Q&A: 1st Year Private Equity Analyst at a MF (KKR, BX, TPG, SLP, WP)
Hey everyone - this forum has served me greatly over the past couple of years and so I thought I'd give back to the community. Given the lack of info on PE Analyst programs on WSO, I thought it would be helpful if I started a Q&A. More info on myself: graduated from a target school and currently working as a 1st year analyst at a MF PE fund (one of those listed in the title) in NYC (interned there in my junior summer and went back directly after graduation). Won't answer any specific questions about my background other than that for anonymity's sake, but happy to answer any other questions about the work, lifestyle, recruiting, etc.
I had considered IBD and had offers to BB/EB's, but chose my PE offer for a couple reasons: 1) The work seemed more interesting to me as I'm passionate about investing and wanted to start in the industry right off the bat. Also thought it would give me a leg-up if I were to recruit for a HF or go to business school after (as recruiters view PE analysts more favorably given how few and difficult to get these jobs usually are) 2) Seemed like the most risk-averse option given how intense MF PE recruiting has gotten in recent years and considering I would have pursued that path had I done 2 years of banking 3) Pay and lifestyle are better at my firm (and PE generally) compared to IBD
Think this really depends on the firm. I know at least at my firm, analysts get just as involved as the associates do on deals. This results in analysts getting to run models (although the associates will usually get more reps at this given they already have 2 years of banking experience), lead various work streams, engage across all aspects of diligence, etc. The one downside is that at the end of the day, you are at the bottom of the totem pole and so will have to do some of the work that no one else wants to do (although this would be the same in IBD).
Really depends where you are on a deal process. So if we're at the early stages, we'll do a lot of higher-level research into the industry, company, P&L, and potentially building out a simple model to get comfortable with valuation/returns. If we're later along the deal process, we'll be working a lot more with advisers (bankers, lawyers, accountants, etc.), managing various work streams, and putting together decks for IC. Usually you're on 2-3 deals at a time so you'll be doing a variety of work. At the analyst level, a lot of it is power point and excel analysis, working with internal and external teams, and process management.
Assuming you're asking if HH's reached out over the summer. I did get a couple of emails from other funds who were running exclusive processes but I was really enjoying my summer and felt no need to switch. Have a couple friends at some of the top IBD groups and I got most of the same emails as they did.
I'm definitely liking the work so far, obviously it's still a grind as a 1st year and a lot to learn. I felt like I had a pretty good view on what the FT work would be like since I summered here so nothing too surprising.
The standard HH's/funds that reach out to the banks are starting to reach out, however you have to be a bit more proactive. The reason being that HH's have dealt with banking analysts and placing them into PE for decades, but PE analyst programs have only been around for the past 5-10 years or so. A lot of the people that leave the firm, often go through HH's or via networking with some HF's (think tiger cubs) that don't do formal recruiting.
Thank you for doing this. Very helpful for certain. Going straight to MF PE from Undergrad is mighty impressive :)
Thus far, have you been tasked to do modelling intensive work? Or have you been more involved on other parts of the transaction process (e.g., due diligence, drafting IOI's, research, among other Ad hoc tasks). Have you felt at any point that a 2 year stint in banking would have been helpful for you?
Tangentially, do PE analysts have the same structure as associates with respect to 2 years and out? Or do you stay on as associates until you are asked to go to business school?
In the 3-4 months I've been here, I've felt like I've gotten a pretty broad exposure to all the work responsibilities you mentioned. Do think its been a bit less modelling-intensive as I may have anticipated as the associates usually get staffed with those given they already have 2 years if banking experience (although I've been told this will pick up as I get more reps and ramp up fully). I think banking is helpful if you want a less stressful environment to learn basics (financial concepts, excel, modelling, putting together powerpoints). I never thought this would be helpful for me as I already had two summers of PE experience and didn't need the formal training.
Depends on the firm, but many will allow analysts to get promoted to the associate level or even past that. A lot of analysts however decide to leave to HF's.
All in comp is around $200K
Lol at all the monkey shit being tossed, jealousy is fucking alive in this forum. Can't you be happy for someone else's success and use that as motivation to propel you forward. Kudos OP you're killing the game and from the looks of it making the NYU students very jelly