Tier 2 IB BB vs MBB for PE exits
For PE exits, I know some firms prefer IB over MBB wile other firms prefer MBB over IB. What are some of the pros and cons of exiting into operationally focused PE projects vs those that only take people from IB? Will a Tier 2 IB BB get the same looks as an MBB for PE exits?
Dude objective right answer here is IB. People far over estimate how easy it is to get into PE from MBB. Yes it absolutely can be done and will be done every year, but many people with the Ivy , New York office (which no does not matter a ton), top GPAs strike out completely of PE. Think about it this way: you can search this forum and find good lists of “consultant friendly” shops, but you will never find a “banker friendly” list since basically everything other than AVALT or Invus group (yes I know you prob haven’t heard these names before, kind of the point) very eagerly take bankers.
Plus, if you do actually get the job, IB analysts are much better equipped to hit the ground running day one.
I think the only reason to go MBB here would be like if you’re absolutely dead set on going to H&F or Bain cap or something similar (though even advent has lots of other BBs represented), and see it as “H&F or bust”, in that if you can’t get one of these names, you’re happier in a S&O role at a startup so long as you can tell yourself that you maximized your shot at interviewing at H&F. To be clear, we all have one life and endless ambitions so if this is you I don’t judge. However at that point, I’d probably ask you if you are doing PE just because it sounds sexy on hinge or because you actually want the job, which starts to matter more when you’re 24 and not 22 and still cranking through the nights.
When you say H&F or Bain cap are consulting-friendly, do you mean that they are more open to taking consultants rather than bankers? Hypothetically, let's say that you have an offer from a tier 2 bank and an MBB offer. If you were looking forward for PE exits, which one would provide better opportunities?
Ya I don’t think my full point is coming across here —
Yes Bain Cap especially prefers consultants to bankers , but even among consultants, a particular subset that have done a summer in banking etc seem to prevail.
But again, forest from the trees here: that’s the exception not the rule. To answer your question, I’d take IB any day over MBB IF my goal is solely to maximize PE chances more holistically and break in
Completely agree with this did both MBB and IB now on the buyside - MBB is not well suited for a career on the buyside. If you want C-Suite, go with MBB but for any Investing role IB >>>> MBB and its not even close.
Also, do not listen to MBB Consultants on this. The issue I found at MBB is that they "do not know what they do not know" hence they will say things like "you can break into PE easily". I can assure you it will be an uphill battle relative to had you done banking.
Former analyst at DB:
Try to figure out what job you want to do: finance or consulting may sound similar at this stage but fundamentally consulting is more qualitative and strategic in nature while finance is more quantitative and execution in nature. I think most people do have a preference and are going to be better or worse in one over another.
I would also note that MBB will have better exits into more corporate roles than any IB will, but conversely on average: IBD exits better for the broader buy-side even if a "lower" BB/EB is mostly due to overall more opportunities.
As someone who just recruited for buy-side out of DB and had friends recruit out of buy-side out of MBB from my target school, significantly more MBB kids strike out completely even after being prepped. There are just simply fewer PE firms looking to hire consultants. Also as of note: my MBB friends received fewer overall opportunities for PE than I did, but tbf more MF names for the MBB consultants, and more UMM names for IB analysts/me (as well as access to other PE strategies like solid Infra, Credit, Secondaries, etc. opportunities). Could just be a personal experience, but think it's broadly true.
I think we’re broadly saying the same thing here. Only point where I deviate slightly from ya as a former MBB guy is surprising to hear you say more MF for MBB since it’s basically Advent, H&F, Bain Cap, TPG (on a good day) that regularly and routinely take consultants with Apollo, KKR, Silver Lake, Blackstone, Thoma Bravo, and the rest that I am blanking out on would never touch a consultant
Really depends on the tier of your IB.
If it’s with a firm below the top 5 BB and EBs, it gets harder to get looks from MFs and top UMMs. Lots of Tier 1 IB candidates are gunning for those limited seats.
Most of my friends at MFs say their firm will only give interviews to candidates from GS, MS, JPM, or a top EB — otherwise, no look.
I think if you’re coming from MBB in New York, you still get a decent shot at a lot of UMMs, since fewer consultants are aggressively targeting PE.
What would you consider the top 5 BB and EBs?
I have a hard time believing that. Unless we’re talking about a select few MFs or ones with limited to no spots due to their analyst programs. If you come from one of the following banks in M&A or Coverage, you should be in range for opportunities at nearly every top firm (and should land name brand MM to UMM/MF bearing execution / luck).
BBs: GS/MS/JPM then BofA/Barc/Citi
EBs: CVP, EVR, LAZ, HL RX, PJT, MOE, PWP and probably GUGG at this point
If you’re at the next tier: Low BBs (UBS, DB) and top MMs (Raine, PJS, WB, Piper, etc) you still have a shot, but will be harder.
Agree with your comment and disagree with the OP comment. Am at a MF and know lots of kids from MS/CS/Barc.
Also was at a “2nd tier” BB and several kids in my group went to top tier MFs. I think you will get looks at any BB and then once you’re in the interview process (on cycle or not) all that matters is your interview skills.
Would Jeff, WF, and RBC fall in the tier of top MMs you mentioned? (Currently in their processes, so just curious)
How will this argument change if looking at a reputable MM IB shop?
It depends on how you define reputable MM IB , but still likely IB by a long shot. Absolute worse case scenario, you can lateral to other banks (but still probably do not need). I came from a target and know a decent number of MM IB ppl who ended up in reasonably cool PE spots .
Molestiae quia cumque voluptas vel. Itaque ullam tenetur et qui tenetur labore. Et est esse et laboriosam molestiae corporis.
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...