Why leave PE for an MBA?

Why do people leave private equity for an MBA? Is this so they can just go back to private equity? What makes it a value play assuming you’re several years into your career already and making tons of money…

No more prestigious career to jump to unless you go public markets but I doubt a hedge fund hires off the merits of an MBA

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Override the undergraduate college name with a more prestigious brand

 

Yes, to either trade up PE shops (LMM -> UMM/MF) or they’re at a shop that pushes you out for your MBA before you can become a VP. Your choice is either to go to another shop that usually downstream if you don’t want B-School.

I also think more increasingly people who do the MBA after PE to try and pivot to either entrepreneurship or early stage corp dev, as WLB and location becomes more i prot at as you age.

 

You can look at the cost like a high end golf course initiation fee. Payoff depends on how often you go (play/network) and how well established the club (school brand) is, etc. 

 

I worked at a shop that didn't require it but strongly suggested it.  You'd come back w/ a Stanford MBA, VP title, and 500K base, so not a bad return all things considered.  Hell they even paid back your student loans in some contracts.   

Other people I saw leave went into entrepreneurship after they saved their nut, took on exec roles at portcos, or went into parallel industries (hedge funds, VC, etc). 

 

I'd out myself too easily but you could LinkedIn bios of folks from some of the usual suspects and it'd be apparent fairly quickly, if that helps. 

 

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