MM IB vs. Private Equity FoF summer analyst, what should I take?
So I am exploiting two offers right now, one from a MM IB (think Key Bank, Fifth Third, ) at their HQ (not a major city) and one from a major Private Equity Fund of Fund (think HarbourVest, StepStone) in NYC that also does co-investments.
I've been reading through the forums and did some research to see which offer I should take, but it seems like there are pros and cons. From what I understand, it is very difficult to make the transition from a PE FoF to a PE due to the difference in skillset, but is that still the case for large PE FoFs that do co-investments? Also, what is the compensation like at a PE FoF? Any insights on which offer I should take?
Thanks guys!
Is this for your junior year internship or freshman/sophomore year internship?
It's after my junior year, so I'm also considering full-time and exit ops.
Well considering IB -> PE is generally the track and you have a PE offer, if you believe you have a solid chance of getting a FT gig post internship at the PE shop I would do PE. NYC is a bonus, on the other hand MM IB is in not in NYC would your FT offer also not be NYC? I'm not saying its better or worse to be in NYC because that is largely subjective but a point you should consider.
Dude FoF does not = PE
Oops misread that. Please defer to MaddCow's comment below.
Congrats on the offers.
Those are two of the best PE FoF shops. However, you should know PE FoF is not likely going to get you into direct PE later. The skill set is very different. PE FoF is boring as hell at the junior level in my opinion and you really don't gain great quantitative skills. Sure, you may meet with some smart PE guys but you don't exactly get access to their actual strategy on a micro scale. They give as little info as possible to get you to invest. If you can see yourself staying in the FoF / Family Office / Endowment space these would be great places to start. Lifestyle would be better here.
The MM IBs are still solid names. I'd see if you can speak with an analyst who is either at the MM IB or has recently left. Specifically, you should make sure to ask about deal flow. Are they actually doing deals or just chasing them. Ask about exits (in a way you don't sound like you're already planning yours). If they're doing good deals and the analysts are able to move to interesting opportunities after their 2 year stint, I'd personally go with the MM IB. After the internship, recruit for BB. If you don't get BB, go back to the MM and exit or lateral within 2 years.
Ohio's definitely not as fun as the coasts but I'd bet you could still have a good time, especially if college friends are headed there as well.
Can't speak to comp unfortunately.
To add, Co-invest is an added benefit in terms of building skills but I'd try to get some light on the breakdown of how many of their deals are Co-Investments (i.e. is it 75% FoF and 25% Co-Inv or 95% and 5%?)
Thank you! Appreciate the insight. I still don't know what I want to do after IB/PE FoF, and generally speaking, IB will give me more options after?
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