BB IBD Associate --> PE
People say it's incredibly difficult to go from being an IBD Associate to PE. But can you ask to go into PE in a pre-MBA analyst role (take a title and pay cut)?
Trending Content
| +117 | Is my life over after not getting GS? | 28 | 1s | |
| +70 | Best IB group on the Street | 32 | 10m | |
| +65 | Thoughts and tips on how to speak like an investment banker. | 25 | 16h | |
| +58 | BIG FOUR ARE PARADISE | 15 | 16h | |
| +48 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 23 | 8h | |
| +36 | UBS Outlook | 28 | 1d | |
| +35 | How to deal with egotistical team? | 6 | 3d | |
| +33 | Highest Paid Bankers in Toronto? | 51 | 13h | |
| +28 | Are you “less ambitious” for having long term goals outside of NYC | 13 | 15m | |
| +26 | Very ridiculous interview feedback | 13 | 58m |
Career Resources
Not really, it's very uncommon.
You could, but it is very unlikely anyone would be interested in that. The thought is good because it shows you are willing to make a sacrifice in order to further your career, but at the end of the day, there is too much risk of you searching and potentially leaving for a better opportunity. One of the reasons PE roles are hard to come by is because there isn't a lot of turnover at individual shops. From my observation, a PE firm might hire someone new every few years, as opposed to multiple people every year like you find in IB. The issue is, they may not need to fill a post-MBA role for a number of years, like when they raise a new fund, so you could be sitting there thinking, "Damn, I'm making half or 2/3rds of what my peers are making and I don't know if I even have a shot at getting promoted and moving up in the ranks at this firm, I guess I'll look and see if I have opportunities for advancement elsewhere."
Anyways, those are my thoughts. Maybe someone else has some better, less anecdotal reasoning.
Who knows, you can always try and see what happens but I've seen a large number of PE 'analyst' type positions advertised and a good portion of them will specifically say, "MBAs will not be considered".
Regards
So basically the only way to get into PE is to be in a top IBD group and recruit as a 1st-year Analyst, otherwise you missed your chance forever?
I was an investment banking associate (direct promote from analyst) that moved into PE. I think my story made a little more sense because the "traditional path" would have been to move to PE after 2-3 years in banking...which for me happened to be summer 2008. Needless to say, PE hiring was in a bit of a freeze at many funds, so most places didn't find it unreasonable that I was interviewing as an Associate.
Having said that, during my time here, I've interviewed dozens of candidates for incoming pre-MBA positions and only 2-3 have been IB Associates (and none have received an offer).
If you don't mind sharing, what size fund are you at?
Regards
For pre-MBA associate positions, good PE funds prefer individuals with analyst experience who performed at the top of their class. There are few enough spots at these funds, and enough top banking analysts, that there's no need to go outside of the box. Given the choice between hiring the analyst or hiring the associate willing to be paid the same as the analyst, I'd still pick the analyst.
As for post-MBA associate positions, good PE funds are looking for individuals who have had pre-MBA PE experience (following IB or consulting). Once again, more than enough qualified candidates that going outside of the box is not necessary (for most well-funded, legitimate sponsors with good track records).
There are exceptions to every rule. But by and large, the answer to Banker88's summary question is yes. The one very large exception is that at a very senior level, PE funds hire executives from different backgrounds (for instance, CEOs or division managers with strong operational experience, MDs who headed groups at banks, or well-respected attorneys often get brought in at the partner level of PE funds).
$1B+ middle market fund.
Post MBA IB Associate to PE (Originally Posted: 10/16/2009)
Is it possible to make the transition to PE after a two year Associate stint?
bump. i'd like to know this too.
If you work a non-PE job pre-MBA, then obtain an associate job what are the exit opps?
bump, interesting question
bump
I'm pretty sure this has been discussed before, ad-nauseum. Short answer: it's possible but not likely. You're probably between 27 and 30 by the time you start the associate position, and you're looking for exit opps? Sure, there are the occasional few who go to hedge funds or F500 biz development roles, but more often than not, I see associates and VPs just move to other banks.People generally go into associate roles at banks (post-MBA) as a career and to follow he track of associate --> VP --> SVP --> MD. It's definitely not the same as an analyst stint where everyone knows that you'll probably leave.
