Guys, what is the best background for getting a job in PE: investment banking, equity research, or management consulting?
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As much as I would love to troll, I realize that you might be asking this seriously. Investment banking is by far the best background for PE. A few make it from management consulting and those two probably make up 95+% of the people that work in PE.
Thanks. And how about research? Is it no way to transfer from ER to PE? ER people probably have way better technical skills, which is what matters in a buy-side, right?
I'm sure people from ER have found a way, but it's far less likely. ER does not build better technical skills than IBD for the modeling work that is done for PE.
ER would align itself better with a HF.
Regarding levels of firm, it really depends and there is no clearcut answers. Some PE firms are very fond of taking consultants so in that case an MBB might outweigh a boutique investment bank. In other firms, they might really value the modeling and deal experience that comes with banking and would rather take any form of banker over a consultant. People in ER don't really even factor into this conversation as so few would make the jump from ER to PE.
For the record (and not to be a dick but) it might benefit you to search around the forum before posting. The questions you're asking are pretty rudimentary which is why you won't get too many serious responses.
And another question. If the level of firms is different, is IB still better than MC, and MC is better than ER for getting in PE? For example, is IB at a boutique is better than MBB? And is MC in a small firm better than ER in BB? Thank you.
Good question. I've seen some MFs have a preference for MBB management consultants over MM IB guys. But I've rarely seen any other MC guys who broke through, even in MM PE. IB at a boutique is definitely not as good as MBB. As for your last question, both wouldn't open PE doors. The skillset of ER is more geared towards HFs. The endgame a combination of skillset and prestige to some measure.
you made my day
obviously banking and there is no genuine debate about this.
you can do anything in the world but you need to think about what is likely when making career decisions, not what is possible. if all you got was ER, that's fine and don't beat yourself up over it. If you really want to do PE, I promise you if you keep your ears open for opportunity, you can get there. It may not be the most prestigious place (for that you need a top banking group or McKinsey / Bain), but you can do it.
which desk in banking is best for breaking into PE? (Originally Posted: 08/17/2006)
lev fin? M&A?
I've heard M&A is a prefferd path but to me LEveraged Finance seems more lie a related route to me.
Depends on the type of PE firms, but definitely Lev Fin for Tier-1 firms that are involved in a lot of LBOs
my friend worked at PE at a bulge bracket... all the big PE firms and recruiters were all over him..
M&A is a good start.
Probably M&A and Lev. Finance.
I've heard that the typical/traditional path is M&A and then its into PE
P.S. (note the empasis on typical/traditional)
as most people i know who made the move started off in lev fin...some even went across from M&A to LF to expedite that move. LF tend to work most closely on sponsor coverage etc, although we do cover them from M&A too. If you want to get into a good PE shop then the contacts help - just natural that you'll be working with those guys more often in LF in my opinion...
I would say lev fin is a good place as you do get exposure to LBOs and contacts at the PE shops. Or if you are in the top groups at your bank then that's a pretty good start also.
isn't SPONSORS the best way?
most PE analysts I have come into contact with came from M&A, though I was surprised that there are more than you might expect who came from Big 4 experience
FSG, LevFin, or M&A are all good places. A lot of the smaller/MM places especially like FSG/LevFin guys since they know the process.
PE is the best background for PE.
i think you should really stop thinking like this. i think people who are successfully as an investor have a well rounded experience. you should also really review what is your current status and what is the low hanging fruit for you > if equity research is the best job you can get now > are you going to reject this to wait for an IBD positions?
i never wanted to do PE. 10 years ago, all i wanted to be is to be an accountant and then a CFO. yes that is before i discover wall street oasis. yes, although it is good to prepare for a track (ivy > BB IBD > ivy MBA > PE) but in reality, things rarely happen like this. shit happens and you get derailed. just to give you an example, take a look my background:
Private School Bachelor Degree >BB1 Back Office > BB2 Back Office > BB3 Back Office > Public Master Degree > Boutique 1 IBD Internship > Boutique 2 IBD Internship > Boutique 3 ER > Started my own IBD Shop > Corporate Banking > Corporate Private Equity > Boutique IBD 4 VP.
Am I rushing to PE? No. It all depends whether a right opportunity come by: Option 1: Boutique IBD 4 VP > Boutique IBD 4 Director > Boutique IBD 4 MD Option 2: Boutique IBD 4 VP > Boutique PE 1 Director Option 3: Boutique IBD 4 > Head of Business Development for a client
And it all depends on a mix of things: 1) base pay, 2) carried interest, 3) ability to do my own deal, 4) co-investment rights, 5) available deal pipeline, 6) investor base, 7) team culture, 8) relationship with your direct boss.
uh, senior search function analyst?
Try as hard as you can to be Lloyd Blankfien's son.
Source: Deal Breaker
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