Sophomore Year- Investment Banking Vs. Private Equity
I'm in a really fortunate position in that I can choose between interning at a lower middle market private equity firm or a middle market investment bank which has a little more of a name brand (they do $15-20 million range deals)
As a sophomore at a semi-target, which one would you guys recommend choosing? Next year, my goal is to apply and try to get an internship at a BB or elite boutique.
MM IB
Is this an actual MM IB? It sounds way more like boutique at that EV range. I guess it could be the equivalent of Harris Williams's old Cobblestone practice?
Agreed, this sounds a bit too small for MM IB. I think for summer analyst recruiting you'd be fine with either the PE or IB internship. It'll just make it easier to explain in interviews why you want to keep on doing IB if you do the IB internship. As for BB/EB recruiting this will depend on your network, OCR and even to some extent luck.
When did you reach out and when did you secure these offers?
While PE experience before you graduate is fantastic, the simple fact is that being able to write "Investment Banking Summer Analyst" on your resume before heading into junior year recruiting is a massive advantage that will get you far.
You get to talk about your experience during info sessions on campus or in phone conversation / coffee chats you set up during the fall as you begin networking. You automatically avoid most hard technicals in interviews because the banker simply wants to start running through deals you were staffed on to see how much you actually know about the deal process. You'll also (after getting placed into a group) probably start off with a little bit of goodwill where people may assume you to be a bit more competent than other interns.
It'll also help you figure out earlier on whether or not you like this career path, which is the truly invaluable piece you may be overlooking. If banking isn't for you, it's so much better to find that out as a sophomore where you have two years of school and one summer internship left to figure out what your real interest is.
Good luck.
Sophomore Summer -- Boutique IB (Think Rothschild, HL, Guggenheim) vs. ~$5-10bn AUM Infra PE - Both in NY (Originally Posted: 01/24/2018)
Weighing the above offers for my sophomore summer. Hoping to make the jump to a GS, MS, EVR. Advice?
I'm currently a sophomore at what you guys would view as a fringe target. Have the above offers in hand, and I'm looking for some input/suggestions in accordance with my aspirations. Looking ahead, I'd ideally like to make the jump to an upper-tier M&A shop for my junior summer and believe I may be interested in PE at some point down the line. Which of these opportunities will best position me in the short-term?
Take the IB if you wanna do IB again. All good shops, and as a sophomore will easily give you the chance to jump to the places you mentioned. Most sophomores take PE internships thinking it'll help them but they end up not really doing much (because they haven't been trained in IB), so having actual experience is way better.
as a sophomore going to work at a MM PE, why is that not relevant to IB?
Take the summer IBD opp. Very few people are able to get that experience on their resume that early at a well known place like those you listed and having that context will make you a much more attractive candidate for next summer. I'd recommend trying to get in some accelerated processes for top banks / EBs before your summer ends as well.
I think both will open doors for a transition into IB at GS/MS/EVR for junior summer. But with those firms you want to work at just keep in mind that your profile doesn't just scream typical "2 years IB + 2 years to PE." Some firms are fine with it, but I've heard for example GS isn't as friendly about their analysts recruiting for PE. Maybe somebody else can chime in on this.
Sophomore MM PE vs boutique IB internship (Originally Posted: 02/28/2018)
Currently have an offer for a MM PE internship (~$1-5bn AUM) and a regional boutique IB for my sophomore summer internship. Looking to do BB Investment Banking SA next summer. Which would set me up better for recruiting?
Background: startup internship, lower MM PE internship
All inputs are appreciated. Thanks
I think you should take the IB internship but you really can't go wrong with either one.
I've heard people say PE is better because it sets you apart, but on the other hand it may make bankers think you're not really interested in IB. Thats why Im not really sure what to do.
Some of my friends who went through the recruiting process their junior year who did PE their sophomore summers had to convince the interviewers why they wanted to do IB when they did an internship in PE. This shouldn't be too much of a problem though.
In the end, you'll be in great shape for junior recruiting with either one.
I’d probably take the pe internship. That’s pretty sizeable aum, so I’m guessing the guys at the fund will have great connections to banks and can put in a good word/help you set up calls. Unlike the regional bank, they’ll probably be supportive of you looking elsewhere for the following summer, and will help in whatever way they can.
Regional ib is really good too, and obviously the work is highly relevant. But I think the “having to explain why ib” is overrated as a concern - never was an issue for me. You should be able to cruise through bb/eb sa interviews after a pe stint at a reputable fund, especially if you can get a little bit of modeling experience (for initial bids, screening cims or even just practice).
Just to piggyback off this, I have IB on my resume, as well as an M&A advisory firm, and still consistently get asked "Why IB?" I think it is a boilerplate question all prospective interns should expect.
On a separate note, my background was search fund, M&A advisory, and LMM PE shop. When reaching out to investment banks, I was always asked "why not just go into PE?" I hopped on the phone with one particular alumni who told me to stop pursuing banking altogether (not an exaggeration, and one of my schools only BB alumni), and even when I justified why IB, he told me I was making the wrong decision. This is a unique situation, but I think it speaks to the importance of really having an excellent reason as to why you did PE a second time if your goal is BB IB.
I have as much FT experience as a 12 year old, so I'm not trying to push you in either direction, just share my own obstacles regarding networking and interviewing with 2 "PE" related internships.
Private Equity all the way. This is a unique opportunity for you to figure out if PE is the exit op out of banking for you if you are able to break in during junior year. You can always spin some bullshit about how you loved the model elements of PE but wanted to get more experience advising clients... etc.
Alias vel ut eius autem dolor et cupiditate. Et voluptas est harum est odit. Omnis dolor soluta a porro.
Voluptas aut tenetur dolor sit. Molestias quo omnis corporis deleniti aliquid qui dignissimos laboriosam. Perferendis est et eius doloremque minima quos unde. Quos eos fugiat fugit optio suscipit quia. Ut reiciendis nemo aut et illo rem commodi possimus. Qui nihil omnis alias et.
Est voluptatem modi dolorem. Aut laborum minima nostrum aut. Vitae ea dolorem eveniet rerum non tenetur. Impedit neque qui rem velit placeat recusandae. Voluptas aut corporis odit animi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Aspernatur tempore cum consectetur minima. Minima blanditiis libero incidunt sint voluptas est. Ipsum aspernatur est facere inventore autem officiis consequatur.
Dolorem consectetur odio non occaecati accusantium consequatur. Distinctio non rerum et rerum accusantium perspiciatis. Iure quod nemo debitis adipisci expedita sed. Necessitatibus sunt velit eligendi sit in numquam maxime et. Beatae consequatur cupiditate quis voluptas.