small pe in ct

presently a summer analyst at an mm in nyc. considering an offer from a small pe firm (~10 people). someone please break this down for me. what are the pros and cons of doing this? should i go for it or try to stay in banking?

 

It's not the number of people, but rather AUM that counts, what is the funds track record like or if it's new what did the partners do previously? Would they take you on as an Analyst or pre-MBA associate? Do you feel that this is a better offer than you could likely land out of the MM? If it was >500 MM, you like the people and you want to be in PE and they are willing to take you on I'd go for it.

 
Best Response

As a guy that started off at a small, boutique-ish PE shop I'm on the fence about it. I've enjoyed my time and I've learned a lot that IB analysts wouldn't know, but my modeling skills certainly lack the quality and speed that I would have otherwise had, assuming I completed a 2 year stint in IB.

Now, that doesn't mean as much at the senior levels but it's still important as I progress in my career and up until I get to that senior level...it's going to be a huge employment consideration.

I enjoy smaller shops so I've had fun here and have a better lifestyle than most because I'm the only junior guy and all the senior guys are married and have kids, so they only put in the hours they need to and I'm not required to have any face time. The drawback here is that I'm the only junior guy (yeah, I know I already said that, lol) so you don't have other analysts to hang out with or BS with after hours...it's just me, by myself, listening to music. Things may be different if you are at a little bit larger shop so keep that in mind.

When it comes to analysts, also consider how valuable they can be as a resource. I spend a lot of time researching problems and finding solutions on my own...which builds great character, supposedly...but often I would much rather lean over a cubicle wall and ask someone that already learned that on his last model or his last pitch, etc. Of course I can go to the senior guys and get answers, but you try hard to limit their exposure to your incompetency...so I often ask the guy that isn't involved in the project I'm working on...and turn around can be hard. If I really need something I can probably get them on the phone, but if you are working late nights cranking out a model and run into an issue, chances are you aren't going to get a response until you see them at the office in the morning. Again, that could be different with your firm.

I also think that you should be really objective when evaluating your choice. Admittedly it seems cool to get into PE right out of undergrad...was for me, although I didn't have any other offers at the time...but the skills you build in IB are extremely valuable. I actually interviewed at IBs about a year after starting my PE gig (things were slow and we weren't doing any deals) and no one wanted to hire me because they questioned my ability to work those long hours and my commitment to staying, etc. My goal was to get great experience and learn as much as I could, which is why I was trying to jump ship...but they didn't want to hear that because they are looking at me cross-eyed and wondering why I'm going backwards. That's just something else to consider.

If you have more specific questions, just post them here and I will try to answer what I can for your benefit and the benefit of others.

Regards

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
 

I'm in a very similar boat. 18 people in total, 1 junior guy(obviously it's me). Currently there's only 1 person(40 year old female VP) in the office besides me. Others are in the HQ in US&HK.

Busy as s**t when the projects come. Had to do all the onsite research and write all the reports. But most of the time I just sit in the office alone. I even brought all my textbooks from the University, and seriously finished reading all of them.

 

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"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan

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