Post-MBA IB associate are less Desirable?
Something that has been bothering me is as I have become more & more active on this platform & Buyside in general, why does it seem that exit opps just seems to drop by 80-90% if you are coming as post-MBA?
Like pre-MBA IB analyst/MBB ->Buyside is well established but somehow Post-MBA IB associate ->Buyside is impossible but why's that?
I get argument that "Too senior for junior roles & too inexperienced for senior role" but what if someone is ready to accept pay-cut & junior roles just for a career in PE?
What if someone has MFPE experience ina different country & only way to land PE shop in US is MBA->IB Associate?
Post MBA asos are old, less smart generally, often fucked up theirs 20s and reset with MBA.
Investment banking analysts are A tier talent (below the top tier who did quant/HF/FAANG SWE out of undergrad).
You have to realize that PE recruiting is one of the laziest things ever invented. The number one correlated factor with success in PE recruiting is where you went to high school (because that is far more indicative of certain backgrounds than where you went to college, and will correlate strongly with being guided through the gilded path to PE glory). They don't care about investment acumen, overall competency, ability to grow into a VP/Principal/Partner etc. They care about whether you have met an arbitrary list of things from a checklist that aligns with what they think is required in the profession (because they too checked those boxes). Then they hire the 22 year old with no real experience that best passes their interviews after meeting those requirements. Anything outside of that would require thought, nuance, and some effort, none of which they will deploy for recruiting when they don't view it as something that needs to be fixed.
Thanks.
Heard this for first time. I know PE is pedigree conscious but high school? Idk.
It seems post-MBA IB associate has fewer exit opps other than being a career banker.
Just to clarify he didn't say PE is high school pedigree conscious, he just said it's correlated. Meaning PE hires a certain type . . not simply from a top college but a certain type within that group . . let's just say, the type of guy who looks like he's spent some time on a sailboat. And if you wanted to identify that type of guy by a metric, high school might be the best predictor.
That type of guy more likely checked the right boxes as a teenager and college kid. The post MBA associate is much more likely somone who came along a bit after that point of life.
Separately, there's a basic problem that most PE associate roles are designed to end after two years with the associate going off to get an MBA. So, that's not going to work for most post MBA associates and even if there are a few that are cool with that, it's too few to have built a repeating practice of hiring post MBA associates.
If you want PE after MBA, its a much more ad hoc and guerilla style process. For example I do acquisitions for an UHNW individual that I had a connection to. The connection was luck, but his decision to (i) even pursue acquisitions at all and (ii) choose me to lead it, had a lot to do with the preparation & dedication I showed him when we first talked about it. So I'd say its less about luck (because opportunities are very likely to come up at some point) and more about preparing yourself every day so you're ready to pounce when opportunity hits.
Based on the most helpful WSO content, post-MBA IB associates face significant challenges when trying to transition to the buyside, particularly into Private Equity (PE). Here’s why:
"Too Senior for Junior Roles, Too Inexperienced for Senior Roles":
This is a key issue. PE firms typically hire pre-MBA analysts for junior roles because they are seen as moldable and cost-effective. Post-MBA associates, on the other hand, are expected to bring more experience and leadership skills, which they often lack compared to candidates with prior PE experience. This mismatch makes it difficult for post-MBA associates to fit into either junior or senior roles.
Preference for Pre-MBA Analysts:
PE firms have a well-established pipeline of hiring pre-MBA IB analysts who have already demonstrated their ability to handle the technical and operational demands of PE. These candidates are often seen as a safer bet compared to post-MBA associates who may lack direct PE experience.
Increased Competition:
The buyside is highly competitive, and there is an abundance of candidates with prior PE experience or pre-MBA IB experience vying for the same roles. Post-MBA associates often struggle to stand out in this crowded field.
Pay-Cut and Junior Roles:
While some post-MBA associates may be willing to take a pay cut or accept junior roles, PE firms are generally hesitant to hire overqualified candidates for junior positions. They may worry about retention issues or the candidate's long-term fit within the firm.
MBA as a Career Reset:
For candidates with prior PE experience in another country, using an MBA to transition into the U.S. market is a valid strategy. However, even in this scenario, the path is not straightforward. Many PE firms prioritize candidates with continuous PE experience, and breaking into the U.S. market often requires networking, internships, or targeting firms that value international experience.
Changing Industry Dynamics:
Over the years, the prestige and necessity of an MBA for PE roles have diminished. Many PE firms no longer require an MBA for career progression, and the opportunity cost of pursuing an MBA (both in terms of time and money) can be significant.
In summary, while transitioning from a post-MBA IB associate role to PE is not impossible, it is undeniably challenging. Candidates in this position should focus on networking, targeting niche or smaller PE firms, leveraging any prior PE experience, and being strategic about their career moves.
Sources: A Few Observations on Investment Banking Exit Opportunities, Breakdown of Post-IB Exit Opportunities, Why are post-MBA associates so bad?, Why are post-MBA associates so bad?
Nobody wants a 32 year old pe associate, that’s just weird. Look into PE ops roles
Why would you hire a 32 year old with a ton of debt and potentially a family when you could get a 24 year old with zero responsibilities outside of work who can work 110 hours a week?
Tbf this sounds like a very anglophobic perspective. I've been recruiting for the buyside in continental Europe when I was already older (~30yo) after 3 years of MBB. Previously to MBB I went the traditional route of master, bachelors and a gap year. Where I am initially from (Switzerland), apprenticeships are also common so thats what I did pre my bachelor.
I interviewed at basically every major private capital house, from mid-cap to megafunds. Literally nobody cared about age. They just threw you into the process and if you cracked the model, were smart in technicals and case studies and had an overall fit there was no filter for "oh this guy is too old".
That being said, in continental Europe it is also much more common that the 'younger' associates were already ~26-28 so not such a big gap as in the US, where people start working at like 20/21ish.
thats because people in europe start full time work at age 40 after doing 30 internships, masters programs in finance, and GDPR certifications to work 20 hours a week at a place called societe des banques
Yes, you are correct with regard to Europe. But it says this guy is in the US, so I gave an answer tailored to the US.
most MBA Asos are honestly laughable, especially the DEI ones.
The comments here are brutal, but it’s true.
Can you move MBA > IB > PE? Sure, it’s technically possible. Does it happen much? No.
Mix of reasons, namely: (1) No structured on ramp for recruiting process (and industry is heavily gated); (2) Age (not literally a barrier, but in general at that point you’re mid 30s, and most people start wanting to work less around then and have a family); (3) Competition (if there’s already a whole set people vying for one job, why would you pick the person who has less experience in the role, and likely wants to be promoted sooner)?
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