Best Response

Depends on what firms you are looking at. Typically megafunds and large MM firms have a bias against non-first years, with the view that if you were A) good enough and B) actually interested, then you would have landed an offer first year. Of course that ignores those that didn't decide they wanted to recruit for PE until later on in their analyst stint, but for the most part, they seem OK with that.

Other firms sometimes actually prefer analysts with a little more experience, as it's easier to judge the difference in quality in analysts 12 months or 24 months after starting rather than 6-9 months, when everyone is mostly still relatively clustered together (or at least more so). As you start looking at smaller firms, you'll typically see more of these.

As far as technical proficiency, there really shouldn't be that big of a difference between a first year analyst and third year analyst - IB modeling typically just isn't terribly complicated and furthermore, tests of your technical skills will usually revolve around your modeling and investment analysis skills under a constrained time frame, so you almost always won't be building a huge complicated model, just a standard three statement lbo model and then going over merits and concerns, which are things you ought to be able to do 9 months into the job.

 

the recruiters are correct- but realize they have a vested interest in your getting hired immediately. So I would take anything they say with a grain of salt. That said, it definitely does help to recruit as a first year for a few reasons:

1) You're not pushing off the stress of recruiting to your 2nd/3rd yr- just get it done with and life will be on cruise control (relatively) for the time following recruiting season. 2) You haven't been ranked yet, and a bad ranking could ruin recruiting for you 3) Even if you don't get an offer as a first year, you'll gain invaluable interview practice that you could use in your second year.

I would make sure to tell every recruiter/pe shop interviewing me that I ll be commiting 3 years to the analyst program-not the typical two. That might rule out some options automatically and save you time with worthless headhunters.

 

Dude, if you work at a bank where megafunds doesn't even come, it means you are at a lower tier banks. Why would they give you a shot in your 2nd year when there are plenty of GS/MS second years willing to kiss their feet?

I'm guessing you want an honest answer and here it is: you didn't do well enough in college recruiting and the first-year recruiting. As of this moment, you're fucked. Your chance of getting into BX/KKR/Carlyle/Bain/TPG is 0.

 

Thanks fgh123.

I was using KKR as an example of a situation but I am asking these questions for both Megafunds and MMs --believe everyone would like to know.

 
Orchid:

I was hoping that these top mega funds will have a 2nd wave of recruiting? Does anyone have any insight on this?

I was answering this part of OP's question.

 

I tried to be proactive as possible but it's hard when the process is controlled by these recruiters that make bets on groups/banks who they think are the only smart ones to get the job.

I have tried calling recruiters and they do not return phone calls. The people I tried to reach out to at these firms have said that the recruiters control the process etc etc. and I'm not the only one experiencing this. Unfortunately I didn't go to one of these top ivy league schools and have connections at buy-side shops it's not that easy, although I did make it into a Bulge Bracket.

I was just asking in general is there a 2nd wave. And if anyone knows about middle markets that are solid but haven't started their process. Believe me I have been more proactive than you can imagine, however there is a thin line between being proactive and being aggressive. I don't want to ruin any chance I have by calling the recruiter 50 more times.

 

Most sub-$1 billion funds start recruiting in the fall through winter seasons and target 2nd and 3rd year analysts. I did most of my interviewing in the October - February timeframe of my 3rd year at a MM bank. If you don't get a PE job within 6 months of starting, don't worry.

Also, as I've said again and again, this isn't even that much fun of a job and isn't really super interesting overall unless you are a real deal freak. So, try not to stress too much.

 

Absolutely do it.

Also I'm a bit surprised about the lack of attention you're getting. May just be your group or undergrd institution that is the dead fish on your resume. Have head hunters reached out to you? Have you reached out to them?

FYI, DB has historically places extremely well into PE. UBS has as well and so has Citi.

Obviously there is a new status quo post-crisis. But a lot of the megafund guys I know are from DB, UBS and Citi (less so).

 
Marcus_Halberstram:
Absolutely do it.

Also I'm a bit surprised about the lack of attention you're getting. May just be your group or undergrd institution that is the dead fish on your resume. Have head hunters reached out to you? Have you reached out to them?

FYI, DB has historically places extremely well into PE. UBS has as well and so has Citi.

Obviously there is a new status quo post-crisis. But a lot of the megafund guys I know are from DB, UBS and Citi (less so).

Do you know how db does nowadays? I'm just curious because I spoke to an alum at a decent db coverage group, and he told me his analysts haven't been placing well in buyside last couple of years.
 

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