To MBA or not to MBA?
Ignore title, senior associate in PE/growth equity.
Currently on partner track at an up and coming growth equity shop in a tier 1 city. Great reviews, good WLB, decent comp, no need to leave. I don't really feel like I need a "break" and I don't want to change industries / functions etc. I'd probably go back to doing growth equity post-MBA (possibly even at my same firm), maybe pursue mid to late stage VC i.e. slightly earlier stage investing.
However, wondering whether I should pursue an MBA for long term success? Some reasons I've thought it could be valuable are (i) I went to a highly ranked school, however it was not finance focused/was very academic, so an MBA could really help me expand my network substantially, (ii) I did not pursue finance classes in undergrad so an MBA could be a chance to learn finance and accounting "formally" and gain more quantitative skills, (iii) working remote during covid and now hybrid/flexible has made me think seriously about moving geographies to somewhere with better outdoor access, and an MBA would give me the network to do this.
Hoping to get some insight from those who have been in the same seat!
Would your firm sponsor you? You’re in a good position to apply flexibly to top programs. Toss an app into H/S and see if you get in. If you don’t, wait a year and try again. This was my strategy and currently at H. If your firm will sponsor you, it could be a nice break and help with your long term career
Thanks for the reply! Can you give some insight into how you communicated that approach and thought process to the partners at your firm? I would essentially only go if I got into H/S (maybe Booth or Wharton if they gave me a full ride) but I don't want to undermine my commitment to my firm or slow down my career progression in the event I don't get in.
Yea I mean it can be dicey. At my old bank, you weren’t even allowed to write recommendations for people. So there, you can only mention to true mentors / confidants. If the culture is different and more focused on your growth or development, you could be more open about it. Maybe find someone you trust, take them for lunch, and ask about their journey and whether they ever thought about an MBA. That would be an easy way to bring it up and see their reaction.
The biggest thing is just finding two people, whether or not they work at your current firm, who will do the recommendation for you. If you can get this without disclosing your plan to everyone, do that. Once you apply and hopefully get accepted, now maybe formally discuss a sponsorship and returning back. You’re very de-risked at that point.
What did you do in the one year between you being rejected and eventually getting in? Presume it is viewed negatively to apply multiply without ‘significant’ improvements?
Not necessarily. If you got rejected, it could be for a number of reasons (eg class construction). So I would just pursue your career as you were going to. Get a promo, change teams, change jobs, etc
I've commented on a few of these posts recently and I think my answer to you is the same as it was to the other folks. It doesn't really sound like it's worth it, unless you can get the blessing of the firm and some form of sponsorship to return. It would be ideal if they paid for part/all of school (even though that's extremely unlikely), but even a firm commitment that you can go, take a two year break to build your network, try other things, etc, with a guarantee that you can return to the firm, would make it worth it.
Otherwise, it probably just makes sense to stay put. I went to B-School while in a post MBA PE role, but I didn't like my firm or the geo and knew I was going to have to make a switch. I was also burnt out, had made enough money to pay for school, and wanted the two years to take a break and explore career options. So for me, even though it wasn't a direct career change benefit, I found a ton of value in going back to school. Made lifelong friends, had a blast, wouldn't change the decision at all. With that said, I wasn't that happy with where I was. You on the otherhand, like the firm you're at, like the space you're in, it's kind of only downhill for you unless you can get into a H/S and uplevel the firm you're at and even then, grass isn't always greener. You could end up at the ideal, brand name, early stage shop, only to realize it's actually not that great, you have a partner that doesn't love you, etc.
I just re-read your post and you talk about, changing geos, learning more, etc. I would say changing geos makes some sense, but that's on your to decide how much you care. As far as learning goes, you get out what you put into classes, but I can tell you that even coming from a top MBA, I can't say I learned much from my classes, even in the "advanced" level classes. After a few years of banking/PE, you realize that the best way to really get better is just to keep grinding away on deals, developing some deep sector expertise, etc. With that said, it's not all a waste, there are definitely interesting classes and if you take classes outside of your comfort zone, there is plenty to learn, but assuming you did some banking to a few years of Growth Equity, you'll basically know most/all of the accounting/finance/modeling things you'll need. This is coming from someone who also took 0 finance classes in undergrad and felt similarly to you, only to realize that there wasn't much more I could learn from a textbook in school and/or some of the stuff we were taught was just not used in industry (like running a DCF on everything).
