Rather go MBB -> PE or MBB -> IB -> PE?
Hey,
I am at McK in a European office currently. I always had a keen interest in finance and was torn between joining banking or MBB. Ultimately I thought consulting would give me more optionality and particularly better WLB.
Now at a point where I am seriously reconsidering if it would have better to join a corporate finance advisory / M&A firm after school. I like consulting but I've realized that I enjoy the analytical / financial statement connected studies a lot more than everything else.
Thus I am thinking about two things:
1) Trying to exit to a PE straight after MBB (super strong competition)
2) Laterling into IB and then move to PE later (very tough without MBA)
Currently I am arguing this over and over in my head. I feel like I've catched "the grass is greener on the other side" syndrom hard and romanticize banking. I have loads of friends in banking and envy them for the higher pay and the strong reputation (alas, someone who worked at e.g. Moelis/PJT/Lazard for a couple of years is seen as super legit).
Would appreciate any thoughts :)
Based on the most helpful WSO content, both paths you're considering, MBB -> PE and MBB -> IB -> PE, have their own merits. If you go the MBB -> PE route, it's noted that this is a common path, especially into strategy/PortCo performance/operating roles. It's also mentioned that MBB -> PE is quite common into investment roles. However, the competition is indeed strong. On the other hand, if you choose to go MBB -> IB -> PE, it's acknowledged that this could be tough without an MBA. However, it's also pointed out that IB is the most common and direct route to PE. In the end, it's important to consider what you enjoy and where your interests lie. If you enjoy the analytical / financial statement connected studies more, then the latter path might be more suitable for you. But remember, there's no one-size-fits-all answer here. It's about what fits you best.
Sources: Mid-tier BB vs MBB for PE, MBB to PE, Why go from BB/EB to MF?
Push
Go straight to PE. If you go MBB>IB>PE, you're almost certainly going to lose some years of career progression. If for some reason you still wanted to be on the sellside, you could easily go from PE to IB without losing career progression.
Thanks. Do you really think I could first work in Private Equity and then still become a sell side banker?
I have the feeling that career paths have become much more standardized and less open for non-standard lateral hires.
Some top bankers over here in Germany started out at e.g. McK (see Lazard's Marcus Schenck or former GS Head Alex Dibelius). I never see that happen today since all postings are either "2024 Analyst program" or Assocs with 4-5 yoe of sell side M&A experience demanded.
My perspective is entirely US based, so you should talk to someone in your region. That said, here's the US answer: bankers sell companies for a living, which means they sell a lot of companies to PE firms and PE firms are often their client (for when they sell their portfolio companies). As a result a banker who has spent a tour in the buyside would be very well equiped for success. The actual reason that you don't see it is because it's rare for someone would move from the buyside back to sellside.
But I am joining the buyside as a former consultant...
Interesting perspective nonetheless. I somehow started to fantasize abut becoming a sell side banker after completing my first year here and a lot of engagements that did not particularly interest me.
Also keen on making more money than the average MBB partner.
You will make more money than MBB in PE or IB. If you stay for the long term, you will likely make more in PE than IB. Depends on firms, fund performance, etc.
Nemo quo nemo nihil et suscipit quis. Quis quae non maiores excepturi. Voluptas voluptatem mollitia dignissimos. Omnis et sed dolorum magni et. Voluptas ad quia aut dolores qui.
Minima deserunt aperiam quia facilis reiciendis ut. Laboriosam enim qui praesentium est nam adipisci. Quos explicabo vero a. Est ut dolores earum eligendi dignissimos tenetur aperiam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...