Currently have an offer from a top PE analyst program (BX/Warburg/SLP) and a top EB (PJT/EVR/CVP). Trying to get some insight from those who have been in this position in the past / know people who have been to see how others have thought about the trade-off of skipping banking and going directly to the buyside as an analyst.
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I spent some time at a buy-side firm and was in a similar position to you. Literally every single new associate at my firm said that they would've skipped banking if they could have and that they only did banking to get to the firm I was working at.
On the flip side, analysts at my firm were held to a lot of scrutiny and expected to bridge any gaps from not having banking training. If you made too many stupid mistakes during your summer analyst stint, you wouldn't get a return. Maybe depends on how risk averse you are.
Im interning in upper MM PE and everyone says the same go with PE if you’re sure it’s what you want to do
Most definitely PE analyst program brother. Congratulations on the most coveted offers in the industry!
Thanks for the input - just wanted to clarify that these offers are for FT (currently at the EB that I'll most likely be getting a return from).
I guess my biggest hesitations from going straight into PE are (in no particular order) - 1) whether this is the fund I'd like to be at long-term or if I should stick around for associate recruiting where I can get to know more funds and make a more informed decision, 2) going into PE without a refined technical skill set from banking, and 3) missing out on developing a network with other analysts in my class in banking who will go on to different PE funds / industries.
Any thoughts?
Honest advice? You're overthinking. You know this was the better option, until you actually got the offer. Now you're just complicating things. There are trade-offs to everything, but net net by far the PE Analyst program is the better choice.
As more PE firms start opening up to analyst programs out of undergrad, the more coveted and standard path this would be.
1) Just because you're joining as an analyst at WP/SLP/BX, that does not preclude you from buyside recruiting. (Ex. Analysts at Upper MM (FFL) -> Megafund (KKR), Vista -> KKR) 2) The only non-PE skillset I can think of that you gain in banking is a higher familiarity with dealing with PubCos, and a more academic understanding of valuation. Both are easily self-taught with some effort, and possible to exposure to at MFs depending on the deals you are staffed. Otherwise, you get commercial diligence and more tangible industry exposure at the MF 2-3 years earlier than your would-be EB peers. 3) This is a valid point, but it also comes down to your own network of peers upon graduation. PE Firm analysts mesh with Bankers all the time, and it comes down to social groups as well. It might also be valuable as a PE Analyst to know bankers to get intel obviously legal ones), resources, and just having junior connections that are more useful because you are at different firms.
Thanks - this is actually very helpful. Agree on the overthinking and seems like #3 is the only valid concern.
To chime in on point 3, these PE firms you have offers from are very very large organizations. You will have a cohort of analysts peers, just as you would at a bank (also even at banks, you really only hang with analysts in your group or a select subset of analyst friends). Better yet, you also have associate/VP peers who are a few years ahead of your career trajectory of choice (one aspect I was disappointed with in banking was how thoughtless, narrow-minded post MBA associates / VPs are. At that stage they are all about risk aversion and high pay to support family). Also keep in mind you will be interacting with bankers, lawyers, consultants and executives, so you will also develop that network. Better yet, they will probs respect you more / think of you more as a client vs another banking kiddo uploading files onto datarooms. To summarize, I feel your concerns around the network, but the firms you listed are large and there are positive elements from a network perspective that you wouldn’t get as a banking analyst
I'll play devil's advocate for a moment. While all good points are made above, each of the PE shops you mention are attainable from the IB groups you mention. The opportunity set out of any of those three IB groups will only grow in your first year. Unless you've landed your dream PE job, why exercise the option if it matures in 1.5 years? I would err on the side of maximizing your alternatives in the near-term.
If you hated your internship, or you are joining a group that is not recruiting-friendly on the other hand, then you may have found a great off-ramp.
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