Waiting until second year to recruit?
With many IB programs now switching to a full 3 year program, is there any downside to waiting until the second year to actively recruit to PE?
With many IB programs now switching to a full 3 year program, is there any downside to waiting until the second year to actively recruit to PE?
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You mean besides for having to do an extra year of toiling in IB?
don't wait until your second year unless you want to go to a hf or are really unsure of what you want to do
Why would you wait until your second year if you want to go to a HF?
no real reason to wait there either except that some very good funds don't recruit first year analysts and most analysts aren't able to prep well while get smoked during their first year
The downside is people will wonder why you didn't recruit during your first year. People assume no one would voluntarily stay an extra year in banking.
Also interested in this.... common sense would say you are better off since you will have your bearings and would have been around the block a couple more times compared to a 1st year.
Im also partial as if I go through it I will be goin next year as a 2nd year.
PE Recruiting as a second or third year (Originally Posted: 01/01/2014)
Is there a stigma among headhunters and PE funds around skipping recruiting during your first year and recruiting as a second or third year analyst instead? Would think that you'd be more technically competent later but then perhaps they might question your interest in PE or wonder if you messed up recruiting as a first year?
Depends on what firms you are looking at. Typically megafunds and large MM firms have a bias against non-first years, with the view that if you were A) good enough and B) actually interested, then you would have landed an offer first year. Of course that ignores those that didn't decide they wanted to recruit for PE until later on in their analyst stint, but for the most part, they seem OK with that.
Other firms sometimes actually prefer analysts with a little more experience, as it's easier to judge the difference in quality in analysts 12 months or 24 months after starting rather than 6-9 months, when everyone is mostly still relatively clustered together (or at least more so). As you start looking at smaller firms, you'll typically see more of these.
As far as technical proficiency, there really shouldn't be that big of a difference between a first year analyst and third year analyst - IB modeling typically just isn't terribly complicated and furthermore, tests of your technical skills will usually revolve around your modeling and investment analysis skills under a constrained time frame, so you almost always won't be building a huge complicated model, just a standard three statement lbo model and then going over merits and concerns, which are things you ought to be able to do 9 months into the job.
What about someone that spent a year doing something else, before lateraling into banking - would they be given a fair shot by the mega funds or the larger MMs?
3 year analyst programs - Better to go through PE recruiting during 1st or 2nd year? (Originally Posted: 01/14/2012)
Is it generally better to go through PE recruitment as a 1st or 2nd year analyst for those of us in 3 year programs?
While I had always assumed I would begin this process as a 2nd year, a recruiter I recently met with recently strongly advised against this saying:
A. Firms would wonder why I didn't go through recruiting last year if I was any good. B. I would be ranked within my firm which could hurt me if I am not at the top.
Is there any truth to these statements, and if so do these negatives truly outweigh the additional experience and knowledge I will have in a year?
I am primarily interested in MM PE (not megafund) if that helps.
the recruiters are correct- but realize they have a vested interest in your getting hired immediately. So I would take anything they say with a grain of salt. That said, it definitely does help to recruit as a first year for a few reasons:
1) You're not pushing off the stress of recruiting to your 2nd/3rd yr- just get it done with and life will be on cruise control (relatively) for the time following recruiting season. 2) You haven't been ranked yet, and a bad ranking could ruin recruiting for you 3) Even if you don't get an offer as a first year, you'll gain invaluable interview practice that you could use in your second year.
I would make sure to tell every recruiter/pe shop interviewing me that I ll be commiting 3 years to the analyst program-not the typical two. That might rule out some options automatically and save you time with worthless headhunters.
2nd Wave / 2nd Year PE Recruiting (Originally Posted: 03/12/2011)
Hey Guys,
So I've been thinking. There is no possible way these PE funds were able to grab the candidates they were looking for due to their inexperience. Don't think they also got the chance to see some good people at other banks.
I was hoping that these top mega funds will have a 2nd wave of recruiting? Does anyone have any insight on this?
