BB vs Midcap/small PE

Assume that one has the chance to either start at a BB (possibly MS/Goldman) or at a Midcap/small PE fund (Ardian, Aurelius, one equity partners) after their UNDERGRAD studies, which would be best in regards to raise their chances for Bschool and to transition from europe to the us?

 

Possible. Again, the chances to get admitted at a M7 school will highly depend on which of the listed funds you are going to work for and obviously what you'll achieve while you are there. For example, Aurelius might be well known in the DACH region, but less so in the US. Keep in mind that landing a PE gig in the US is already hard for US citizens. Throw your unfamiliarity with local customs (understanding the end customers) and your lack of network, I think it will be quite hard for you to compete.

In the end, the easiest options would be to move internally at a BB.

Feel free to drop me a PM, especially if you want my take on the PE fund for which you could start working for.

 

You've basically just made the statement "My ultimate goal is pizza", then asked us whether you should have steak or pizza for dinner. Offer #2 is private equity, it is the buy side. Are you asking which you should do to maximize your chances of working at Blackstone one day? Or to maximize your chances of working at an awesome hedge fund? Or a cool VC firm?

Or do you really just want everyone to tell you that you have great options and you can choose either?

- Capt K - "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham
 

Whichever you think is appropriate I suppose...

No, I just don't know much about the quality of learning experience at a PE firm that small. Do you think I would be better served to work at a large, well known bank for a few years and then jump to the buyside or would it be better to work at a small PE firm and try to lateral to a larger firm? Would work experience at a small firm still be good for b-school? Any general thoughts like that...

 
gwhope12:
No, I just don't know much about the quality of learning experience at a PE firm that small. Do you think I would be better served to work at a large, well known bank for a few years and then jump to the buyside or would it be better to work at a small PE firm and try to lateral to a larger firm? Would work experience at a small firm still be good for b-school? Any general thoughts like that...
Depends on whether you want to do the trading path (HF) or private equity path (IB/PE/VC). If you decide you want to join a hedge fund, the LevFin offer is almost certainly the way to go. If you want to go the PE/VC route, it's a little bit of a grayer area, and is highly dependent on whether you want to be at a megafund, and what your role would be at the MM PE firm. If it's purely a sourcing role, then I'd suggest you gut it out in banking for 2 years at the BB firm, then jump to a reputable PE firm. However, if you think you're going to get actual deal experience right away, I'd look hard at the MM PE fund. You'll be infinitely happier with your life, and you'll be able to move to another PE fund if you like after a few years. You probably won't be able to jump to KKR, but you'll have a lot of options open to you. The only door you really close by going to the MM PE fund is megafund PE - you can decide if that's even a place you want to be anyway.

The other nice thing about MM PE funds is that they often have opportunities for advancement without an MBA - I know several guys who have gotten promoted directly to partner-track at smaller PE firms after several years as an associate. You really just need to decide what kind of career path you want - do you want to be Henry Kravis, or are you happy actually seeing your family, pulling down several million a year, and relaxing a bit?

- Capt K - "Prestige is like a powerful magnet that warps even your beliefs about what you enjoy. If you want to make ambitious people waste their time on errands, bait the hook with prestige." - Paul Graham
 
CAinPE:
Hi all, I know this question seems like a no-brainer, but read on, please.

I'm a fresher with zero prior modeling or finance experience. I've recently received an offer from a boutique PE firm (IB/PE, the money being offered here is incredibly low.

On the other hand, I'm on the brink of receiving an offer from a BB in a middle office role (financial analysis of revenue & AUM, projections, etc). The money here is very good and where I'm from, just having this name on your resume, even in a mid-office role, is incredibly prestigious and can open a lot of doors.

So now I'm confused as to what I should go for. Would appreciate any suggestions regarding this. Thanks!

Hi. First of, how did you come up finance dep being MO?

Both FT? Confusing. If you want to work in PE, you would first have to break into FO from this BO role.

What's the salary difference?

 

I'm a Chartered Accountant. Its a pretty prestigious qualification and the BB hires CA's in bulk for this role - even freshers.

I landed the PE role via some creative networking - I'll post that story if I accept the PE job. Ultimately the interviewer really liked the passion that I showed for this industry. Plus the fact that I nailed the modeling test helped. I am the only fresher given an offer.

Salary difference will not seem much in USD, but it's enough to matter in INR. One other, albeit small, point is the work culture. The PE is a tiny office with less than 10 people managing the entire AUM. Working in that BB could be an experience to remember.

Move along, nothing to see here.
 
Eurodealer:

Both FT? Confusing. If you want to work in PE, you would first have to break into FO from this BO role.

I promised earlier that if I take the PE job, I'll post my story on WSO. Here it is... I posted it a few days ago:

//www.wallstreetoasis.com/forums/pe-cracked-networked-my-way-in-via-faceb…

Thanks to everyone who helped cement my decision. I'm starting work soon and don't regret it one bit :)

Move along, nothing to see here.
 

Take the PE role and get applicable experience. It is a no brainer. Being able to talk to interviewers about deals you actually worked on is a good thing.

“...all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” - Schopenhauer
 
seabird:
Take the PE role and get applicable experience. It is a no brainer. Being able to talk to interviewers about deals you actually worked on is a good thing.

I'm gravitating towards the PE job, yes. I suppose not earning in the top bracket for a year or two might not be so bad. Plus, with zero prior modeling experience, there's no guarantee that I will get another chance in the industry if I skip this one.

Move along, nothing to see here.
 

Thanks a tonne, people! Feels good to have received responses from veterans like SirTradesaLot. Thanks a everyone!

I have accepted the PE job offer. Joining mid Jan. I'll be posting the story of how I networked my way into this job soon. Right now quite drunk from the new year's eve/first job of my life party. Happy new year!

Move along, nothing to see here.
 
CAinPE:
Thanks a tonne, people! Feels good to have received responses from veterans like SirTradesaLot. Thanks a everyone!

I have accepted the PE job offer. Joining mid Jan. I'll be posting the story of how I networked my way into this job soon. Right now quite drunk from the new year's eve/first job of my life party. Happy new year!

Congrats and best of luck!

 

The profile of principals of the investment job seems to be legitimate.

If you want to do PE down the line - and you are sure that you are not just going to be doing meaningless / reporting / investment administrative work; then you should consider the latter job.

BB experience will certainly help and is probably the more established route to take. However, job market might not be there 2 years down the line. IB itself might not be too stable.

If the shop is legitimate and you feel that it offers a good work related experience then you should seriously consider it.

 

JWS,

I was in a very similar position after graduation in 05'. I made it to final rounds at two BB and only received 1 offer. I ended up taking a position at a fledgling PE shop that was a newly developed arm of a massive real estate company. In the past two years we have closed 2 multi-billion dollar transactions and several other smaller portfolio companies. The only downside has been the lack of formal training (as you mentioned, I have had to essentially learn modeling skills/valuation techniques on my own by reviewing other analysts work) but the upside has been incredible. I have been given far more responsibility than any of my friends on the sell-side and my experience has been invaluable. I have had the opportunity to spend significant time on the ground in Europe and Canada analyzing potential acquisitions. My group is smaller than yours (about 12 people), which means that I interact with our CEO, MPs, and MDs on a daily basis and the environment is very collegial and almost like a family. This environment has benefited my personal career development greatly as I have been forced to learn on a steep curve and have been placed in more senior roles. Feel free to PM me.

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