Is Private Equity viewed as a stepping stone?

How do analysts recruiting for PE view it. Do they see PE as a learning experience and a tool to help them get to where they ultimately want to go, or do they view it as a legitimate place for a career. If the latter, then why start out at a Megafund as opposed to a Middle Market where they could have more future visibility and potentially avoid the MBA altogether.

Comments (14)

Apr 6, 2020 - 5:08pm

Megafunds can be a stepping stone to hedge funds but it's not necessary. Strong PE experience can be a stepping stone to business school or entrepreneurship but the real answer to all of this is that the farther you get in your career the less there is a charted out path for you. In banking most of my peers were aiming for the same thing (PE or associate promote). In PE everyone has different goals for what they want next.

Apr 6, 2020 - 4:17pm

The only stepping stone that I've seen is the ones who eventually want to start their own. Other than that they have a career in PE at a shop, get fired and go to another, change careers, take an opportunity with a friend, or retire from the industry all together.

Apr 6, 2020 - 4:52pm

No. The only higher place than private equity is heaven. The years spent in private equity will stand as the magnum opus of ANY financial professionals life. The rest of us mortal bankers have to roam the planet piling for scraps, while the demigods of the PE world enjoy their carried interest with Victoria's Secret supermodels in G6's.

I don't know... Yeah. Almost definitely yes.

  • Research Associate in HF - Event
Apr 7, 2020 - 5:54pm

I used to be in PE and can speak for myself and my entire banking class when i say that it's 95% herd mentality within a subset of overachievers who are highly motivated by $. PE is definitely not viewed by someone about to enter that job as stepping stone to HFs even though people do eventually do that. Someone who wants to be at a HF will go there directly.

  • Analyst 1 in IB - Ind
Apr 8, 2020 - 1:15am

Hey man, what was the transition like from PE to HF? And how much of your investing style was shaped by your time in PE. I'm a first year analyst in the thick of PE recruiting. I want to eventually end up on the public side, but quite frankly, I don't think I am ready. I have only started really, truly having an interest in investing in the last 2 years and I think 2 years of banking + 2 years of PE would give me the time (and experience) to develop my own investing style. Alternatively, I could gut out 3 years as an analyst and then make the jump a year sooner, but I feel like there are valid lessons to be learned from a few years of private investing. Am i thinking about this correctly, and is there any advice you would give to yourself as a first year analyst?

Apologies for the wall of text

Aug 10, 2020 - 5:33pm
Start Discussion

Popular Content See all

The lighter side of IB! (Hopefully)
+55IBby 1st Year Analyst in Investment Banking - Mergers and Acquisitions">Analyst 1 in IB-M&A
Why aren't Asians/Indians/Middle Eastern considered diversity
+32IBby Intern in Investment Banking - Industry/Coverage">Intern in IB - Ind
The "right" blue in excel
+17REby Portfolio Manager in Real Estate - Commercial">PM in RE - Comm
Leaving New York
+14IBby Intern in Investment Banking - Industry/Coverage">Intern in IB - Ind
Do I Count as Diversity?
+12IBby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A
Is it worth leaving banking if I have it pretty good already
+11IBby 1st Year Analyst in Investment Banking - Industry/Coverage">Analyst 1 in IB - Ind

Total Avg Compensation

October 2020 Private Equity

  • Principal (6) $693
  • Director/MD (14) $640
  • Vice President (54) $362
  • 3rd+ Year Associate (60) $272
  • 2nd Year Associate (112) $246
  • 1st Year Associate (242) $222
  • 3rd+ Year Analyst (23) $162
  • 2nd Year Analyst (52) $141
  • 1st Year Analyst (152) $118
  • Intern/Summer Associate (17) $66
  • Intern/Summer Analyst (168) $60

Leaderboard See all

LonLonMilk's picture
Jamoldo's picture
Secyh62's picture
CompBanker's picture
redever's picture
Addinator's picture
NuckFuts's picture
frgna's picture
bolo up's picture
bolo up
Edifice's picture