My odds post MBA to join MF PE in the US? IBD needed?
Hey WSO,
Looking for some guidance from PE professionals on how to frame my background for PE recruiting Post-MBA.
My background is a bit unique:
1 yr of transaction advisory service (financial due diligence and M&A) in China.
3 years of PE in China. $400m AUM. Retail&consumer sector.
3 years of boutique consulting firm co-founder, providing pre investment commercial due diligence services for funds and growth strategy service for enterprises. Retail&consumer sector.Clients: Mainly Chinese funds and enterprises including portfolio company of Warburg Pincus and IDG capital etc.
Now I'm heading to CBS for my MBA.
I'm trying to answer the following questions:
I. After CBS MBA. if targeting MF PE, what are my odds? Will my experience (Chinese PE and Cofounding and running consulting firm) be recognized by PEs in the US?
II. If the odds are low, what about UMM PEs? and do I need to get in to IBD M&A first?
III. What role out of business school would I be recruiting for? Senior Associate?
IV. How should I approach my summer internship? Would I be required, in your view, to get a PE role given my lack of experience specifically doing PE in US? Does doing banking for a summer make sense?
Thanks for the advice!
Best Regards
Odds for MF PE in the US? Or China? If in the US, very low
Most PE funds in US are on recruitment cycles. And US PE is very different than China PE. And to be frank, US style PE in China is non-existent. Its mostly minority, venture and not the typical high yield, lbo, management buyout. PE is rarely or ever in control and at the whims of the Chinese founder and his relationships. Chinese companies are still 1st generation, without them, it would be hard to manage the company.
To be honest, you might not even pass the US PE test for associates. China experience is very different.
Only way to get into US PE, is relationships or have the your Chinese firms open up a US office. And even if they do, you will be at a disadvantage unless you do co-investments or tag along with other US shops... So if you are under 30, get an MBA and join a US firm.
Thank you so much for the reply!!
I'm aware that there is a huge difference in PE industry between Chinese and US.
In China, PE can hardly be called PE, they are mostly focusing on growing stage. Many reasons like you mentioned many firms are still in 1st generation. And also the culture makes people dislike capital, call it "root of all evil"; regulations in mainland discourage or ban LBO leverage; many firm are in for quick money and cant even survive to LBO stage; and unforeseeable policy changes ...
I recently received CBS MBA offer, after CBS, what are my odds at MF PE? or MM PE? If I want to join PE in the US do I need IBD M&A experience first?
Thank you!
Going to business school allows you to reset and change. For the summer internship, you might want to see if you can get a gig at a US PE shop, credit or HF and then network. Most of the large PE firms are very institutionalized. So you might be able to find the senior guy who worked in Asia and now back in US or London and get his take if you can get a meeting. PE/HF jobs (at the good shops) are hard to come by. First few years as an associate is really a test and to see if you can add value or think differently than most. You be surprised and how many of these candidates get cut or are told, you are not getting carry or promoted so move on. We see many of these CVs and its either they are crappy buyside instincts, or MD doesn't like them. Buyside is really not for everyone; in fact its actually quite hard compared to IB where you can kiss ass and coast to a nice paycheck and push the work to juniors. (my friends all do this as they even admitted bayside is too stressful)
Further, PE in US becoming more of participating in auctions unless you have key relationships or the target is family owned. Or you buy negative ebitda businesses and do turnarounds. As most boards have to cover their butt and go through an auction process. Good luck
Nonexistent
Hate the be the bearer of bad news, but I don't see this happening. Any US PE fund that looks at your CV is going to think you want to be in China long term. Why should they take the risk of hiring you out of b-school? Especially when there are so many good US candidates and PE doesn't sponsor many visas to begin with. Not to mention the the difference in work experience, US and China WE is not always comparable. Sorry man, but I just don't see it happening.
Now if you want to spin this as working for a US PE firm in China, that's a very different story. I'd push for that if I were in your shoes.
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