Why Take Buyside Internships

You raise some valid concerns about buyside internships, and your experience aligns with some of the most discussed points on WSO. Here's a breakdown of why buyside internships can be a double-edged sword:

Challenges of Buyside Internships

1. Lack of Training:

   • Many buyside internships, especially in private equity or hedge funds, expect interns to perform at an associate level without providing structured training. This can lead to mistakes and frustration, as you've pointed out.
   • Unlike investment banking internships, which often have formal training programs, buyside roles tend to throw interns into the deep end.

2. Low Workload and Differentiation Issues:

   • Interns often struggle to get meaningful work, leaving them with menial tasks like note-taking or data entry. This makes it hard to stand out or prove your value.

3. Abysmal Return Rates:

   • Return rates for buyside internships are notoriously low, often ranging from 0% to 30%. This is partly because buyside firms hire opportunistically and don't always have structured full-time pipelines.
   • As you mentioned, this leaves many qualified candidates scrambling during full-time recruiting, which is highly competitive and chaotic.

4. Networking Challenges:

   • The facetime culture and discouragement of networking during buyside internships can make it difficult to explore other opportunities or hedge your bets.

5. Full-Time Recruiting Risks:

   • Full-time recruiting in the buyside is notoriously messy, with limited openings and a preference for candidates with prior experience. This can leave even top-performing interns without offers.

Why Some Still Recommend Buyside Internships

Despite these challenges, there are reasons why buyside internships are still recommended for certain candidates: 1. Direct Path to the Buyside: - For those who are 100% certain they want to work in private equity, hedge funds, or venture capital, a buyside internship can provide early exposure and help build relevant skills.

1. Networking and Brand Value:

   • Even if the internship doesn't lead to a return offer, having a reputable buyside firm on your resume can open doors during full-time recruiting or later in your career.

2. Selective Opportunities:

   • Some buyside internships, particularly at top-tier firms, offer better training, meaningful work, and higher return rates. These are rare but can be worth pursuing.

Advice for Candidates Considering Buyside Internships

1. Evaluate the Firm:

   • Research the firm's internship program, return rates, and culture. Avoid firms with a reputation for poor training or low return rates unless you're confident in your ability to navigate full-time recruiting.

2. Consider Investment Banking First:

   • Many WSO threads highlight that starting in investment banking provides better training, deal experience, and a structured path to the buyside. Banking analysts often have an edge in on-cycle recruiting for top buyside roles.

3. Prioritize Return Offers:

   • In the current market, securing a return offer should be a top priority. A guaranteed full-time role provides stability and reduces the stress of full-time recruiting.

4. Be Strategic About Networking:

   • Even if networking is discouraged during your internship, find discreet ways to build connections and explore other opportunities.

Final Thoughts

Buyside internships are not for everyone, and your experience highlights the risks involved. For most candidates, starting in investment banking or another structured role with a clear path to full-time employment is a safer bet. However, for those who are laser-focused on the buyside and willing to take the risk, these internships can still be valuable stepping stones.

Sources: Buyside Jobs out of Undergrad, Q&A: Buyside women, Q&A: Buyside women