences in banking/PE.
I wonder if the requirements of the job "mold" psychopaths out of otherwise decent people. Or perhaps good people learn how to "put on the mask" and act like a psychopath selectively as they need to at work, and can then disengage in their personal life. Some (not all) elements of psychopathic behavior are likely advantages in this world (charm and charisma, persuasiveness, lack of guilt, etc.)
Also, would be curious to see what the firm-to-firm level difference is in prevalence. For example, would anyone be shocked if the really brutal IBD groups and/or the particularly infamous distressed funds are even more concentrated (25%+)? Conversely perhaps LMM funds / growth equity are lower prevalence.
i am so patrick bateman sigma emotionless psychopath, but I'll cry if I don't get a front office position. I guarantee you almost no one in this job is a real psychopath, they are probably rational enough to pick something with a better trade off
You are a rising sophomore… what do you know about the industry?
Not much, but my mom works in psychiatry and what most peoples image of psychopaths is very inaccurate. I would guess that sociopaths are probably a better description for everything you've described.
Psychopaths don't last very long in an industry where integrity and reputation are everything
Ah yes integrity and reputation, first things that come to mind when you think about PE
I’d argue IB/PE is full of narcissists rather than psychopaths. Similar traits but they are different. True psychopaths who can reach the highest ranks in corporate America and stay out of jail are extremely rare.
White collared fuckers known for backstabbing
Recruiting for buyside, watch out they’ll go blabbing
Making up deadlines and crushing souls
Cold blooded creatures, hearts blacker than coal
Talking about leverage, markets and rates
Running after hookers, I guess better than Gates
PE disstrack
I think most aren’t true psychopaths but just possess beneficial dark triad traits. It’s a huge advantage in this industry to have thick skin, the ability to remove emotion from certain decisions, and a relentless desire for success, money, power.
You wouldn’t be able to execute on synergies without putting aside your empathetic shoulder angel for a sec.
Narcissism would definitely be the top symptom IMO. So many people in this industry (and IB) love to just hear themselves talk on end and opine on everything.
Other symptoms probably include being a sociopath, potentially a psychopath, and paranoid.
This
Maybe its and advantage being a psychopath; short term. What PE firms would you say have bad reputation? Do they survive?
No, definitely not. For one, psychopaths aren't generally successful. The problem they have is that they have to keep moving as more and more people figure them out. Most top level guys care about their future self, psychopaths don't and that's why they generally aren't successful. What you might be referring to is a sociopath, but still, not likely. The problem sociopaths have is that they can't control their emotions and they end up becoming very violent (because they don't care about consequences). Like someone mentioned above, what people are dealing with in these industries are extreme narcissists that know how to be somewhat likeable and cooperative.
Side note: I didn't know that extruding charm and charisma and being persuasive signals that you're a psychopath.
“IBD/PE are the bosses above the CEOs that make the even tougher calls.” Not sure i’d agree with that statement. While some PE partners are very active board members, most aren’t really making “tough calls” at portcos.
You do not work in the LMM lol. Once you get north of $50mm EBITDA, I agree with your statement.
I think you meant to say sociopaths, not psychopaths?
I think sociopaths and psychopaths share the same traits but have a few differences in aggression.
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