Can GCM analyst recruit for PE?
So with the incredibly accelerated timeline of PE recruiting (from what I understand, analysts start recruiting in Sept. or October of their first year as an analyst), does that mean's it's impossible for someone who starts FT in DCM or ECM to recruit for PE on-cycle their first year?
The reason I think this is that PE firms value modeling, and since the perception is that GCM analysts don't do much modeling, that would seem to preclude them from being eligible to recruit for PE firms... is this correct?
levfin will be fine for PE recruiting, DCM has a miniscule chance, ECM is fucked
Convertible/derivative ECM groups are more technical than most of DCM (besides lev fin). May have a shot there, likely not from traditional ECM though
How exactly are derivatives/convertibles groups relevant to PE?
Anyone have insight on Tech ECM to VC? Feel like this may be different since modeling isn’t required
Interested as well
Bump
you dont need to bump when the last comment before yours was 4 mins ago, stop being annoying you do this a lot lucifer
just do this so I get notifications when people reply to the thread lol
No, I feel him. More activity pushes up the thread on the homepage. It works.
Bump.
So it sounds like the answer to my original question... is basically no?
Yes. a very fat No, too. Just try to lateral internally to coverage if you want to leave. If not, it's a fine place to stay considering a much more favorable work/life balance with same-as-IB comp
Same as IB is a little inaccurate, from what I've heard don't Capital Markets guys make a smaller bonus on average than IB guys? And doesn't that difference magnify the higher up you get?
Don’t take this personally, but this thread is useless unless someone in capital markets/IBD with past capital markets recruiting experience chimes in. The incoming interns talking about no exits in DCM/ECM shouldn’t make claims with no evidence for what they’re saying other than what they’ve read on past WSO posts... Are you guys saying you know for a fact that recruiters/headhunters aren’t reaching out to top Tech ECM analysts for instance on a weekly basis?
Ultimately the exits for an ECM analyst into VC/HF/PE and corporate S&O do exist, they just won’t be the same compared to M&A or top industry. Also, will exits for ECM/DCM at GS/MS beat those for coverage at WF/DB/UBS especially if they’re able to get a year of classic IB in? I’d say very likely.
Can you shoot me a PM please? Would appreciate some insight on the topic. Agreed, WSO can get crowded with clout chasers that shit on everything non-IB
I work in capital markets at a BB. First of all it's important to understand CM is more than ECM / DCM / LevFin. Broadly yes, but there are a lot of specialized groups within those umbrellas – SPAC / Converts within ECM, Loans / Bonds within DCM, ABL / 'RX' within LevFin, structured / securitized credit, liability management, etc etc. My bank has something like 19 CM desks.
The answer heavily depends on group, but typically everyone has some sort of 'exit' – you're not stuck in CM for life. Many ECM analysts go on to work at tech / consumer / healthcare companies in some sort of strategy / finance capacity. Coming from DCM Bonds you have a shot at credit-focused asset managers (pension funds / insurers) in addition to your 'normal' corporate treasury roles. If you're on one of the technical structured finance desks, a common exit is specialized buyside HF with exposure to your product. And yes, if you're on a LevFin-esque desk in capital markets, you can participate in the recruiter-driven clown show that is on-cycle for MM+ PE and MF Credit. All of that is in addition to great internal mobility to coverage / S&T.
Recently, CM analysts from my bank have exited to MM PE, GSO, KKR Structured Credit, Carlyle Infra PE, brand-name distressed HF, VC-backed startups, strategy roles at F100s, and of course top business schools.
Will you place into BX PE, Elliott, or Sequoia? Quite frankly, no. But there's still a ton of opportunities open to you, and if you're dead set on pursuing the IB -> MF PE -> HF / HBS path, there is nothing stopping you from lateraling into coverage and getting back on that path, albeit probably a year or two behind.
Awesome! Finally, some credible and thorough information! Thanks for explaining all the possibilities!
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