Please excuse me if this has been discussed before.
It seems as if the common perception is that IBD-->PE/VC whereas S&T-->HF. I understand that these career paths make sense considering the different skill sets one builds in IBD and S&T. The overarching generalization is that sales and traders seem to interact more with hedge funds while people in IBD probably work more intimately with PE firms. Are the skill sets gained in IBD transferable enough to enable an individual to end up at a large HF? What about vice versa (from S&T to PE/VC)?
More specifically:
Acknowledging that breaking into the buy-side from undergrad is tough any way you slice it, is it possible for someone who did BB S&T their junior summer to leverage their S&T experience and get a full-time PE offer? Or is BB IBD the easiest way to PE?
Thanks!
It's actually more like IBD-->PE/VC/HF and S&T-->S&T. That's not to say that it is impossible to make a jump from S&T to any of these others. But to answer your question, BB IBD is the easiest way to PE.
S&T can certainly make the jump to HF although rarely if ever can you move to PE or VC without going back to Bschool
But when Bschool recruiting starts up, isn't the S&T guy still going to be second fiddle to those who've previously worked in IB/PE/VC?
That's an interesting question and here's my view on it- market sizing time!
I know ~10% of HBS grads go into PE and I know there are ~100 VC jobs for MBAs every year (both numbers are from credible sources).
So for PE, that's around 90 PE spots. My guess for PE, the hierarchy would be PE/IB/Consulting/Trading/everything else. So the question is, are there are enough PE/IB/Consultants to crowd out the traders? Considering McKinsey alone sends 90 BAs to HBS every year, I would think it's gotta be tough to go in as a trader.
As far as VC I think there are still enough ex-bankers and consultants (and ex-entrepreneurs) to crowd out any traders.
Since when does IBD lead to hedge funds?
Since when does IBD not lead to hedge funds?
I know lots of people that have made the transition.
Actually, a surprisingly disproportionate number of analysts at my bank's Sponsors group made the transistion to large HF (i.e. SAC, Cerberus, Eton Park). I think that was more of a function of smart kids doing well in interviews than having highly relevant skillsets.
Most of the kids in my groups did manage to get interviews with large hedge funds, but mostly for their PE side, although that could have had more to do with their preferences.
Any comments on S&T leading to PE firms?
IBD tends to lead to activist/value type hedge funds
What about Equity Research? Is it difficult to move onto a large hedge fund after a 2-year ER analyst stint?
Don't know if this helps, but I'm at a bank that paid out bonuses in the past few months and analyst bonuses were up on last year. Not sure what 2009 will be like though.
Not really sure how that would help.
Did you mean to post in another thread?
yeah...have no idea how it ended up here!
definitely not helpful, fp175. thanks for nothing. what the hell?!
j/k :) i second smuguy97's comment
i honestly know nothing about bschool admissions so cant help anyone there
Good reasoning, ideating.
So, judging from these posts, the conclusion I reach is that IBD would provide more exit opps than S&T (in regards to PE/VC/HF).
Another lesson learned, thanks!
IBD would provide considerably more exit opportunities into PE and VC than S&T, and meaningfully more than S&T on the hedge fund side as well. However, as others have outlined earlier, there are many different types of hedge funds out there and bankers are better fit for some, while those with trading backgrounds are better fit for others.
Also, interesting insights from ideating
So how about ER? Any success stories of moving from equity research to hedge funds?
I would imagine thats pretty common.
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