Reneging Full-Time BB for MM PE Analyst

Good afternoon,

Long-time poster using a new account to preserve anonymity. I've been put into a position were I have already accepted an offer with a NY BB, but just recently received an offer with MM PE firm as an analyst in a different city (think SF, Chicago). There is potential to move up within the PE firm, and I'm not of the mega-fund or bust mentality. The quality of life is much better and pay is comparable (perhaps slightly higher all-in for IB). Regardless of this decision, I'd like to be on the buyside in the more developed parts of my career. So fellow monkeys, how would you evaluate this decisions / would you consider reneging?

Regards,

 

Check your contract to see what the terms are for severing the relationship. My BB FT contract states that employment is "at will" and that either party can break off the relationship for any or no reason. I'd personally honor the contract, but given your desires to work in PE, I don't think reneging would come with too many consequences.

 

My contract is at will. I appreciate your comments, and it's a really difficult situation given that it's an opportunity to be possibly in the same place after two years with a lot less pain. The BB is branding for a lifetime, and I consider myself a person who honors his promises, but this situation is making me rather conflicted.

 

I've always been of the mind that the more experiences you have in your career the better, particular during the early stages. What does the runway look like at the PE firm, will you have to look again for another job in 2-3 years anyway? What type of a role is it in terms of how much sourcing will you have to do? Is it your top PE choice or are you just taking it to take a PE role?

 

I'm curious as to why you want to skip the BB banking gig all together?

If its a solid reputable BB firm, you should carefully consider the decision. Yes, you do want to do PE longer-term, but that's not to say the best way is to do it as fast as possible.

Its a very valuable reason for a few reasons: (1) training; (2) network; (3) building friendships; (4) personal and professional branding; (5) professional development.

If you graduated from University of Arkansas and are going to work in ECM at Citi, then my above points are notwithstanding. I'm assuming your BB gig is at a legit firm and in a solid industry group or PE-feeder product group (M&A, LevFin and sponsors, really). Your PE recruiting prospects are clearly a key consideration, but I'm assuming that if you can get a PE gig now, you can atleast get the same if not more/better gigs after having spent a year in banking.

 
Best Response

Throughout college (non-target) I interned at several banks (2 BB, 1 MM) and hated my BB internship (lots of meaningless work that I got bored of doing but I get it, it's a right of passage). I got an offer but thought I'd shop it around and try my hand at a few boutique and MM PE places and ended up getting a few offers (NYC, Boston, Cleveland, and Arizona). I wanted to be in NYC so I took the MM PE offer. For my two years there, my life was pretty good- doing much better work than my friends at other banks (evaluating companies, going to board meetings in Vegas, general operations related stuff for companies, etc.). I really enjoyed my time and was getting a much better experience than my peers hands down (rarely cancelled plans, had a strong to very strong social life, days off as needed, etc.).

However, then I felt like I outgrew the firm and wanted to move up to a slightly better fund where I'd get more responsibility (aka 2 man deal teams in a MM to upper MM fund; I did not want to be at a TPG or Apollo or any other big place since I really enjoyed the Asset Management aspect of my companies and didn't want to get layered out by a VP or someone else). The other analyst who started with me out of undergrad was looking at hedge funds. We had begun talking to head hunters and it seemed as though the opportunities they were giving us were hand-me-down opps that other BB guys were rejecting (1st round interviews for solid firms were few and far between compared to my BB counterparts). One headhunter even suggested that I take a step back, work at a BB for a year, and then try again. It didn't matter that we had much more relevant experience and would hit the ground knowing exactly what to do; in fact some shops didn't even care and weren't even giving us 1st round interviews. Though, it ultimately ended up working out for both of us, it was definitely a much more arduous process to get there.

MH is 100% right on the "(2) network; (3) building friendships; (4) personal and professional branding" as well, take that into heavy consideration.

Bottom line: it was still a hell of a lot tougher to land what I wanted after spending 2 years in MM PE; it won't 100% preclude you from getting the opportunities that you might eventually want but be cognizant of the fact that you'll have to put forth much more effort. The other thing that I will never have for the rest of my life is that "stamp of validation" that you spent your first few years at a reputable bank, which could potentially make it tougher when looking at other jobs as well.

Long response but I wish I had known this years ago when I had your decision to make.

 

Modus and Marcus, thank you for the stellar advice. Although placement was phenomenal at my group there are still 4-5 guys who aren't getting looks from solid PE shops, so for me it appeared attractive to me to explore this option rather than risk going through 2-3 years at a BB and ending up in a comparable position. I think my decision is rather clear (especially in light of those responses), my judgment is just slightly obfuscated at the thought of grinding hard for those two years haha. Appreciate it gents, thanks again.

 

Sounds like you've got your mind made up. One last bit of advice I would offer is that if you're not grinding atleast as hard as you'd be grinding if you had been in banking, either (a) you are underperforming or (b) you chose the wrong path.

Also keep in mind, as Modus stated, all PE shops are not created equal. I have friends who went to places where 3-4 years in, they're still grinding models and working under a VP. I have friends who a year in are on a team consisting of themselves and the deal partner, and are essentially running shit on the investment.

FYI, check out this thread as well, some of these views are applicable to your situation.

http://www.wallstreetoasis.com/forums/kkr-pe-straight-out-of-undergrad-…

 

@Ibankerben

It's not doubts about the grind, it's about going through the grind and winding up in an equivalent position (with obvious potential upside in a better PE offer or downside in worse or none). Since I don't necessarily need KKR or the likes, this seems like a palatable offer.

@Marcus_Halberstram

In addition to WSO I reached out to some members of my investment group, and they shared similar sentiments with you and Modus. I'm fairly confident that the BB is the better long-term option. Thank you for the link, I'll be sure to check it out.

 

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