What Long-Term "Skills" Does PE Actually Give You?
Current IB analyst and incoming PE associate. To date, I've followed the traditional track for the proven stamp on my resume and a skillset that provides optionality. Having generally just followed the herd, I figured IB > PE > whatever one wants.
However, I don't actually know what I want, and IB/PE offer little time for self reflection. I don't want to stay on this treadmill for any longer than I have to; I know it isn't sustainable for me in the long run, nor will it lead to fulfillment.
But as I reflect on my time in banking, I can't point to too many skills outside of Excel/PPT that directly serve as a foundation for my career. Perhaps there are things I'm missing on the soft skills side, or perhaps I'm more incompetent than the mid-bucket analyst I thought I was.
To those who left PE – what skills did you actually learn that served you well down the line? How did you figure out where you wanted go and what you wanted to do?
Were you able to find corporate roles that offered $$ comp scalability? Did you start your own thing, and did IB/PE prepare you well to do so?
Would be grateful for any and all thoughts / perspectives.
Been thinking about this a lot too as someone in PE. Will note that experiences will vary wildly based on what PE firm as I think there's a larger variance in PE experience than banking.
I think what you actually learn is outside of the basic things like Microsoft office or financial modeling is: 1) how to work very hard, 2) how to research companies / what the key areas for diligence, 3) how to communicate well when dealing with very stressed people and various different groups (lawyers, consultants, bankers, etc.), 4) how to synthesize a bunch of info / how to figure out what really matters, and 5) how to ask questions.
Agreed. In the day and and age where some knowledge could be commoditized (with AI), what are the most important takeaways for associates that they should get from their stint? is it the connections of the partners?
I think all of the things I mentioned are more so soft skills and applicable to any role or job. Asking good and relevant questions for example is a broader skill in life that applies to even working in something like sales or academia. I am not sure connections with partners is all that relevant as not everyone that leaves PE stays in the same realm.
Shockingly reflective take from WSO, but unsure as to how PE uniquely teaches you those skills outside of point #2 and #4 vs. other jobs or even IB?
Not unique, just hyper accelerated. PE is filled with the most hardo ppl from your IB class and environment matters.
In a very similar headspace. DM would love to just discuss more about it :)
I'd argue if you dig in, it builds "mile wide inch deep" skills across a number of domains. Legal, accounting, tax, strategy, operations, etc. You get to a "B-" in all of them.
I’d also argue that you learn how to think about business fundamentals, capital allocation and risk/return.
Very helpful when think about underwriting any role/investment/business problem.
PE is the finishing school you think banking was. I learned more in that job than I thought was possible.
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