Growth Equity vs BB IB Summer Analyst?
I have two offers and I really would appreciate some help clearing my thought on deciding.
Offer 1: A Tier 2 BB( think BofA, CS, Citi) in their Tech SF shop. Places really well in tech PE and GE
Offer 2: Tier 2 Top Growth Equity(Spectrum, Lead Edge, Lead Equity)
I am really interested in Growth and probably would want to exit to growth over PE after banking. But I am really wondering wether having a BB IB Background and the modeling experience compared to Sourcing, will give me a better long term optionality in my career. Also would I have an option of lateraling to tier 1 growth shops or better chance exiting from BB? And any other advice to sort of clarifying my decision would be super helpful.
I was in a similar position and decided to go the BB IB route for the optionality (still deciding between PE/HF/VC). Since you already know you want to exit to growth, I would take a Lead Edge offer (low headcount = more responsibility; very competitive comp). Just compare the GE offer with the shops that analyst in the IB group typically exit to and you should have your answer. But if you're really serious about growth, you should go straight into it because IB becomes an unnecessary use of time. Otherwise, can't go wrong with the BB IB.
Adding to this, know a friend at Lead Edge/Silversmith/Brighton Park and work is mix of sourcing and diligence so you will do ARR walkthrough/waterfall, P&L, retention summary, etc. If your end goal is tech investing, take the Lead Edge/Silvermsith/Brighton Park offer and run. Some shops like Spectrum, JMI, GA, Insight etc are all sourcing with NO diligence at all at the analyst level so be aware of that as well. I wouldn’t necessarily put some of the firms above as Tier 2 fyi.
hey! would it be possible to dm you?
Take the growth equity no question. To be honest I don’t really feel like typing out all the reasoning just trust me haha
“Just trust me” okay, college student
If your goal is growth long term, then the growth equity gig is much better. Exits will be very similar, the modelling can be learned very quickly as an associate if needed, and (most importantly) the hours in BB IB are so long just skip that BS although and take the better path. A lot of people will tell you the best career start is in IB, but after meeting a bunch of people on the buyside with different backgrounds, this is for sure not the case. BB IB are a dime a dozen and all think the same, the growth equity path will allow you to differential yourself while going more interesting work.
Would really scrutinize how good the exits have been from your BB tech group, as the mid BBs historically have struggled to compete with the EBs and Top BBs.
There’s 10 firms equal or better to what you listed, essentially TB / SL / GA / Insight + a few others. Recruiting buyside is extremely unpredictable.
Not telling you one way or another, just make sure the exits are consistently that good.
Honestly, if you are set on growth equity just take the GE offer. No point slogging away in banking if you're just going to aim for the same role post your analyst stint. If you have any inkling or doubt about whether you want to be a GE investor, then take the banking offer due to the optionality it offers you.
But based on what you've said, just take the growth equity offer and don't look back. Congratulations on landing those, it's really not easy getting either - especially the GE one.
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