Do people ever regret moving to PE?

It definitely happens - there are at least two people in my group who did this over the last couple years (one is a VP, one is a director).

I'm not sure if you'll get a lot of responses from people who have made a direct transition from S&T to PE, because that should be quite rare. You don't build the skillsets typically desired for PE (re: financial modeling, company analysis) in S&T and typically people will have to do something in between like IB or consulting before being able to move to PE.

The two jobs are quite different. It really depends on what you want to do long term. PE is much slower paced - there's a lot of modeling, due diligence, monitoring involved. If you like looking at companies from a long-term perspective and like thinking like a LT investor, it could be interesting to you. If you prefer the fast pace of the markets, you don't particularly care about doing a deep dive analysis on companies to invest in them, then S&T is a better fit.

@Kanon Thanks for the insight. I don't know why I was offered a position there as I don't have much experience in modeling or analysis (beyond BSing with clients).

It's tempting, but the uphill struggle with my lack of knowledge is weighing down on me.

I'm really surprised you got an offer if you don't already have a good idea of what PE is about or have a lack of knowledge in modeling. Didn't they ask you to do a case study and assess your understanding or your reason for wanting to make such a drastic switch?

With PE, you're still dealing with other people's (LPs') money. You could get a gain for yourself if after a certain number of years you get to commit part of your salary/bonus to investments, but you're still primarily answering to investors.

You should really ask yourself where your interests lie. If you see learning new skills in PE as an uphill struggle that you're not ready or willing to commit your time to, maybe you're not interested in it enough to make that jump.

I know what PE is all about. It is just that for now my skillset is subpar to what my potential future colleagues have (Already own and read Darkside of Valuation by Damodaran and Financial Modeling by Benninga.) I haven't used this on live deals except research for my own small stock portfolio (~$200k), which I know counts for shit.

No case studies. I was just approached after having interacted with them over the last year. Don't know if they want to increase their understand within a certain field, upcomming deals, source for funding or if its an investment in current business or for the future. I have no idea why me.

This leads back to my original question; Anyone with S&T background regretting their move to PE? (S&T --> B-School --> PE, S&T --> IBD --> PE, whatever route with S&T --> PE)

Find out why you were asked to join the firm and what area you will work in.

I have met a few S&T guys in PE, but they tend to be either in fundraising or used in the exit process (rare).

Honestly, the bulk of the work isn't creating models, its originating deals and fundraising (something you may be good at). There is a trend toward outsourcing back-office (modeling) work, so I wouldn't worry too much about that.

More info would help.

x

I have a close friend of mine made the jump from S&T to MM RE PE. It is uncommon, but definitely possible. One thing I would warn you about is, is that if you like to work in a fast-paced environment, PE probably isn't for you.

The amount of time spent in a data room can drive anyone crazy. That's just my take at least. But again, from a job security stance, you are probably better off in PE.

how much sourcing is involved in this role?

First off, I would like to thank you all for contributing to this thread. Secondly, just got off the phone with the Director over there. He said it would be a rotating/loose role with some fundraising, client meetings, crank some numbers and act as a sparring partner (can't divulge much as it is regarding potential deals.) The only thing I have some experience in is sparring with clients and equity issuance.

I would take a paycut, increase the hours, slower paced, but would end up with some more applicable skills than BSing with clients. I'm leaning on declining the offer since the position is a crossover of consulting, fundraising and investor relations. Sounds cheesy to me, more or less hiring for my Blackberry. But then again, I might be wrong.

Any thoughts from you veterans in the PE field? Do you also see the red flags or am I just color blind?

Well, we have some in house fundraising guys that pull USD 250k a year plus 2% of what they raise. Definitely not a meager wage. As well, depending on how successful you are you can make partner a lot faster than investment professionals. Only two things count in a good firm, sourcing proprietary deals and sourcing capital. Owning the capital raising portion can open doors.

This seems like a good start. Besides, once your in a MM firm where you go is up to you.

I've never heard of this jump occurring given the skill set is different as mentioned above but never say never given your post, PE is slow and if your a trader as most have mentioned I'd be careful. All I can talk from is personal experience as I was in S&T and went into IB and I now understand why everyone told me that each professional is an entire different bred.There are days (most) where I miss the fast paced nature of the markets. So I'd say be true to what you want and if its PE knock the shit out of the park.

I'm probably one of the closest things on the forum to someone who went S&T --> PE. (I did it from capital markets.)

I will say that if you're used to a fast-paced environment, or working on several different things every day...you may get bored.