Why PE before HF?

At least for those that do want to go down the IB to PE to HF path, it seems backwards to me: you learn operations first, THEN how to identify mispriced businesses. Shouldn't it be the other way around, i.e. learn how to identify undervalued businesses first, then how to take advantage by optimizing operations? If you progress to a HF where you're not taking on an operational role, is the whole PE skillset you develop rendered useless?

(Likely a dumb question. After all, there must be a reason certain norms exist)

1 Comments
 

Placeat reiciendis cupiditate et. Repudiandae non est accusamus ullam eum qui sunt dolorem.

Esse voluptatum repellat earum dolores non quasi corrupti. Aut asperiores et perferendis ut modi hic soluta ex. Enim pariatur consectetur aut eum eaque.

Aut officiis provident et necessitatibus. Ea voluptate laborum autem fugit odio. Repellat dolore sint delectus praesentium a adipisci possimus. Enim numquam quidem dolorem rem veniam dolor. Praesentium quidem dolorum rerum debitis reprehenderit quis. Et est quis doloremque odio fugiat.

Career Advancement Opportunities

June 2026 Private Equity

  • The Riverside Company 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.2%
  • Blackstone Group 98.9%
  • Warburg Pincus 98.5%
  • Bain Capital 98.1%

Overall Employee Satisfaction

June 2026 Private Equity

  • KKR (Kohlberg Kravis Roberts) 99.6%
  • The Riverside Company 99.2%
  • Ardian 98.9%
  • Blackstone Group 98.5%
  • Starwood Capital Group 98.1%

Professional Growth Opportunities

June 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.2%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.1%

Total Avg Compensation

June 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (97) $363
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (234) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (95) $134
  • 1st Year Analyst (271) $124
  • Intern/Summer Associate (37) $80
  • Intern/Summer Analyst (352) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
DrApeman's picture
DrApeman
98.9
8
GameTheory's picture
GameTheory
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”