Hi all,
Want to understand how would changing from a banking analyst to a PE analyst affects one's seniority.
for example, i know most Megafunds actually have analyst program in some regions of the world, for example Blackstone has a 4 year analyst program in London, KKR has a 3/4 year analyst program in Asia. so if someone who has done say 3 years banking in BB so already at an associate level in banking and go to say KKR, would they get to an associate position at KKR straight away or do KKR actually downgrade you a year since you never have any buyside experience and it would be difficult for you to lead analysts who has buyside experiences?
I have heard different stories, one of my friend who recently went to Blackstone got downgraded a year, he has done a year of banking analyst then when he went to Blackstone he has to start over again as a first year analyst.
On another note, how does seniority matters at a PE? because PE is much less structured than a bank, some PE you will start as an associate whereas some you will start as an analyst, some analyst program in 3 years some are 4 years. so i guess my question is if you were to switch over PE firms, how would your seniority matter? cant imagine say someone who has 1 year of banking experience and 1 year buyside experience to go over to Blackstone to start as an associate just because at his old fund his position was an associate.
some people tell me in PE your seniority matters much less, it is your years of buyside experience that counts true?
I'm not sure exactly, but from what I know/have heard usually if you go through an analyst program in banking, when you move to PE you will be hired as an associate. I'm sure there could be some various cases though.
Understand your point, i know for example at TPG the entry position is associate, i.e there is no such role as analyst, therefore anyone with banking experiences will go in directly as associate since there is no level that is lower than associate.
i am interested in how will a banking analyst say after 2 years, join a megafund where they actually have an analyst program, at which level will they be placed, not sure if say a 2 year banking analyst to join a megafund and become associate and the megefund's home bred analyst have to do 3/4 years to reach associate position...
advice?
x
Ok, in London I think by has a 4 year analyst program, but of purse it is subject to it performance, if u done well then 3 years is possible.
Anyway, so u are saying banking analyst wil have to go through a 4 year analyst program rather than the 3 If u start at pe after university
at most pe firms, associates are "experienced" hires from banking / consulting (obviously, no buyside experience). For the firms that do hire analysts, they are kept around to do bitchwork for associates / vps, so the yare utilized in the same fashion as banking analysts. (as an aside, firms that do not keep an analyst pool either have the associate do the bitchwork, possibly in a 1st year / 2nd year staffing model, or farm it out to the banks)
if you're moving from a banking role into private equity, you should try to make sure that you are at least getting a titular upgrade. While not unheard of for a hiring firm to put you in analyst purgatory, it is more typical for them to just roll all experienced hires into the aassociate class.
While I can't comment on precisely how the megafunds do it in your situation described above, I can say that at the pre-MBA level the tiers are generally VERY structured. An investment banking analyst entering PE will pretty much always be classified the same as the other banking analysts (regardless of whether or not they were analysts for two or three years). For the megafunds with no "straight from undergrad" role, you're pretty much just considered a first year pre-MBA analyst/associate (depending on the title they use). For the ones with a "straight out of undergrad" role, a pre-MBA investment banking analyst would not come in as an entry level but would be considered an experienced hire and have significantly more responsibility than an entry level analyst, even if they effectively share the same title. The pre-MBA IB analyst would also be paid more and be promoted sooner.
Once you've got a couple of years of IB and PE experience all the rules go out the window. Say you're pre-MBA and done 2 years of IB and 2 years of PE and are looking for a new job. Some PE shops will hire you directly into a post-MBA role as a senior associate while others will keep you as a pre-MBA associate and essentially set you back a couple of years. From my experience, this is typically based on the recruiting requirements of the PE shop (what openings they have) as well as their perception of your ability to handle the role responsibilities.
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