I know some of the larger PE firms- BX, Carlyle, Leonard Green (I'm sure some others) hire small numbers of undergrads as analysts without prior FT banking experience. Does anyone know enough about this to comment on recruiting, role played at the firms (compared to post banking associates), comp, etc. Honestly no reason other then I am curious and have bumped into a few people while perusing the sites (most seem to have GS TMT or some other top notch SA under their belt). Appreciate the insights.
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My buddy went from a target state school > JPM IBD SA > BX FT. Not sure about his comp, although I'm sure it's very similar to what the street pays.
UVA, UMich, UCB, UCLA all get very good on campus recruiting and could be considered state school targets. Although typically BX PE hires from Harvard, Wharton, and Yale, with the occasional person from other Ivies like Dartmouth/Princeton/Columbia. However, they do phone interviews at numerous schools including some of the state schools listed above.
And actually, not all of them require super competitive resumes. Leonard Green hires from Notre Dame, and Ares recruits on campus from Notre Dame and UMich. The kids they take are not necessarily turning down GS, MS, etc to take these PE jobs. Most of the top candidates still prefer great sell side experience and brand over a PE analyst role, simply because IB opens more doors.
I would say BX is the exception rather than the rule for buyside jobs out of undergrad - the kids they take are definitely turning down GS/MS and are extremely smart and finance-focused.
Not quite sure what doors banking opens that Leonard Green doesn't. You'd be crazy to turn them down for any bank.
Joining one of the megafunds out of undergrad and had an offer from another MF as well. Also had an offer from a top BB for IBD and go to a target school.
If you did an IBD SA, getting an offer is almost a prerequisite for getting a PE offer as the process for the PE firms is run after the summer and not getting a FT offer doesn't reflect well on you if and when they ask about it in interviews. Recruiting varies - some do OCR, some use headhunters, some require connections to break in (mostly MMs doing ad-hoc recruiting), but overall it's less structured than pre-MBA associate recruiting. If the firm does internships then that's obviously one way to convert to FT, though many people break in with a background involving multiple internships in top IBD or PE.
Not going to talk about comp other than that it is definitely a notch above IBD street, with some firms even offering carry-like incentives which can be a big comp boost in times of good fund performance. Obviously this varies - I'm guessing most MM PEs will pay street or slightly below street.
Can't really comment much on work yet, but from what I gather it should involve a decent amount of deal-related work and less mind-numbing crap compared to banking. Hours depend on firm, some are pretty brutal and have it worse than banking, especially when a deal is on.
I was always going to use IBD as a stepping stone to PE, so the decision between IBD and MF PE was relatively easy for me. On the other hand, for places like Ares and Leonard Green, which I'd probably call upper-MMs, the decision between them and IBD would have been more difficult. I'd have probably also picked top IBD over a sourcing shop like Summit or TA. However, I know people who have turned down BX PE for top banking offers, so it's not as clear-cut as many of you might think. You should be able to think past the marginal differences in perceived "prestige" and the ability to induce a "wow-you're-doing-MF-PE-how-badass" reaction in your peers, and instead really think about what you want to do and where you want to take your career and lifestyle. You obviously won't have as much deal experience joining a PE firm instead of an M&A shop (think about the life of a deal in banking vs PE), which can be a pretty big risk if your fund ends up doing relatively little in your analyst years.
Thanks for the responses. Still be curious to know the role played by analysts at these firms if it is an "assisting associate" type of role or something different. @Cruncher or whoever else might know- If I am a junior starting at a top BB for the summer from a top school but not HYPWS and have possible interest in making the direct jump to PE, what is the best way to make that an option (aside from securing an offer/performing well this summer). I'm by no means set on doing this, but I'm curious how one might go about making it happen- reaching out to the PE firms directly or is there another way? I can't imagine too many HHs contacting SAs, but might be wrong there.
how many pre-MBA analysts do megafunds take per year? (Originally Posted: 02/21/2010)
question! thanks!
^ Try to see if you can get in touch with people in HR at various firms, let them know that you're interning in NYC in (hopefully) a top group, that you're interested in their firm, and wondering if you could catch up. When I was a summer all of these places (BX/SL/Apollo/etc) had networking events over the summer for people who were interning at BBs. Obviously they aren't broadcasted to the world and best way to get invited is to know the people putting on the event.
If you go to a target school these places came on campus to recruit so just go the the networking sessions, smooze a bit, get people to like you and you'll be notified if the firm is hosting something over the summer. If you're not at a target, leverage the other summers in your group. If you are in a top group then there will be kids from HYPWS. Don't feel awkward about tagging along. When I went to these events the usually suspects where always there but there were always a few kids from "random school x." Nobody seemed to care so don't worry about it.
+1 thanks for the advice.
So basically try to connect over the summer with HR/other people at these firms expressing interest/letting them know what I'm doing and then also attempt to tag along to any summer events taking place in NYC.
I would expect that in most funds it is indeed very much an "assisting associate" type of role. Analysts are unlikely to be doing the entire model in a live deal, but will definitely contribute and cooperate on the modelling with the associate in the deal team. I also believe that a significant chunk of an analyst's time is spent monitoring portco's and analysing potential add-on acquisitions. As you gain more experience, I'd expect to be more and more taking on associate-like responsibilities. Both firms I had offers from implied that most analysts who stay on will be promoted to associates with potential for partner-track without an MBA, so it is natural that the firms have an interest in your professional development and want to give you real skills instead of just the grunt work that associates don't want to do.
Try and secure a solid group for the summer and maintain a professional LinkedIn profile. Some HHs do indeed contact SAs, but will do so almost exclusively via LinkedIn. Viewing the profiles of PE headhunters so that they can see you've viewed their profile helps with putting you on their radar. Many funds hold networking events during the summer, so try and make sure you're on the radar for these kinds of things. If you notice from WSO or otherwise that the processes have kicked off but for some reason you aren't included, feel free to contact the firms directly to express your interest. And of course keep an eye on online job postings (e.g. BX usually posts jobs online) as well as your school's OCR.
all things considered, small..
many aim for the megafunds, few make it in
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