Junior Year Summer: I-Banking Intern or Top Hedge Fund Intern

I am a rising junior and am unsure of which is the better option for me. I am currently interning this summer at a mid-market PE firm with ~8Bn AUM just to give you a sense of my experience and have a great opportunity for next summer. I connected with an alumni at a top fund in the US for a junior year summer internship (in terms of prestige its on the level of Bridgewater, Millennium, Viking Global Advisors, Canyon, etc.). I am excited because I know that it is rare to be presented an opportunity like this but at the same time I don't want to miss out on the junior year summer investment banking analyst position at some of the bulge bracket banks. I am aware that the banks give majority of their full-time offers to students who have gone through their summer internship programs and I don't want to have a tough time getting a job if I don't get a return offer from the hedge fund (which is very highly unlikely as they almost never hire out of undergrad.) Does anyone have any advice? I would really benefit from someone older in finance who has more perspective...

 

I already have the offer as we met in person and he said that they would be happy to have me but to reach out over the summer and stay in touch. I feel like can't really keep them waiting too long though because it is a top fund and I also won't know if i get an offer from the investment banks until a couple months down the line.

 

I did ask him about that and his words were something along the lines of: "Our usual hires people who have gone through some years at a top bank so that they have a good level of experience." It seemed like I would be working with a team and getting some real learning experience. He also said that I would "get out exactly what I put into it". He did frame it in a way that sounded like it would be a great learning experience.

 
Best Response

Really tough call honestly. The key question for whether you should try HF: will they at lest implicitly guarantee you a good recommendation? If they're not really looking to offer a FT offer but will gladly get on the phone afterwards to tell everyone you were a rockstar and they just don't hire out of undergrad, then i'd take it. The recommendation should be good enough to get a shot at all the major banks, etc.

If you can't get implicit guarantee I lean BB - just way too risky to bet your post college employment and I'm sure the HF guy would understand your logic.

Also, depending on how well you know HF guy I would maybe just call him and lay out what you're thinking. Remember that everyone is just another guy. When you're in school these ppl look like aloof Gods to you but as someone who is likely around the same age/ position as this alum I'd be very cool if someone wanted to go through this with me and would make sure to tell them the truth as well as I understood it.

 

I don't think that it will hurt you at all. Banking to PE is a "traditional" route. By traditional I just mean allot of people do it. It does not mean it is the only option. You can go straight into PE as an undergrad but you will be a junior.

“The only thing I know is that I know nothing, and i am no quite sure that i know that.” Socrates
 

I think both options are a waste of your potential. You should go to the mountains in Tibet and train with the monks. Concentrate every fibre of your being into mastering the skill of peace, serenity, and opening that third eye. Trust me, the exit opps are worth it.

 

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