Discussion on Pros / Cons of Lateral IB if goal is to break into Private Equity
Hey guys, I know this has been asked numerous times and there are multiple variables which makes it impossible to make it a black/white answer. But I'd really appreciate any opinions on this matter if you have any insight (experienced bankers, success buy-side associates, etc.)
I've been reading various posts, including the PE recruiting FAQ, and have heard many of these analysts in my position have trouble landing interviews as these spots are reserved for the higher BB analysts (GS, MS, JPM)
Is the barrier to PE that high if you don't have the BB name on your resume? The reason I ask is because I hear so many different mixed opinions:
1) some say that as long as you network and reach out to headhunters aggressively, it's more your own effort and experience in your group that determines your PE success
2) others say that because GS, MS, JPM always get first looks and are viewed as the "cream of the crop", being at a MM is a disadvantage, which makes the cost of lateralling worth it if one is to transition into PE.
To clarify, the goal is NOT a Megafund but any decently sized shop in PE
Thanks for your time
i will be in same position as you...curious to see what others say.
not really unless you were at a terrible/no-name firm
I hate to be the one who asks this, but what would be considered a terrible/no-name firm. These days I'm not sure what's considered a good bank or not that has decent exit opportunities.
Obviously most bulge brackets are off this list, but what about smaller boutiques (William BLair, Macquarie, Imperial Capital) and MM firms or Low Bulge Bracket (i.e. HLHZ, RBC, Wells Fargo, Citi, UBS )?
If you're in one of the above banks in either boutique or MM, would a jump to GS,MS,JPM be recommended if ultimate goal is to break into any decent sized PE fund?
I ve seen all of the above at PE funds. Just look at your peers at those places and see where the exit to. If you are satisfied with what you see then stay put. If not, lateral up and go from there.
You are going to get ripped apart for this. Inaccuracies abound.
Have you talked to Headhunters? If you are a first year at a MM, go through the process and see how your interview placement goes. If you get no looks, by all means, lateral to a better brand name. People think that if you don't follow the exact timeline for PE recruiting that you are SOL, but I get at least one email every week asking if I know a 2nd or 3rd year analyst looking for an immediate start.
Schrutefarms, do you work at a Megafund in NYC?
I work at MM fund, came from a MM bank. My advantage was deal flow - In my first year, I was on two closed M&A transactions which really set me apart during interviews.
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