Quick background on me:
-2016 non-target with a BS in Finance.. major GPA 3.44, overall 3.28
-Enrolled in a 2 year rotational internal audit program in July of 2016
-Realized I hate audit and want a career in banking so I took the CFA route to gain credentials (passed L1, taking L2 this June)
I just got an interview for an unpaid PE internship at a small fund. They are a search fund that just finished their fundraising process and have now moved into searching for a company to acquire ($10-$40MM in revenues). The fund is very small (3 people listed on their site - MD, senior associate, and associate)
My question is if the interview goes well and I'm offered the position, do I take it? I would have to take out a loan to sustain myself. My end goal is obviously a full-time position in PE/HF/IB and I just want some thoughts on if this is the right route to take. I don't want to be in a position after the internship where I'm jobless and struggling to get interviews at other shops.
Search funds are great experience for freshmen/sophomore in undergrad, IMO. It's a tough sell for your position in my opinion. Think about the next steps. You get a month or two on your resume here, and then start shopping around for your next job. When people take a look at your resume, they'll be curious why you're looking so soon. Then, if you get to an actual interview it will come up again and you'll have to tell them that you're on an unpaid internship 2 years out of college. It'll be tough, but it could depend on the people at the fund. Do they have impressive backgrounds? Would they be willing to genuinely help find a place for you through their connections?
the MD has an MBA from Yale.. previously came from a top MM bank.. the senior associate is currently pursuing an MHA at Columbia. I've been applying to banks left and right after passing CFA L1 but haven't heard back from any yet. I'm worried that time's passing by and the longer I wait to get any relevant experience, the harder it'll be for me to break into banking. Can I PM you the name of the company? Would like to get your thoughts on the fund/team.
Sure, I think the concerns remain the same, however. I think it would be OK to be honest with them and try to get some sort of understanding that they will invest in you in return for you investing in them. Working for free should not go unrewarded; it is completely fair to ask them to try and transfer connections/opportunities to you in return for your service.
Is this firm by any chance in Stamford?
It could end up being an interesting opportunity, but I'd be pretty weary of taking on this role. Now that they've just kicked off their search, it seems likely that you'll spend most, perhaps nearly all, of your time sourcing. The skillset you develop could very well be less relevant than that what you'd learn staying in audit.
What do most people do after this rotational? I assume many either stay with the company in some audit related capacity or recruit for Big 4? If your goal is ultimately IB or something on the buyside, I think either of those would give you better odds than joining a new/small search fund (though it may still require one or two intermediary steps)
Assuming your rotation ends in July, I'd continue recruiting hard for the next few months. In addition to pure banking positions, perhaps consider applying to valuation and TAS roles as well, where the jump from audit may be smoother.
As vxtu noted, trying to recruit again from that kind of internship isn't going to be easy. Banking recruiting can be pretty fickle and processes can drag on longer than anticipated, not to mention all the time it takes to ramp in an internship and and do anything that you can speak to. It's time that you just don't have if you're there for a couple month internship. I'd focus on recruiting for full-time, paid jobs that can serve as a stepping stone towards IB, even if it's closer to accounting
Thanks for the detailed response. After the rotational I would stay with the company in an audit capacity, and I could try to recruit for Big4 for a TAS/Valuation role. I have been applying to these roles already but have had no luck so far. A lot of these roles are filled through campus recruiting and the experienced roles require a couple years of relevant work experience. I'm going to keep applying to everything under the sun and shoot for a role where I'd get more experience relevant to banking because you make a great point.. by the time the internship ramps up it'll be over and I may not get a good experience I can speak to. It doesn't seem like a good gamble.
I think that is a wise decision, In my view you should always be paid for what you do even if you are not paid much. I would assume they would have you doing tasks which as others have said wouldn't benefit you going forward. As others have said your transition to IB might have to be a multi-step process but will be worth it in the end. Best of Luck!
Exercitationem expedita mollitia dolor facere esse. Esse necessitatibus amet in tempora ipsa. Ad quo sed eum nam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...