I work in FIG at an EB and although I feel that I am gathering valuable experience, most of my deals would be described as small ($50M - $500M) with only 1-2 surpassing $1B.
Would this be looked upon poorly when recruiting for PE? Part of it is a function of the industry (i.e. there isn't a ton of money to put to work in FIG), but would like to hear others' opine on this.
Thanks
size of deal matters in a sense that it provides a slightly better headline on your resume, but when it comes down to it, actual deal experience (ie. what you contributed and learned from the transaction) is a lot more important than just the headline. Keep in mind that a lot of analysts (especially in coverage groups) will not have any deal experience when recruiting for PE so I would not worry about this.
Much better to discuss any deal, than just say you worked on a "big deal." Honestly, a lot of the times a big deal is done, much of it is already done on the corporate side anyway. Much better to have really been in the weeds on a $200m deal with tons of diligence, investment considerations, tactics and crazy shit than to have a $10B deal on your resume and all you've done is a DCF, spread some comps and some firepower analysis.
Wait...you're not talking about FIG financing deals, are you? Those deals likely will not be relevant for PE recruiting.
"my deal sizes may be small but trust me, its big where it really matters" - bam you're hired!
No - I'm talking about FIG M&A deals
Doesn't really matter. Back when I was doing PE recruiting I had a $10Bn deal and a $200MM deal on my resume. I talked about the small deal 10x as much as the big deal
IB Deal Size and PE Recruitment (Originally Posted: 12/09/2011)
i am a first year BB analyst, and most of the large deals and pitches (1B+) are being staffed to the 2nd and 3rd year analysts in my groups, leaving the first years with the deals on the smaller end. how much of an impact will this have on my prospects when it comes to PE recruiting? I want to hopefully have a good PE job lined up by Summer/Fall 2012 for summer 2013 but I am not sure I will have experience with large deals while the 2nd/3rd years are still around. Some people have told me that I should not worry about this and instead focus on getting good modeling experience, which I thankfully get from my current group.
Any thoughts on this?
Deal size is not relevant.
unless you did a $50bn deal you will not get a pe interview and die in poverty.
hahaha, please
USD 45.6 B
To OP, sounds like your focusing too much on quantity over quality. What are you contributing? Are you generating revenue and not just another cost-centre? Are you able to leave your current analyst position and execute a deal on your own?
I don't get this notion that IBD analysts can differentiate themselves by generating revenue. I see this mentioned from time to time and the only way it seems possible is if the analyst is extremely well-connected (i.e. comes from money).
OP, quality of experience is what matters. PE firms care more about the $50mm M&A deal on your resume than they do the Facebook IPO you worked on. I know a kid at a mid-tier bulge bracket who got into a megafund with a convert deal as the only completed transaction on his resume. Granted, he did go to an Ivy, is smart, likely interviewed well and had the group head pulling for him. But once he got his foot in the door, he did his thing and impressed.
That's a crock. How does "extremely well connected" equal "comes from money"? Sounds like an excuse for not getting off your ass.
I meant "well connected enough to bring in a deal." Most analysts are fresh out of college, don't know shit and are in no position to offer advice to a seasoned CEO. Further, some analysts are in coverage groups for industries that require extensive study to fully understand, and it is highly likely that the analyst did not major in that area of study in college. Picture a 22-year old who majored in econ trying to talk shop with an MD and PhD who's CEO of a diagnostics company.
If I'm missing something that is applicable to the average analyst, please enlighten me. Otherwise, you do not have this non-target state school finance major convinced.
Well, I came from a non-target state school, was a physics-engineering major and had mediocre grades. However, after leaving the Corps I landed in a family office in HKG. Spent three years evaluating technologies for investment and was eventually asked by the Chairman to start sitting on portco boards. Since then, I completed my MBA at a top ten school (globally) and a few minor deals (USD 2 to 30 M range) on my own and was asked to join a MM PE firm and set up their Asia office.
The point is you don't have to be a seasoned veteran to pull off a deal, just determined, focused and lucky every once in a while. Universities are packed with good ideas that languish primarily because the students generally do not take risks.
I agree most college grads don't know anything and wouldn't be able to contribute to the firm (hence my original post). However, I have on rare occasion met a few that are contributors. Average, definitely not..
No first years will have any real deal-related experience when it's time for PE interviews
If they do, then I'd immediately wonder what the fuck is wrong with their group/bank that has them staffing a first-year with absolutely no experience (and is, quite frankly, deadweight for the first 6 months or so of their stint) to play any type of important role on a revenue-making transaction
This is for BB's, btw. Boutiques... maybe
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