From Private Equity to Investment Banking

jazz49's picture
Rank: Senior Chimp | 18

I'd like to get some input from some of the more experienced guys out there - especially if anyone has made the move from PE "back" to IB.

I've been at a fully-invested PE firm for the last couple years out of an MFin and after 3 years in Asset Management, primarily working on fundraising and with minimal investment duties (sourcing, modeling, etc). I've been told that there will be cutbacks on the deal teams but I could stay on in a client-facing IR role. I'd like to move into a HF, but since I don't have that typical base "banking training program", I'm considering moving into M&A. I'm planning on targeting Associate roles, but since these typically recruit MBA's out of school a year in advance, I'm also considering a lateral hire as an Analyst.

Would be interested to hear from anyone in a similar situation or thoughts on the move the other way at this level.

Comments (40)

Aug 12, 2013

funny, i'm looking to move from ib to ir

Aug 12, 2013

http://www.analystforum.com/phorums/read.php?1,585546
i was also very interested in this topic.
therefore i started a forum on this website.
let's see if any responses

Aug 12, 2013

Boilerbanker - great that you set up the thread on analystforum! Thanks!

I hope somebody will post their opinion... The move PE FoF -> PE shop has been widely discussed, but PE FoF -> IB not. Hence I'd really appreciate the input.

Aug 12, 2013

You need to try to get on the accelerated lists for FT interviews - those will give you the best shot at converting to IB BB analyst without interning there first.

With regard to $10bn+ funds, there aren't very many out there to begin with, and most recruit solely out of experienced analysts. Of course there are exceptions such as Silver Lake, but I am not sure how their analyst recruiting processes work.

Aug 12, 2013

How would you suggest bringing it up in conversation? Or rather, which BBs have accelerated recruiting? I know BAML does, but what about GS/MS/JPM, DB, etc.? Thanks for the response by the way.

Aug 12, 2013

They all have accelerated recruiting - once one banks starts reaching out every IB will be trying to snag the best candidates.

Aug 12, 2013

You can get into accelerated recruiting by either reaching out to the people you interviewed with for SA at BB's (assuming you did this and were wait-listed/close) or by getting a FT offer from the firm you're interning at and then trying to leverage it.

Aug 12, 2013

Can someone elaborate on how to leverage it?

Aug 12, 2013

2 billion AUM+ is not MM PE

Aug 12, 2013
futurectdoc:

2 billion AUM+ is not MM PE

What? Even the bigger $10 billion total AUM shops like Berkshire and GTCR call themselves MM PE shops, so $2 billion should definitely be called MM PE right?

Aug 12, 2013

Doubt you leverage for large cap PE - they'll look for summer analysts from top BB IBD groups from top targets. best bet is to get on the accelerated BB recruiting list through your own networking. campus presence this fall will be slim to none for next to no open spots so you have to push now.

Aug 12, 2013

Define boutique, if it's 200MM plus and they give you a reasonable offer and have decent MDs etc, why go over to IB? Most people go IB->PE->MBA->PE, but if you can go straight to PE do it.

Aug 12, 2013

A finance internship helps regardless of where its at, well as long as its not at some thing like edward jones, obviously the better the name the more it helps. But yes a PE internship will help you get a BB offer, no promise that it will land you the job but it will help.

Follow the shit your fellow monkeys say @shitWSOsays

Life is hard, it's even harder when you're stupid - John Wayne

Aug 12, 2013

If you're getting relevant transaction experience at the PE firm, it definitely helps. At the junior levels, the skillset in PE is similar to that of IB, making transitions easier.

Aug 12, 2013

I interned at a PE firm as well and it worked wonders for networking with IBs (which they encouraged), but they were very clear about not hiring undergrads. From what I have been told, it's a policy that is nearly ubiquitous in PE. They buy from bankers, so it makes sense they require their entry level analysts to be former bankers, typically with 2+ years experience -- gotta know, and be ready for, all the tricks they are going to try and pull so you can spot a pig when you see one.

Aug 12, 2013

As long as you can explain why you want to switch over to IB, it should help a lot in getting interviews/offers, especially if it is a well known PE shop.

Aug 12, 2013

No, IB is not helpful. In IB you sell / advise companies. It's the difference between being a salesman on fees vs. investing your own cash. The only overlap is the skill set you develop in M&A.

Aug 12, 2013

Wow how did you get into PE from accounting? I actually work in public accounting and PE is the goal but I didn't it was possible to get PE without IB M&A exp. with an accounting background.

Aug 12, 2013

Yea it sounds like your old MD is just doing you a solid to fill the space on your resume, rather than actually giving you a job. Just leverage it, and bs your way to either a bank or larger PE fund.

Aug 12, 2013

Dude now that is the most solid thing I've heard of anyone doing for anyone on the street. Cool guy.

Aug 12, 2013

^Agreed. Seems like he really has your back... which is rare for senior guys it seems.

Aug 12, 2013

No chance. You go with that shitty SA offer and you're only option post-grad are working in a call center.

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Aug 12, 2013

So does anyone have any actual advice? I would really appreciate it.

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Aug 12, 2013
idontwearglasses:

So does anyone have any actual advice? I would really appreciate it.

He's obviously being sarcastic.

Aug 12, 2013

I would say it's an uphill battle unless the firm you work at is well recognized. If it's a firm that not many people have heard of, then you'll have to convince IBD people why you want to go to IBD as opposed to stay at the current firm. For larger PE shops, you just won't have the pedigree necessary to secure an interview.

Aug 12, 2013
HarvardOrBust:

I would say it's an uphill battle unless the firm you work at is well recognized. If it's a firm that not many people have heard of, then you'll have to convince IBD people why you want to go to IBD as opposed to stay at the current firm. For larger PE shops, you just won't have the pedigree necessary to secure an interview.

Do you think I would be better off at a boutique IB? (to position myself for FT IBD). ..not trolling, this is my situation.

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Aug 12, 2013

How you guys fall for this troll's posts is beyond me

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Aug 12, 2013

Why do you want to go from PE to BB...sounds like your going backwards. Unless your main goal is to make MD (regardless of whether it's PE or BB) just for the sake of the title.

You said you've exceeded expectations already; stay on that track and keep exceeding expectations.

goodluck.

Aug 12, 2013

Given the current condition of the market and the fact you didn't mention that you hated being where you are at...I would stay put. I could be way off, but bringing someone in at the MD level seems a bit less likely than an internal promotion to MD. Certainly take the opportunity to look and see what is out there but I would bet that not having an MBA would make it difficult to become an MD at a BB in this day and age.

I don't know how close you are with your partners at the firm but maybe it would be worth your while to speak to them about the added benefit of going back to school. I know you don't particularly favor going back to school but if you could get into a good program if would offer you a tremendous amount as far as increasing your career potential. The network you could acquire while you are there would likely be extremely beneficial no matter what path you chose to pursue. You could potentially meet new contacts for future deal flow and possibly people who might participate in future funds. To me, bringing in money and deals would be a surefire way to get your invitation to the MD level. I just think you are fairly limited given the job market and given the lack of MBA. Unfortunately, in the upper ranks of PE, your aforementioned skills lose some of their value as creating deal flow tends to be the focus for MDs at many firms. Just my two cents. Good luck.

Regards

Aug 12, 2013
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Aug 12, 2013