Struggling Learning the Concepts Because of AI and Tight Turnarounds
Hi chimps,
Recently started a new gig at a PE shop and came from a non-IB background. I am still very new to the role, and I feel like I am not really "learning" anything (Honestly, I probably am; however, I just don't feel as competant as other analysts/associates right now). Our firm is also pretty heavily investing in AI. Deal flow has been so intense, and MDs want things turned around yesterday, and it has gotten to the point where I am basically an AI reviewer because sitting down and actually learning the concepts/looking over documents takes too long. Feel like I am doing what other similar level people at our firm are doing, as I am not the only one leaning heavily into AI.
I want to preface that I am putting in work outside of working hours and asking questions; however, it is hard not to ask Claude to create a waterfall, give commentary, or figure out what diligence questions to ask when the timing of these deals seems so tight. I get so much material for each deal that I feel like I am being forced to really lean heavily on AI simply due to speed and optimization.
Maybe this is just a case of imposter syndrome, as everyone has had good things to say about me and my work. However, I feel like everyone else at the firm just "gets it", whereas I am more faking it (albiet successfully so far)?
Anyone else feel the same way at the junior level? If you have some experience, what is the best way to really learn the industry/concepts? Thinking that the more reps I do the better I will get, as I experienced a steep learning curve at my last job and was regarded as a high performer before I left.
Your experience is not abnormal, especially if you aren’t coming from a banking background. The learning curve when you first start is steep and it’s understandable to feel overwhelmed, as you will be asked to run analysis or complete ad hoc portco tasks that most people in your position would be doing for the first time. I’d also add that I agree with your AI take and believe we’re still at a point where the rise of new tools helps expedite a number of tedious tasks while also greatly increasing expectations from seniors.
With that said, you’d be doing yourself a disservice by not trying to understand the WHY and actual mechanics of what you’re doing, at least after the fact if time is an issue. This may sound crazy today but when I was an associate ~2 yrs ago we had to build every model, even when plenty of firms were already using model generators that just allowed you to plug in assumptions before spitting out a model & returns analysis. It’s much faster and the model output is never going to be truly accurate to reality, but I appreciated truly understanding the impact that every single financial statement change could have on “what we needed to believe to be true.”
So, sorry if this wasn’t the answer you wanted to hear but I think it’s a problem you’ll continue to see new juniors deal with.
Thank you for your comment and your insight!
Previous role was corp dev (sponsor owned) so I have some modeling sense. However just trying to figure out the more PE unique aspects to it (waterfalls especially). I’m sure I’ll get it eventually but it might just take some extra work outside the office.
Once you sit down and dissect how 1 waterfall works granularly you understand how they all work and you should be able to mentally walk through all future waterfalls with different tiering, preferred, sweep mechanisms.
Just remember the only thing a model is guaranteed to do is be wrong. You just need to get it directionally accurate.
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