Silver Point vs. MF PE Analyst
I saw a few threads discussing the growth of PE analyst programs and the increasing amount of undergrads joining them out of school. Seems like obvious consensus is the PE analyst programs are much better than banking programs. But what if you can join a good HF. I put Silver Point in the title because it's the only one from my school that seems to consistently take undergrads, but any other HF that takes people from school could also apply.
Which is the better long term option? Which would pay more? Which do people take when choosing between the two if that ever happens?
Ivy?
IU Kelley
really? dang IU Kelley must be killing it!
Nah
You arn't going to get a straight up answer to this. The two are so different that for some MF PE would be better and for some HF would be better - it all depends on your individual interests. That said, there are some obvious considerations: PE provides more optionality for other exits and phenomenal bschool placement, Hedge funds have a faster pace and likely allow you to raise through the ranks higher, though at the expense of job security. MF PE is a clear choice over all banking options but HF over top banking is less clear in my opinion based on limited optionality but if you know you want to be in the public markets for your career then it is a no brainer.
silver point if you have balls
at that point all it is is....do you want to do PE or a distressed debt HF...2 EXTREMELY different things and that’s the only thing that should matter. like you can’t go up to HHs for on-cycle recruiting and say you’re interested in both PE and HFs as they’ll write you off, so similar to this, the prestige, pay, reputation, what is “better”...none of that matters because they’re too fundamentally different things. Apples and Oranges.
if people are choosing between the two, they take the actual role they want to do, not for pay, not for long term trajectory or whatever. granted most 22 year olds have zero clue as to what they want and chances are they’ll burn out before the big money anyways (that’s just statistically a truth for all of us).
Shouldn't be a deciding factor but FWIW SPC pays more than the big MFs that recruit out of undergrad. (BX, KKR, WP, SLP) . As mentioned above they are very different - once you've spent a few years at SPC it will be difficult to go to long term oriented equity funds (but not impossible) while from MFs, it will be very difficult to cross over to the distress side, particularly after you've spent 3+ years at a MF. You're young enough that neither door is closed but would require more effort to reopen. If you're interested in doing distress, do SPC, otherwise MF for the optionality.
Lot of what you said is inaccurate: coming from SPC you can absolutely got to a l/s equity fund. People from spc have gone to tiger cubs, while people have gone from megafunds to distressed no problem. Do a quick linkedin sesrch
Agree that optionality isn't a problem from SPC, but what Tiger Cubs? I guess D1 is grand cub. It's certainly not a typical route, but the undergrad hires are usually the best (or among the best) for a given class, so no door is closed.
Of the four guys I know that went to SPC, every single one had at least one PE offer as well. It’s often an exit from PE (Apollo, Silver Lake, Centerbridge). I think a couple of their analyst also left for top equity shops, so not sure if it’s right that it limits options.
Go with PE
I think a PE program will give you a solid learning base in terms of understanding financial statements, how companies operate, what to look for before buying into companies. Bankers will be pitching you all of these transactions, and you'll learn through your colleagues how to smell the bullshit that comes out of a pitch. This learning will be invaluable to your career in finance, and will make you well-rounded and give you transferable skill that you can take anywhere.
I'm not sure what kind of training you'll get at a hedge fund. I think you'll be more well-rounded if you work in PE in the beginning of your career.
Maybe HF training = real investing experience vs. banking 2.0 for PE?
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