My 2nd question is how is the process if you recruit in your 2nd year? I'm assuming you would still start in 2012 even if you recruit that year? Does anyone know of any people that have had success recruiting in their 2nd year. My buddy who works at GS/MS informed me that someone in his group got KKR their 2nd yr. Any stories like that at other banks/other groups?
The recruiters didn't come to my bank at all. It's fustrating/discouraging but I'm trying to be optimistic.
Also who has the best middle market clients that have yet to start?
Thanks guys
Dude, if you work at a bank where megafunds doesn't even come, it means you are at a lower tier banks. Why would they give you a shot in your 2nd year when there are plenty of GS/MS second years willing to kiss their feet?
I'm guessing you want an honest answer and here it is: you didn't do well enough in college recruiting and the first-year recruiting. As of this moment, you're fucked. Your chance of getting into BX/KKR/Carlyle/Bain/TPG is 0.
Thanks fgh123.
I was using KKR as an example of a situation but I am asking these questions for both Megafunds and MMs --believe everyone would like to know.
Believe it or not fgh123, not everyone wants to go to BX/KKR/Carlyle/Bain/TPG. I'm still curious about the 2nd wave of PE recruiting and what the process is like if you recruit in your 2nd year as an analyst.
I was answering this part of OP's question.
what do you mean by recruiters not coming to your bank???? U gust gotta wait for the call I guess. If it doesn't come, then make it come by being proactive and actively reaching out to them.
I tried to be proactive as possible but it's hard when the process is controlled by these recruiters that make bets on groups/banks who they think are the only smart ones to get the job.
I have tried calling recruiters and they do not return phone calls. The people I tried to reach out to at these firms have said that the recruiters control the process etc etc. and I'm not the only one experiencing this. Unfortunately I didn't go to one of these top ivy league schools and have connections at buy-side shops it's not that easy, although I did make it into a Bulge Bracket.
I was just asking in general is there a 2nd wave. And if anyone knows about middle markets that are solid but haven't started their process. Believe me I have been more proactive than you can imagine, however there is a thin line between being proactive and being aggressive. I don't want to ruin any chance I have by calling the recruiter 50 more times.
Most sub-$1 billion funds start recruiting in the fall through winter seasons and target 2nd and 3rd year analysts. I did most of my interviewing in the October - February timeframe of my 3rd year at a MM bank. If you don't get a PE job within 6 months of starting, don't worry.
Also, as I've said again and again, this isn't even that much fun of a job and isn't really super interesting overall unless you are a real deal freak. So, try not to stress too much.
Is it worth to lateral as 2nd Year BB Analyst? (for PE recruiting) (Originally Posted: 03/21/2012)
As you may already know, PE recruiting has kicked off
I am currently working in a lower/mid tier BB (UBS/DB/Barcap/Citi) in a mediocre coverage group. It hasn't been that active and I have only been on 1 live deal so far (which is on-hold).
Not surprisingly, while I have been quite proactive keeping discussions with headhunters, updating my resume, etc, I haven't gotten a single interview yet. Given that I haven't even hit the radar for MMs yet, I'm fairly certain that this will continue to be the case when megafunds come out to recruit.
I found out that there may be a lateral opportunity for me to go to GS/MS/elite boutique in a very respectable group. From a PE recruiting perspective, would it be worth a shot for me to leave my BB and lateral? How do headhunters view this? Would they write me off as a 2014 summer candidate even if I'm in a very good group?
P.S. I don't mind if my analyst years get reset (I'm more into the exit)
Absolutely do it.
Also I'm a bit surprised about the lack of attention you're getting. May just be your group or undergrd institution that is the dead fish on your resume. Have head hunters reached out to you? Have you reached out to them?
FYI, DB has historically places extremely well into PE. UBS has as well and so has Citi.
Obviously there is a new status quo post-crisis. But a lot of the megafund guys I know are from DB, UBS and Citi (less so).
If you can lateral, surely do lateral. But without a downgrade (i.e., from Analyst 2 to Analyst 2 only).
^------ um, no. If you can lateral to a top wall st group, even with a downgrade, do it.
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