Why do GE firms like candidates with Investment Banking backgrounds?
I’m not using this dish on investment bankers who’ve made the switch to growth equity, IB produces strong candidates regardless of industry, but I am curious how investment banking experience translates to what is more commonly a very sourcing-heavy role for growth equity funds like JMI.
From my experience in IB, you’re very rarely leading calls and spend the majority of your time in silence working on decks / the occasional model. Sourcing sounds like the exact opposite, and it seems like the best “GE” candidate would come from an operating role / account executive role rather than a quant heavy position.
Bankers who’ve made the switch to growth equity and killed it or enjoy the position, let me know your thoughts and if/where I’m wrong.
It's a lot easier to teach someone how to source than to teach them how to model. GE is a lot of sourcing but there is also quite a bit of heavy lifting on fairly complicated financial concepts - transaction structuring, modeling, etc.
An account executive probably can't model and it would take a while to teach them all of that, let alone all of the financial concepts someone from a finance background would already know.
Someone from IB can already do all of those things and it's really not difficult to teach them how to source. IB is not occasional modeling, anyone from a reputable program has spent two years elbows deep in heavy Excel modeling.
In a typical BB coverage group modeling is pretty occasional
In the current deal environment I agree, but I've been in coverage for 5 years and over a longer time period the analysts typically leave with pretty substantial modeling ability/reps. Might depend on bank/group too, some BBs have M&A own the model in which case you're not modeling much.
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