Closing thoughts, I don't mean to discourage you, and frankly, I like to encourage people to do B-School if you find the right pocket of time to go. It may even be worth it for you to apply and see where you get in and what happens. I do think there needs to be some impetus for you to go though, more than just a general idea that you'd like the branding and to clean up some very minor knowledge gaps around finance. You want to take a break, you want to explore/try being a consultant for the summer, you're single and want to travel and party for two years, you have a small base of friends and want more social connections as you age, you have enough money saved and want to take your career in a different direction, etc. All of those things are fine reasons to leave a good job for if you're not that happy. To me, it sounds like you are pretty happy and you're seeking a incremental gain at a massive risk of losing a job you like where you're on a good trajectory. Figure out which you'd regret more, leaving your job now or looking back at life and not having done an MBA.
This is a really helpful thread to read through. As a follow-up question which may end up being helpful for the OP as well, how do people feel about Wharton as it relates to the bschool decision?
For context, I'm currently a 2nd year associate in a similar boat (MM PE, good role, good WLB, solid reviews, likely partner track) and was just accepted into Wharton with $$. I'm considering attending bschool for all the reasons OP suggested (building out network, 2 kickass years of new friendships + travel, potential relocation). I doubt I'd regret delaying my career and salary progression for 2 years when I weigh them against the personal experiences and friendships I'd get through business school.
I hear you all on attempting to de-risk the decision by seeing if my current fund would take me back after 2 years, but curious if any guidance if I don't get a good response there? What is PE recruiting like out of W?
And want to flag - I typically am not one to care about arbitrary splitting of prestige rankings, however it seems like there actually might be a material difference between H/S and W for private equity in particular, given the limited seats to be had at the post-MBA level.
Bump
My biggest concern with the PE folks considering this jump - and I don't in any way want to discourage you because B-school really IS a fun 2-years - I just rarely see the value in hopping off of a partner-track trajectory at a firm they actually LIKE to do it (assuming they're earning a market leading comp, are being groomed for advancement, etc.).
Granted at the level of HSW you're playing with house money, but still...
I also generally find that their current networks are good enough to leverage for anything they would want - between elite undergrads and PE relationships and recruiters and portcos, etc.
I highly urge you to at least get assurances from your firm on coming back in case recruiting doesn't go your way or worse - it does and you lateral or level up to a place that's nowhere near as good to you as your previous firm was.
But that's just my .02
Bump
I was very gung ho on one of the top two business school from a name brand PE firm and now, as my second year is about to wrap up, here are my thoughts.
I think more and more you can go through the mental gymnastics of whether or not it's worth it. You can outline the paths where it will be helpful, and you can outline the paths where it won't. Ultimately, you can see your career through the lens of any story that you tell yourself. I don't think that necessarily is valuable.
1. I think there has to be at least one key thing you want out of it that it is inconvenient (not necessarily impossible) to do from your current position (e.g., "I want to be in the bay").
2. I think you know deep down whether or not it is an experience you want to have.
Everyone in private markets investing at the caliber that goes to H/S will have plenty of money now and in the future. The marginal dollar does not give you much utility. What you are playing for with an MBA is whether or not it is an experience you want to have. Everyone opts in. You are all there because you thought the experience of getting an MBA is worth it. Go if you think it is a way that you want to spend two years. Ask yourself: is this an experience in life that I want to have?
I think that is the real question that people from PE/GE should ask themselves. Your career will be fine. You are not solving for your career with this decision.
Autem quia omnis aut rerum qui. Repellat possimus accusamus nesciunt explicabo id quod nobis. Veniam laboriosam minima ea mollitia incidunt ex quam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...