Pretty much exactly what the question says ...
In the final stages of the MBA internship interview process and debating between PGIM Acquisitions in NY and Portfolio Management at either Ares or Apollo. No offers yet, but trying to make a plan as the turnaround is tight.
Would love to hear HOLISTIC thoughts, as obviously Apollo / Ares are more prestigious, but Acquisitions is better / personally preferred over PM.
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What book would you be running at Ares/Apollo?
I wouldn’t be so focused on Apollo / Ares is more prestigious. There is a saying: “Prudential trains the street” and if you choose the role at PGIM, you can go wherever you want after.
If you think you want to do acquisitions, take the PGIM role. It’s going to be an awesome spot to see tons and tons of deal flow and learn how to underwrite in an institutional fashion. If you think you want to do portfolio management, choose the Ares / Apollo role. One thing I’ll note, if you’re not sure, it’s going to be easier to go from acquisitions to portfolio management than the other way around.
Only on WSO would I find a statement about Ares/Apollo being more "prestigious" than PGIM......
So, I think all are fine places for an MBA internship. But I thinking getting to intern with an acquisition team at one of the most recognized leaders in real estate would be an easy call for me personally. (note, I'm making the assumption you are most interested in a real estate placement upon graduation, if not the case, then this isn't as clear a call).
I’ll also add, while the Ares and Apollo’s are seen as these “magnificent places” to work. They are generally really tough places to work and really hard to make a long term career. They grind you to a pulp (long hours) when you are young. And if you can last, it’s really really hard to move up at these firms because as you move up, the money gets really good really fast, which means people don’t leave. Which means less seats to move up.
The Life CO’s have a different issue, which is: it’s hard to move up because people don’t leave - but they don’t leave because although pay isn’t as high, they actually have a life. Which many of these people have realized that so many of these acquisitions roles just crush you. At my old Life Co, many people know they could leave for 20% higher pay, but it also meant their hours and stress would increase significantly more. And since they had one of the ‘cushiest’ seats in the industry, they had no desire to leave. While it’s tough to make a career at a Life Co because it’s hard to move up, it’s significantly easier to run the marathon even if it takes a few more years and a few less dollars because your life will generally be much more sustainable. Now; that’s just my two cents. There are plenty of people that can work 60-80 hour weeks for 10 plus years without an issue. Personally, I can’t. And I don’t think people realize how hard those weeks are day in and day out.
PGIM. Which MBA program are you in?
The non-PM option.
I would pick PGIM. Beyond what others have said, growing in PM/strategy roles tend to be more difficult as many companies like their senior leaders to have deal experience (hard to be head of credit when you don't understand structuring of a deal).
So you may come in as an associate, move up to VP, but and when that senior PM finally leaves/retires not be in a position to take over the role because you don't have the deal experience.
Since you mentioned Apollo, look up Daniel Ho. He was an originator, global head of AM at MS (this was more of a strategy position vs in the weeds AM) and is now Head of Debt AM at Apollo (also a strategy position). You will see similar paths for a lot of the top people in the industry (acquisitions/originations at some shop -> strategy role). Very few start in PM and spend their whole careers there.
What about AM to PM? Is that common?
PGIM if you want to stay in acquisitions for early part of your career and I don’t think it’s particularly close.
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