Breaking into megafund from MBA

Hello,

I think a lot of people who go to megafunds do 2 years IBD -> 2 years PE -> Top MBA -> Megafund.

How is p/e recruiting at top bschools? I assume there is a lot of competition for these slots. If someone were to go to bschool directly from banking would he be at a significant disadvantage to those who had the extra 2 years of PE? Is it even possible to break in at an associate level?

Since many pre-MBA associate PE firms require 2 and out, what's the point of doing pre-mba PE (with the exception of getting into bschool) if one wants to do post MBA pe?

Comments (29)

Nov 12, 2010

my understanding:
there are less post mba pe jobs than pre mba -> unless there is a ridiculously good economy there will be people with banking and PE experience competing with you even if you are at a top MBA program...

Nov 12, 2010

Am also curious about this. Is there formal PE recruiting at b-school (for VP hiring) or is it more through your network? Thanks a lot

Jan 27, 2011
acronymous:

Am also curious about this. Is there formal PE recruiting at b-school (for VP hiring) or is it more through your network? Thanks a lot

VP hiring from school? Are you smoking dope???

Guys, PE hiring depends on firm culture and region...

Pre-MBA PE definitely with advantage, but very good bankers and consultants well considered

If MBA, then please HBS or Stanford, maybe Wharton or Columbia

Everything else is not a bonus...

And there are always exceptions...

Nov 12, 2010

Yes, you would absolutely be at a disadvantage to those who had 2 years of PE (versus those who only have banking experience). Funds definitely prefer post-MBAs who can 'hit the ground running' and have experience with origination. That's not to say they don't hire people with only banking experience, especially given the number of funds out there, but if you're looking to reputable / established shops, they definitely look to people who had pre-mba PE experience first.

I'd say that if you knew that PE was the only thing you wanted to do, you would probably go to a shop that didn't have a 2 year and out program.

For PE shops, hiring MBAs is already costly enough; they really don't need associates that would need hand holding for the first year. Second, most shops hire senior associates/VPs based on need and openings. There is no formalized 'class' for these positions.

Nov 12, 2010

Huge disadvantage without pre-mba PE experience. Heck, some people with pre-mba PE experience go back in to banking (since they don't want to take a pay cut coming out of an MBA) because there are far fewer post-mba PE spots.

Nov 12, 2010

interesting.

two candidates:

GS/MS good group > HBS
vs
MBB > growth equity (5-10B) > HBS

which one will megafunds prefer?

Nov 12, 2010

Question: what if you worked in PE as an undergraduate (during school and over the summer) and then went into banking and then back to b school -- would this be seen as similar to the guy who did two years PE after banking (I realize that the experience would probably not be seen exactly the same)?

fdba Emory Blaine and BBA or otherwise trying to find the perfect pseudonym.

Nov 12, 2010
BBA:

Question: what if you worked in PE as an undergraduate (during school and over the summer) and then went into banking and then back to b school -- would this be seen as similar to the guy who did two years PE after banking (I realize that the experience would probably not be seen exactly the same)?

don't think an internship at that point would be given much weight. Two years into banking, what takes up (or should take up) most of your "Experience" section are your deals.

Nov 13, 2010
WallStreetOasis.com:
BBA:

Question: what if you worked in PE as an undergraduate (during school and over the summer) and then went into banking and then back to b school -- would this be seen as similar to the guy who did two years PE after banking (I realize that the experience would probably not be seen exactly the same)?

don't think an internship at that point would be given much weight. Two years into banking, what takes up (or should take up) most of your "Experience" section are your deals.

Dont you think the "Experience" section is over-rated? Most of the PE interviews take place 1 year before the start date, so in most cases (assuming you're doing a 2 year stint), after just 1 year of IBD, sometimes even earlier (megafunds this year started recruiting in May), 10 months. So taking that into consideration what "Deal Experience" would a PE firm expect from a 10M-1 Year IBD analyst? I mean honestly, even in the best groups on WST, I dont think you'll get any deal experience as a (barely) 1st year analyst. And if you get deal experience (not even thinking about closed deals here) it would be very superficial, the more interesting stuff being done by 2nd /3rd year analysts-makes sense as they are more experienced. This was my observation after talking with countless analysts from some very busy groups. thoughts please?

Jan 25, 2011
BBA:

Question: what if you worked in PE as an undergraduate (during school and over the summer) and then went into banking and then back to b school -- would this be seen as similar to the guy who did two years PE after banking (I realize that the experience would probably not be seen exactly the same)?

This advice comes straight from Oxbridge, Glocap, and SG: they only care about FT experience. Your internships and pre-graduation work means nothing, because they are wise to the fact that it was mostly bullshit.

Jan 29, 2011
apprentice7697:
BBA:

Question: what if you worked in PE as an undergraduate (during school and over the summer) and then went into banking and then back to b school -- would this be seen as similar to the guy who did two years PE after banking (I realize that the experience would probably not be seen exactly the same)?

