How to Jump to the Buyside After Your First Year

So now that your first year bonus has hit your bank account, you're realizing that the real reason you got into banking was to get OUT of banking, and you've got your sights set on hopping to private equity as soon as possible. And why not? Why waste another year of your life being miserable if you can jump to the next rung up the ladder early?

I posted this as a comment in another thread, but thought it would be useful reading for every current monkey looking to get out of banking early and jump to the buyside. Hopefully my experience is helpful to some others:

Proactivity and networking are key. I decided pretty early that I wanted to get over to the buyside as fast as I could. So I made a list of PE shops that focused on technology (my area of interest) and figured out which I thought would be a fit for me. As an analyst, you should be well practiced at making lists of financial sponsors, so use it to your advantage. My initial list was probably 50+ firms, which I then whittled to 20 "top targets" and another 20 "second choices". Once you have this list, figure out how you can get an "in". Don't cold call or cold email except as your last resort. You need a warm intro. Hop on LinkedIn, ask your parents, ask family friends, any favorite professors from college, etc. Find someone that knows someone, its 100x better than a cold call, especially when you're asking for special treatment like getting hired a year early.

Simultaneously, make a list of headhunters. Some firms focus on PE generally, some have specific strengths in certain types of PE (VC, mid market, name brand, certain industries, etc). Figure out who they are - ask older analysts who they've worked with. There are also lists on this board if you search. Most analysts just wait for headhunters to call. You should proactively reach out - they will talk to you. Again, it helps if you can drop a mutual acquaintance - "You placed John Smith at Battery Ventures last year, and he suggested I contact you." Remember, they get paid if they place you, so they'll be glad to receive your resume and make some introductions if you're a good candidate.

If you want to get out in front of everyone else, you've got to make it a priority. It takes work and you've got to get over your fear of rejection. But the payoff is worth it.

  • Capt K
    "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham
 
Best Response
TheBenevolent:
were you at a BB or MM firm? Do you think its worth the time and effort to make a list/get in touch with headhunters if you are at a MM firm? Or is it better to try to directly reach out since you are not at MS M&A or GS TMT so headhunters won't be that interested in you

According to who? Head hunters don't just focus on MS M&A or GS TMT... Wall Street is a lot bigger than you think lil buddy...

I know a guy that went from CS S&T to Magnetar. MS and GS sure does look great but it will not dictate where you will end up.

"The higher up the mountain, the more treacherous the path" -Frank Underwood
 
TheBenevolent:
were you at a BB or MM firm? Do you think its worth the time and effort to make a list/get in touch with headhunters if you are at a MM firm? Or is it better to try to directly reach out since you are not at MS M&A or GS TMT so headhunters won't be that interested in you
I was at a MM firm, and yes, it is definitely worth the time and effort. In fact, I'd say the time and effort are even more critical since you're not going to have the same volume of headhunters banging down your door as you would at a large BB bank. Directly reaching out without a connection is nearly always futile - most of the time they're running their process through a headhunter anyway.

And you're completely incorrect that headhunters won't be interested in you. The perception on this board has gotten warped far beyond the real world in terms of importance of prestige. Some of the best analysts I knew, and some of the best associates and partners I've worked with have not been from top 5 schools or top tier BB banks. Sure it helps, but if you have good deal experience, know your shit, and are a good interviewer, you'll have plenty of success (I interviewed with firms like Carlyle, TCV, BAML Capital, HIG, and more through headhunter connections).

- Capt K - "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham
 

This may be comming from a place of ignorance, but isn't it generally better to stick out your second year if you can? Every PE associate I know (which is few) all completed their two years & two of them took their extra 3rd yr offer. Your bosses (VP's & MD's) can be excellent resources for PE recruiting.

Also, I've only been working for a little while now, but am already getting close with some of the other analysts. I could see where this network could be helpful down the road & it wouldn't be adventageous to bail half way through. Just my thoughts for what it's worth.

Ace all your PE interview questions with the WSO Private Equity Prep Pack: http://www.wallstreetoasis.com/guide/private-equity-interview-prep-questions
 

Sure, I definitely agree that you don't want to burn bridges. But you'll see once you've been working a little while longer that the learning curve begins to flatten out (in my opinion). By a few months into your second year, you've learned probably 85-90% of everything you're going to learn as an analyst, so I just felt it was more efficient to keep on climbing.

Of course you want to try to leave on a good note, and definitely, definitely stay in touch with your analyst class - you're absolutely right that they become an excellent network over time.

- Capt K - "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham
 

Rerum ut et molestiae ipsa et veniam delectus. Nisi voluptatem non ut voluptatibus. Qui tempore tempora fugit ipsam voluptatem.

Repellat dolores quia necessitatibus nulla corporis consequatur ea dolorum. Itaque doloremque numquam in natus quis. Ea omnis esse minima amet in omnis tenetur corrupti. Possimus occaecati in nihil itaque.

Aperiam deleniti non architecto quod porro earum ratione. Dolorem ipsam libero qui laudantium. Placeat qui ea sint itaque eaque ipsa sit. Commodi quos rem sint nostrum.

Autem officiis neque sequi perspiciatis quibusdam aut facilis. Vero sit ullam aliquam vitae dolor ea. Aut et ipsum ipsa. Distinctio quia dolore corporis ratione.

- Capt K - "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”