Mainland China Opportunities post IB stint in USA

I don't have any insight into banking specifically regarding compensation but extrapolating from industry firms, compensation will be low (local pay) unless they put you on an expat payroll and I doubt they will do that for an entry-level position. I honestly don't see a good reason to go to China early on in your career.

Language will be the least of your worries.

Doing business in China is by far the single-most frustrating thing I have ever done (ran local VC tech fund for 5 years). Legal recourse is a joke and so is trying to find out which copy of the books is legit. Its the wild east. But, if you enjoy pollution and backroom dealing I say go for it.

Hony is a great firm, probably the best. If I remember, one of their investments returned 100x (no that's not a typo). However, those firms you mentioned rarely hire people without solid mainland China experience (and there are plenty of them).

If would start in Hong Kong. That being said, quite a few firms are shedding their workforce now and expectations in China look grim.

Sorry, wish I could give a better impression.

I second HK. Worked in Asia PE and wow the analysts get paid shit. But the Associate with tons of experience was paid very very well.

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Appreciate the insights guys, where I am coming from is

1) It would be something different, challenging, and more exciting than what my friends/peers typically do post-IB (standard buyside route in US).

2) In the distant future, I actually want to settle down in US (quality of life is incomparable and I highly value my friends and family)

3) The more I wait, the greater the opportunity cost will be for me to take a risk like this

4) Even if working in China sucks, there is a distinct exit path I can take (b-school) and transition to something else

5) Besides all that, the potential benefits from my POV are: being at the forefront of China's booming economy (never mind the latest macro data I think China will rebalance itself and grow for years to come) and seeing the opportunities that come through, making connections (hopefully) with some of the more senior people and maybe even through client interactions, and forming friendships with people at the junior levels who will one day be the decision makers

What I would be interested in isn't necessarily confined to private equity but any sort of role that encompasses the points enumerated in #5. The pay thing is semi-discouraging...from what I understand, US buyside shops pay around ~250,000$-300,000$ all in... so is ~$150,000-200,000 USD/yr equivalent out of the question for any role that a 23 yr old with IB experience can achieve in China?

Also, what about the regional offices of the western buyside shops? Does anyone know of folks who have had luck recruiting for those Asia positions straight from US IBD?

Thanks again!

For USD 150 to 200k, I hope your checking out western shops with regional offices. The trade off however will be apparent. Western shops carry a lot (and I mean a lot) of baggage operating in the mainland. Not just limited to western firm though. Recently some friends of mine at Japanese, Korean and Singaporean shops have been on the shit end of the stick.

Local, from my experience, is the exact opposite. Better pick of deals and more flexible management and less opaque financials. Then again, we had PhDs working for us at approx. USD 40k a year (not a typo).

Bottom line, if you have the money now and can stomach the lower quality lifestyle, go for the local experience. You'll be better off experience wise in the long run... Just be prepared for your local colleagues to exclude you for a while.

Do these local shops even recruit overseas? From what I understand, even the regional offices of western PE firms are staffed with mostly local talent.

How would someone from the U.S. even enter the recruiting process for a Chinese PE firm?

40k for PE analysts where I worked, was a western shop also. Keep in mind that 40k usd great for china.

Glad that I ran a search before posting the almost identical question except my preference is HK over mainland.

You will need relationships to work in any of the names you mentioned.

Wow thank you Ukon! Terrific post...

Recruit for a foreign fund in Hong Kong, many of which also have offices in mainland China. KKR, CDH, New Horizon, Hony, Sequoia, CVC, TGP, Blackstone, Carlyle, Apax pretty much all have offices.

You won't be able to recruit into a Hony or local firm, but foreign firm should be possible PROVIDED:

1) You find the right headhunter 2) You have language capability 3) You demonstrate you are able to take on responsibilities far above your pay-grade

There is no handholding on anything in Asia. As a junior associate, or an analyst at an IB, you will undertake much much more responsibilities (e.g. client coverage) than counterparts in the US. Compensation is global pay. And really guys... no megafund anywhere is paying 1st yr preMBA associates 300k USD in this market.

HK megafunds / BBs will also give you a generous expat housing package that will range from 20-30k HKD / month on top of your global salary and bonus.

Great post, a quick question, i heard that if you want to actually Chinese deals in Asia nowdays you will have to be based in the mainland either in Beijing or Shanghai for most megafunds, such as KKR, Carlyle etc. my question is that megafund in Beijing still pays global pay?