As a post-MBA associate with zero private equity experience, it is a definite uphill battle. You're more expensive since you have the MBA but you really have nothing to bring to the table (no industry expertise, no contacts or network, no pull with senior bankers/lawyers/etc.). It's a different skill set between a post-mba associate/VP at a bank and a post-mba associate/VP at a private equity firm. Personally speaking, I've seen some senior bankers (MD-level) come through my shop, only to be gently nudged out since they couldn't execute on making investments.
True chances of moving from IBD Associate to PE (Originally Posted: 10/09/2017)
The forum seems to suggest that it is very unlikely but if someone were at a top BB and had an MBA business schools">M7 MBA with good pre-MBA (though non IB/PE) work experience and wanted to move to PE after associate years - what are the true chances? This is assuming taking a pay cut and moving etc. are not issues - only getting a job at a LMM and up PE fund would be.
I mean it's possible but unlikely. I've mentioned before that some associates I worked with got PE interviews w/o pre MBA IB/PE experience.
The real problem that people don't talk about is that PE isn't really a long term career option unless you're already in PE. First you have to get into IB (no stroll in the park), then you have to get into PE (difficult at best), then you have to either have landed in a partner track role or somehow get promoted into a career track position. None of that is easy.
It's pretty hard to go to a reputable PE firm as a post-MBA associate. I have known people from my associate class go to LMM funds. However, there is always some "catch" to it -- e.g., bad location, first time fund, personal relationship, etc. However, if you are outside of the U.S., then that's a different story.
IB Analyst to Associate to PE (Originally Posted: 02/11/2018)
Hi All - Long time reader, first time poster. Has anyone ever come across a case where a BB IB analyst was promoted early to associate and still had opportunities to recruit for Private Equity within the early years of the career move? The data suggests its hard for IB ASO’s to make the move (most of which are post MBA), but I’m wondering if same constraints would still hinder an A-A? Really appreciate any thoughts or guidance. Thanks.
I've seen it happen. It seems quite possible to me but you're kind of wasting time the longer you stick around because your pay scale resets. That's one reason why I think even staying on as a third year analyst is best avoided if possible. I'm in IB so treat my presumptions on how they'd deal with pay with due skepticism.
Thanks. This is helpful and I appreciate the post. Could you perhaps elaborate on the steps those individuals took to transition to the buyside? I agree with you that it seems logical (why would a PE shop not take a moment to evaluate a qualified A-A from a BB), but everywhere you look people seem to shoot down the idea. After all, Wall Street is big on tradition.
I don't have that much detail to be honest. I think post-MBA associates and associates with more experience will have a much harder time. I think they just followed the normal path of working with headhunters and networking. In my conversations with headhunters who recruit exclusively for buyside shops, they wanted to know names of associates in my group. Accordingly, it is probably more common than you think.
Seen it happen plenty of times.
Do IB Associate have less chance when making a move into Private Equity? (Originally Posted: 10/07/2017)
Hi,
I worked as an IB Analyst with BAML for 2 years and moved to a boutique as an Associate for a year. Now I want to make a move into private equity and want to understand if this becomes difficult at an Associate level, though I saved my one year of Analyst life previously.
Thanks
It's much easier if you're an analyst promoted to associate instead of a post-MBA associate.
Thanks
Eos tenetur ducimus beatae at est distinctio molestiae itaque. Veritatis suscipit omnis magnam.
Quia explicabo quod iusto debitis. Omnis aut laudantium non omnis repellendus nihil dolores. Alias distinctio itaque amet dolores.
Earum enim totam ex facilis accusamus. Dignissimos sapiente unde amet adipisci sit.
Eum doloribus alias libero aut sequi quae qui aut. Deleniti in dicta est consequatur delectus.
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...
Minima doloribus sit consequatur corrupti. A expedita dolorem inventore quod provident. Consequatur vitae culpa sint veniam voluptatibus rerum. Tempore ut delectus eum quis. Non animi et iure blanditiis culpa vero ut aut. Unde voluptate et alias atque consequuntur dolor.
In qui omnis laborum fugiat illo. Qui soluta ut dolores assumenda voluptas voluptas. Recusandae qui qui vel repudiandae repellendus. Consequatur rem veniam similique sed veniam magni velit. Voluptatum velit rerum error maxime consequatur. Quasi omnis et eum.
Voluptas nulla accusamus fugit temporibus incidunt dicta quos. Autem mollitia aut assumenda aut sunt.
Sit repudiandae vitae at et voluptatem doloribus voluptatem culpa. Ea aperiam et dolores ullam voluptas. Est aliquid consequatur beatae deleniti veniam facere maiores.