This advice comes straight from Oxbridge, Glocap, and SG: they only care about FT experience. Your internships and pre-graduation work means nothing, because they are wise to the fact that it was mostly bullshit.

Gracias

fdba Emory Blaine and BBA or otherwise trying to find the perfect pseudonym.

Nov 18, 2010

I worked in Pre-MBA PE at a sizable PE Fund before my program ended... I can speak to post-MBA recruiting at the mega ($10bn+) and larger funds ($5bn+), coming from the direct route (lateraling), I was in the pools of recruiting with MBAs recruiting for fund jobs.

Most of the funds you would consider "mega" or "top-tier" rarely recruit through the career center. They'll get the resume book and cold call students who they think have the right background and recruit very stealthily.

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Nov 18, 2010

^^^ Yeah I assume that was the case. Probably easiest way is to join one of those VC/PE clubs at your bschool, get your name in the resume book, attend their "speaker events" and hope for phone calls.

Jan 27, 2011
lolercoasterrr:

^^^ Yeah I assume that was the case. Probably easiest way is to join one of those VC/PE clubs at your bschool, get your name in the resume book, attend their "speaker events" and hope for phone calls.

working through your contacts / people you already know working at those firms is another primary method... because as discussed above, they typically won't do standard resume drops and all that even at best schools

Jan 27, 2011
  1. There are less spots post MBA and they are certainly highly competitive - no matter what program you are in (though 99% of the time you'd be at HBS or StanforD)... You should read the legendary post by 10x leverage. He goes into this in depth and discusses how 80% of the megafund hires out of MBA were all megafunders pre-mba... on occasion, he mentions, there'll be a kid who was as MDP or some other brand name (but non-megafund) firm that get's hired... an "underdog" of sorts (with an mba from harvard, 2 years at goldman and 2 years at MDP... lol)

You can find that post on the highest rated posts under something like "former MS M&A...."

  1. There are VPs hired out of business school at times, but it's definitely not the usual and I don't know if they do that at Megafunds with rigid hiring/staffing practices... these people are like 34 and have 2 years banking and 6-7 years in PE before attending school though - and it's not common.
Jan 27, 2011
myblackberryblinks:

Hello,

I think a lot of people who go to megafunds do 2 years IBD -> 2 years PE -> Top MBA -> Megafund.

How is p/e recruiting at top bschools? I assume there is a lot of competition for these slots. If someone were to go to bschool directly from banking would he be at a significant disadvantage to those who had the extra 2 years of PE? Is it even possible to break in at an associate level?

Since many pre-MBA associate PE firms require 2 and out, what's the point of doing pre-mba PE (with the exception of getting into bschool) if one wants to do post MBA pe?

Yes, someone who goes directly from banking to MBA is at a significant disadvantage vs. someone with pre-MBA PE experience when coming out of MBA and trying to land PE job.

The point of doing pre-MBA PE if one wants to do post-MBA PE is that top PE firms will only hire MBAs with PE experience.

Jan 29, 2011

What if you have pre-MBA experience at a top tier/megafund w/o IB experience?
That is you're hired by a megafund straight out of undergrad.
Will you be at a disadvantage when it comes to megafund post-mba recruiting?

Jan 29, 2011

if you went straight into the megafund and stuck around for 3-4 years before did MBA then you should definitely be money... I think you'll be even or better than people who did 2+2

  • SpencerMakesBank
  •  Jan 31, 2011

Huh? From me reading the posts on this website I always thought the path was IB>B-School>HF or PE..

Is it smarter to get more experience after an IB analyst stint or go straight to b-school?

Jan 31, 2011
SpencerMakesBank:

Huh? From me reading the posts on this website I always thought the path was IB>B-School>HF or PE..

Is it smarter to get more experience after an IB analyst stint or go straight to b-school?

Its generally 2+2+2... i.e. 2xIBD, 2xPE, 2xMBA

Jan 31, 2011

What about Pre MBA all PE experience? I came straight from UG into around 1B PE fund and plan on being here until they kick me to the curb.... What are my opportunities compared to a traditional Top BB IB----> PE candidate?

Jan 31, 2011

I realize my above question is almost the same as drf's but i am not at a MF so i assume the answer will be different....

Feb 7, 2011

Moving to megafund post MBA with no pre-MBA PE exp is almost impossible. Even mid market funds could be a stretch depending on which MBA school you are attending. By "Top MBAs", I hope you are referring to HBS and Wharton only.

You will be ok with Columbia, Stern and Stanford if you have pre-MBA PE exp; but you will have a very difficult time with these three names without pre-MBA PE exp.

Feb 8, 2011

to me it seems like if you make it into PE after your two year banking stint it is better to just stay on if you can, MBA seems such a hassle, especially knowing you will have to go through the entire recruiting process again competing for even fewer spots

Feb 8, 2011

any PE experience pre-MBA is going to help you get in the door for interviews with a bigger PE firm...better than not having PE on your resume at all.

Feb 8, 2011
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Feb 8, 2011