What are the best IB product and coverage to get into PE?

For this question imagine the candidate is coming from a well-known but not top-tier BB firm like (SocGen, Mizuho, RBC, Truist, Macquarie). What is the best IB product or coverage group for them to pursue at the firm to have the best chance of PE as an associate?

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Whoever does the modeling. More times than not it will be product, so generally M&A and FSG will be the best groups for PE. Don’t know anything about how the above banks operate, but if they do in fact have smaller product teams (like GS and JPM), then coverage will likely be your best bet. In terms of coverage, you should aim for the best group within you bank in terms of deal flow and size, but this could be limited. Again, no idea how those banks work or what they thrive in, but if you’re in SocGen FIG you’re not going to PE lmao even if it’s their best group.

In terms of the breadth of PE options, holding all else equal, I would say generally the hierarchy would be:

FSG >= M&A >= TMT = Industrials > HC >= Consumer > LevFin > Everything else

 

Okay so right now I do M&A, Capital markets, and financial advisory at a boutique bank that only does project finance, energy, infrastructure type deals. We compete with top MM and some BB banks in this space.

I'm guessing it would be ideal to lateral over to a more well-known bank if I want to do PE one day. Or would I only need a more well-known bank to go to a top firm like KKR and could I get into a Vista Equity or Clearlake Capital from where I'm at now?

 

M&A is a good group, or a coverage sector you have genuine interest in. You could be in the best FIG group but not have any interest in fig, and that may be less optimal than being in a decent consumer or tmt group but be more attentive to projects

 
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