No Return Offer

Hey Guys,

I'm a junior currently interning at a LMM PE firm. I'm only four weeks in, but I'm already working on a couple of live deals and am getting a ton of experience. However, just yesterday, one of the associates informed me that I won't be receiving a return offer. Although, he said that I was producing quality work, he explained that due to a change in "business needs" they're now looking to hire someone who has more experience. I feel pretty dejected because I really wanted to stay at this firm long-term, and I want to break into PE right out of undergrad. I'm struggling to stay motivated, since I know that whatever I do here, the decision has been made.

My question is, what percentage of summer private equity interns usually get return offers? Is it higher or lower than investment banking? Also, how should I position myself for FT recruiting? I go to a target school and my resume is fairly strong (good GPA, strong internship experiences), but I know that FT recruiting often times is a crapshoot. If anyone has advice that would be greatly appreciated. Thanks!

 
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I would say that undergrad summer internships at PE shops are far more scarce than IB so you're not in a bad place in that respect. I have no data to show but I would expect undergrad return offers to be more common in IB vs. PE as well. Breaking in to PE directly out of undergrad is not common as I'm sure you know.

I wouldn't let it get to your head, just continue producing quality work. You're gaining experience in exactly what you want to do FT, that should motivate you enough and hopefully you enjoy doing it. Losing motivation and allowing your work to suffer certainly would not reference well. Make them want to give you an offer, if they don't and your work really is first-rate, then screw them - their loss.

 

I think what @and0ne101 said is a good start. I'm sure on here you could piece together some PE shops that recruit from undergrad. Talking with alumni in the industry may be especially helpful as many firms short list a few schools for recruiting. I wouldn't completely rule out the more traditional IB route either, your internship with IB experience could potentially lead to a better opportunity than just direct to PE.

 

What I would do right now if I were you is if you’re still interested in PE post-UG then start making a list of PE firms that recruit FT and reaching out to people at those shops to set up calls/coffee chats before actual FT analyst recruiting begins. Definitely try to see if you have any alumni at those shops and go from there, you’re not in a bad spot, just hustle a bit more and you should be able to land a FT slot at a PE shop

 

I think you shouldn't concern yourself with percentages, just focus on yourself. Straight to PE is tough, and it often doesn't turn out that great in the medium term anyway. Imagine getting the offer then getting cut for the same "business needs" a year or two later. Other shops would question your technical training, and banks might be hard to convince regarding interest/technicals for an experienced hire.

You're bummed because you had some level of luck, then it ran out. That's the game. This is when you show how resourceful you actually are. If you've come this far, I think you already know what you need to do when it comes to FT recruiting. Go hard for both buy and sell sides, and you'll get something. If your luck comes back, you might still get to go straight to buy side.

Don't misconstrue the luck mentions. I know it takes a lot of hard work, but the reality is that just about any direct to buy side trajectory is a godsend. I would know.

JUST DO IT. Don't let your memes be dreams.
 

Yeah. I've definitely caught some lucky breaks during my life, and haven't really stopped to think about how fortunate I am. Thanks for giving me something to reflect on, and I'll keep you posted if there's any good news.

 

The majority of the investment banking firms are OK with you straight up telling them you want the 2 & out option and exit to PE. So, your story should be something like you knew an offer was not possible at your current employer but goal has always been PE so you wanted the opportunity to boost your resume for buyside recruiting. Being as direct as this may deter you if you have even the slightest insecurities -- but it works.

As a WSO mentor -- your welcome for the free advice ;)

 

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