Term-Time Internship. To Do or Not To Do?
Sophomore at an Ivy and got a sophomore offer at L/S HF/UMM PE/MF PE and junior summer at top BB/EB (think GS/EVR).
Deadset on doing IB -> MF PE -> SM HF -> MM HF if I end up doing banking, but was wondering whether it would make sense do a term-time internship at like a smaller hf (~1bn) and if that helps.
Ideally, i'd like to work at one of Bain/Warburg (the few MF PE analyst programs left) and not sure if it makes sense spending 20-30 hrs/week a semester to do publics. Would this give me an edge or does it not rlly matter?
Based on the most helpful WSO content, here's what you need to consider:
Value of a Term-Time Internship: A term-time internship at a smaller hedge fund ($1bn AUM) can provide valuable exposure to public markets and help you develop skills like investment analysis, modeling, and understanding market dynamics. This experience could differentiate you slightly, especially if you're targeting roles that value public markets expertise (e.g., SM HF or MM HF).
Impact on Your Career Path: Since you're deadset on the IB → MF PE → HF route, the term-time internship might not be a game-changer for your immediate goals. Top MF PE programs like Bain or Warburg prioritize strong IB experience, technical skills, and networking over hedge fund experience. However, if you eventually aim for a hedge fund role, this internship could demonstrate early interest and commitment to the buy-side.
Time Commitment: Balancing a 20-30 hour/week internship with Ivy League coursework is no small feat. If this commitment risks impacting your GPA or performance in your junior summer internship at a top BB/EB, it might not be worth it. Remember, your junior summer internship is the most critical step toward securing a full-time IB offer, which is essential for your MF PE aspirations.
Does It Really Matter?: For MF PE analyst programs, the edge gained from a term-time HF internship is likely minimal compared to excelling in your BB/EB internship and maintaining a strong academic record. MF PE firms are more focused on your IB experience, deal exposure, and ability to perform in their rigorous interview processes.
Recommendation:
If you can manage the workload without compromising your academic performance or junior summer internship prep, a term-time HF internship could be a nice-to-have for long-term hedge fund aspirations. However, it’s not a necessity for your immediate goal of breaking into MF PE. Prioritize excelling in your BB/EB internship and networking with professionals at Bain/Warburg to maximize your chances.
Sources: Finishing 1st Year as HF Analyst - Ask Anything, Q&A: HF out of undergrad, ~5 years later, https://www.wallstreetoasis.com/forum/hedge-fund/the-hedge-fund-experience-good-bad-ugly?customgpt=1, What, if any, hedge funds offer internships?, Would a Virtual Summer Analyst Program be Possible?
bump
If you can maintain your GPA (and sanity) while doing both, I think it's additive and differentiated for PE recruiting. While public and private investing are obviously different, this is a cool way to start "thinking like an investor" and will provide ideas/pitches/companies and generally relevant experience for PE interviews.
It'll also help you confirm that you prefer private over public investing before it's time for PE recruiting. Just make sure you have a concise story on "why PE" down the line, and you'll be on a great path.
yeah honestly i think the grades might be a little annoying esp since i am taking 1 core next sem for my applied math + econ concentrations. sanity as well, i just want to golf/go have fun all fall lol
If you want to do MM HF, this is not the path. Rarely do they hire from SM HF, for a variety of reasons. You're best shot is coming out of IB/ER, not PE or SM HF.
L/S equity seats MM HF's are hot right now, but that does not mean that they are now the "pinnacle" of the finance career ladder, and naturally follow after completing some time in IB -> PE -> SM HF -> MM HF. It is a very different role, and by the time you would have enough YOE if you did do the IB->PE-> SM HF->MM HF "path" (which is not really a path), you would be too old to come in as a junior to mid-level analyst at a MM (which you would be), and lack the experience required to enter as a sub-PM or PM.
I encourage you to spend some time on the HF forum if that is your goal.
PM at a MMHF is what i was referring to
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