Urgent Dilemma: PE Analyst Offer Versus Top BB Product Group
Hello! I am a current summer analyst in an ECM or DCM group at a top bulge bracket GS/MS/JPM. Over the summer I recruited for some PE analyst programs and finally landed one offer.
The dilemma Im having is deciding on this offer versus a return offer for my group. I got good signs from my seniors and associates too that I should get a return and I like my group. There is also history of second year analysts moving to coverage and Im told it happens a lot.
The PE firm I got offered from I guess is LMM and raised a $500M fund recently. Its been around for years and I like the industry it covers and everyone seems nice. My worries are three things:
1. Comp - I know I shouldnt worry about comp at this stage of career but the all in on the letter with base and target bonus is less than my base and signing at my product group.
2. Training - I have interned at my firm before and know there is good training and support to get better that im not sure would be a thing at a firm with like 15 people.
3. Later Career - some analysts who leave this PE firm go to similar or middle market PE shops but lots end up in random corp dev jobs. I dont know if the bank brand would be more helpful in longer term if I want to go to a bigger PE firm later.
What would you do in my situation? I have to decide soon so need advice ASAP
Bump
Take the BB product group - you'll build a better network (big analyst class with lots of other motivated people) and it won't be hard for you to lateral to a coverage group internally or externally. Plenty of people do this and then recruit successfully for PE.
The LMM fund is an unknown in terms of training quality, long term career opportunity within the fund, and the experience will likely be discounted by head hunters if you want to move up market. You also won't have the opportunity to build a network (this matters a LOT - your fellow analysts will all go on to do interesting things) and if you decide to leave finance, the lack of a brand will limit the attention you get for other opportunities.
Thank you. Would your answer be different if the LMM had a history of promoting analysts to associate and that analysts move to other funds in the same sector?
It's really a bet on yourself. The less risky path is BB name (with the assumption you can move to coverage in-time and it's not something like FIG).
Personally, if you actually know you like PE, and it's a long-term goal (and you are not MF / Blackstone or bust type of guy), I would go for it. Especially if the LMM fund has a decent track record of promoting / other people leaving for other firms successfully.
Know some people who did the latter and are killing but I think it's definitely risky as the training won't be great, so you are expected roll-up your sleeves. If you know you are not prepared, definitely take the BB. Not worth burning out / not meeting expectations at the LMM fund.
Take the BB route
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