What are your Long Term Goals? Do Most Stay in PE?
I'm soon to be an analyst in IB who will be hitting on cycle recruiting. I was wondering what people actually filling the Asso+ roles on the buyside want to do long term? There's the golden path of 2 + 2 + MBA, but do people do it mostly to stay in PE or switch to something else?
I feel as if I've been in an echo chamber in undergrad with everyone jerking off to the possibility of upside in PE, but I think it's realistic to speculate that majority of people's priorities/goals/wtv will change over the course of a few years or even less. I definitely was swept into this kind of thinking, but I really want to get a bit of realistic context into what industry folk are planning with their careers and lives. I'm beginning to notice from speaking to a few older people that planning a linearly rigid, tried & true path is somewhat futile so early on.
I'd appreciate any insight and thank you!
Based on the most helpful WSO content, your question touches on a critical topic that many in high finance grapple with. Here's what you need to know:
The 2+2+MBA Path and Beyond:
The "golden path" of 2 years in IB, 2 years in PE, and then an MBA is a well-trodden route. Many pursue it because it opens doors to senior roles in PE, hedge funds, corporate development, or other high-level finance positions. However, this path isn't necessarily about staying in PE forever. For some, it's a stepping stone to explore other opportunities like startups, consulting, or even non-finance roles.
Do Most Stay in PE?
Not everyone stays in PE long-term. While some aim to climb the ranks to VP and beyond, others use their PE experience as a launchpad for different careers. Common exit options include:
A WSO thread highlighted that after the 2+2+MBA path, many professionals reassess their priorities. Some realize they don't want to stay in finance, while others pivot to roles that align better with their personal goals or lifestyle preferences.
Changing Priorities Over Time:
It's realistic to expect that your goals and priorities will evolve. Many professionals in finance start with a focus on maximizing compensation and prestige but later prioritize work-life balance, personal interests, or family. A WSO user noted that planning a rigid, linear career path early on can be futile because life circumstances and interests often shift.
Advice for You as an Incoming IB Analyst:
In summary, while the 2+2+MBA path is popular, it's not a one-size-fits-all solution. Many use it as a foundation to explore diverse opportunities, and it's perfectly normal for your goals to change as you gain more experience and perspective.
Sources: What is the point of doing private equity if you will be pushed out after two years to get an MBA?, What is your long term career plan? / What do you do after the 2-2-2?, Accounting vs Finance: Part 1 – Career Paths, How many target kids go straight to MF PE?, Breakdown of Post-IB Exit Opportunities
Would like to hear too
Get out of PE going forward.
What do you plan to pivot into, and what spurred your decision?
You can get equity like returns from credit now and rising interest rate environment are a death sentence for alternatives.
Are you going to comment this on every thread?
Guy clearly was laid off or something — nothing better to do than spam threads about how much PE is “going to suck going forward”
I trade natural gas now. I won 2023 North America Energy Deal of the Year in PE. The entitlement to think the market will always go up is pure comedy.
Keep doing what I'm doing, I always liked finance so no plans atm. Sometimes I entertain the idea of doing public markets/HF, but then I remember I am too lazy/not as passionate to follow everyday what markets are doing. I like order and stability (as you see, self-awareness quickly kills the grass is greener mindset)
A few paths:
You realize you love finance (banking or investing) and run through walls to preserve a career in finance
You kind of like finance and are lucky enough to be in a seat that has upward mobility and stick it out
You kind of like finance but are in a tough market or sector, and bail for greener pastures
You hate finance and are ambitious -> go to a startup or different career path
You hate finance and are risk averse -> eventually get pushed out mid level and flame out to some corporate career
Hopefully I land in the first category haha, but I'm quite curious/excited to see how where I'd be once I'm actually working FT.
This is the most accurate summary of paths past the assoc. / VP level I've seen
Mods need to pin this
Would you prefer secondaries, infra, or special sits if you had to start your career today? Many thanks!
IB/PE for me are just a proof of my ability for myself and my social circle + resume. Longer term I want to operate, maybe at some time for a large high growth private company pre IPO and eventually for high growth startups
Gotcha makes sense, and is this referring to something in corpdev or a diff type of role?
I am not interested in Corp Dev, more so strategic finance / operations and working towards exec leadership (corp dev tends to be isolated)
I did IB -> PE -> Corp dev while being a digital nomad. Optimized earnings, pedigree, freedom, and life experience. I have a plethora of career opportunities, got to maximize my youth, and make $300K+.
I could have made significantly more staying in PE but this path allowed me to live life on my own terms and live without any real regrets of life experiences forgone.
Damn making 300k+ in corp dev sounds awesome. Did you start at that range exiting PE, and what type of company was this (f500, tech, startup, etc) if I may ask?
Started off at ~$180K post PE and got promoted a few times over a few years. I think $175-225K cash was market when I transitioned out a few years ago. Corporate money scales up as you get promoted, which I think is a realistic expectation for ambitious and competent ex PE people.
Would love to hear more about your experience being a digital nomad. Are you abroad and in a vastly different time zone than the rest of your team? If so, how was getting the team onboard with that and has it caused any issues?
I would work US hours so it was never an issue. Yeah it was annoying to be up at weird hours but digital nomading isn’t being on vacation - it’s just a way to experience normal life (not vacation life) in different parts of the world. I enjoyed nomad life for the ability to spend quality time with friends I haven’t seen in a while and do activities in parts of the world that I wouldn’t normally be able to (mountains for skiing, beach for surfing, etc.). It gives you a unique perspective on what life could be like in different countries and cities.
My company did not ask or care as long as I got my work done and was available during normal working hours.
FBGM
Eventually I just want to acquire a few dozen SMBs with SBAs and live off the cash they generate while using their balance sheets to acquire as much bitcoin as possible. PE is just a means to acquire the skills to do that at scale and save up enough cash to execute on it.
Can I ask how you’d go about shortlisting and finding these businesses?
I'm starting in my hometown because it's been seeing a lot of growth lately with people coming from NY/CA. Looking at older (retiring founders) family friend-owned companies that I know to be inefficiently run (lots of pen & paper), stable (been around 10-20+ yrs), and decently cash generative (low 6 figs net income). Boring stuff like an auto shop, funeral home, etc. Don't expect to be making anything off the first 3-4 acquisitions between trying to hire a manager to run the day-to-day and aggressively paying down the debt so I can releverage them to do the next deal. My hope is that by 2030 I'll have at least 5-6 done and can start drawing decent dividends out.
Echoing a bunch of comments above (ignore my title). Went MM PE --> IB --> MF PE and realized by the second investing job (lol) I could do the work but my heart wasn't in it. Switched into a high growth pre IPO company in operating role (not strat fi or corp dev but more on the bizops side) and love it. Money lower than PE ofc but well worth it - even when the hours are long it's a hell of a lot more fun.
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