PE after MBA?
Is it possible to get a PE role right after MBA? I just finished up my first year as an analyst at a mid tier BB (little active deal experience), but I want to leave to go into an IR for an early stage consumer focused fund I really like. However, I don't want to close the door on PE entirely.
Hypothetically, if I go to a top MBA school two years down the line, would I have a chance at getting a PE job after graduation? Do PE firms hire associates right out of MBA school and will my one year in banking be decent enough to land a PE job? or will I be completely cut out of the PE route if I do not finish the full two years of banking
Any insight would be much appreciated!
There are generally 2 routes coming out of B School: prior PE experience, and no prior PE experience. Banking is debatable if you're 4-5 YOE, but 1 year leaves you, for all intents and purposes, in the "no prior experience" group. It's not impossible, but you'll have to fight for summer internships, likely at a LMM firm if you aren't a diversity candidate (bigger funds tend to focus more on diversity). All that to say that the door isn't closed, but will be more difficult and you're going to need to network significantly during the school year to get that PE internship, which will be crucial to getting FT looks post-MBA.
would i still be considered no experience if I go to an early stage growth equity shop for lets say 2 years before B school?
The comment above is correct. Generally, if you don't have meaningful investment experience prior to B-School, you're in the no experience camp and thus mostly excluded from any decent MM fund and almost entirely excluded from any UMM/MF. Even if you're at H/S it doesn't really matter. The only minor caveat would be, if you had significant experience in great banking roles prior to B-School, you might get a couple of looks, I'm talking EBs, GS TMT, etc, the top groups. If you did that for 4 years and went back to B-School at H/S, you might get a couple of interviews, even then it's tough, especially now that we're in less of a frothy market.
You can go into school and aim to get experience by working while you're in school, which isnt' a bad plan, but you need to make sure you go to a place that gives you flexibility to do this, for example, Stanford is generally more flexible than Harvard as far as courses go, and some schools like Booth/Kellogg have lab classes that help to place you into local funds so you can work during the year. Even then, folks that go through those programs usually end up at LMM funds if they have no prior experience.
So really, it's less about banking cutting your off from PE as it is, your prior PE experience cutting you off. If you did banking for a year, IR at this early stage fund, but think you could find a way to do 2 more years as an Associate at some form of decent fund before business school, then go for it. Just keep in mind, your post-MBA PE journey is mostly determined by your pre-MBA experience.
To answer your question specifically, 2 years at an early stage growth shop would put your into a VC/Growth bucket, but unlikely you should make the transition to a reputable PE firm. VC doesn't equal PE, so buyside will help for post MBA lateral moves, but you're not going from no name VC to Vista. Maybe Sequoia or A16z they'd give you a closer look given the brand name, but still tough.
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