Top BSchool or Megafund PE?
Saw there was a similar thread on this a couple years ago and would like fresh thoughts.
I'm currently working at a large fund in public equities and have the chance to interview at a megafund PE shop for a junior role. I'm not sold on entirely on PE, mostly curious b/c it's a big name in my industry. On the other hand, I'm also quite interested in attending a top 3 business school.
There are some nuances to my situation:
- It takes a long time to get promoted at my firm, so I know I'll probably leave anyways down the road.
- I'm 28, nearing 30 and I hear it's very tough to break-into b-school when you're "too old", aka. 30+
- There's high representation and recruiting w/ the top b-schools at current firm. Would maybe give up the recommendations to go to top b-school if I left.
- See the value in b-school as mostly intangible - making valuable lifelong friends and connections, not entirely about economic ROI. I understand I don't need it necessarily, but the appeal of HBS/GSB is ungodly strong.
- Goal is down the road, either start my own business or do business strategy/dev. role in int'l markets. I don't love finance, I'm just decent at it.
While it's just an interview, I'm not sure how to think about the situation - does it really come down to my end goal when choosing, doing PE or something else? I see value in picking up private market/"operational" experience in the mean-time at a great PE firm, or at least be closer to a business than in public markets where I'm looking at 20+ companies. Also will make complete bank over my current role.
Thanks for any advice.
Megafund PE > Top MBA.
I see PE people who aim top MBA simply for the chance to get into a Megafund PE elsewhere. I know a guy who worked at a Bridgepoint office (non-UK office, only had 1 portfolio company), left for Stanford MBA simply to move to Blackstone post-MBA.
Btw, this is simply wrong for most programs =>"- I'm 28, nearing 30 and I hear it's very tough to break-into b-school when you're "too old", aka. 30+"
Also, no need to worry about recommendations if you leave the current firm & choose to do an MBA while working at the megafund, your experience will make up for it.
If it's a megafund PE associate role (pre MBA), then it's likely an offer for only 2-3 years anyway. Not a big difference in terms of your viability as a b school candidate, plus you'll have a presumably great name on your resume.
Yeah... not sure PE is the end all be all goal, but the opportunity is appealing. I can see it's a no brainer if I only wanted to do PE.
Hmm... you maybe right - the work experience may make up for my older age. I had read that it was incredibly tough at 30 to make into the top b-schools. Not that there aren't people who get in around that age, but the number really seems to fall off around age 30 when you look at the entering class distributions by age (HBS as an example). That may be due to people around that age not wanting to apply b/c of opportunity cost... or they just don't get accepted over younger applicants.
H/S skew young, the rest of the m7 don't seem to care as much. I don't see the downside in going for the interview though.
I'm pretty much gunning for H/S and I'm probably really myopic from that standpoint. I know they are reaches for virtually anyone too.
It is probably best for me to talk with the fund and see where it goes.
Why only H/S? Neither of them are necessary for your end goals that you cite in your OP.
It'll be much easier to get to a top MBA program after the mega fund than vice versa.
Accept Megafund Offer or MBA (Originally Posted: 08/25/2014)
Trying to decide on one of two options: stay at my current MM PE firm where they require, but will pay for, an MBA or accept a post MBA associate offer I received from a megafund.
First, a little background. I went to a top 20 undergrad (Berkley), but not an elite school (Harvard/Yale/Princeton). Did I-banking for 2 years at a no name boutique in a regional city on the west coast. After banking, accepted my current position as an associate at a MM PE shop (about $2b AUM). Some brief highlights on my current firm - work life balance is poor, latest fund is doing really well, I have earned good reputation and my colleagues really like me - will be promoted this yr, pay is decent, could see myself making it to a senior position if I stayed due to firm growth and opportunity, and location is great. However, they require MBA to advance. And although they are willing to pay for it in my case (exact details tbd), I would prefer not to go as I would rather earn money and get more deal experience rather than take a two year break.
Since I was unsure if I wanted to do the MBA route, I tested the market and got an offer at a large fund (think Oaktree/Ares/TPG) for a post MBA associate position in their PE group. Pay and reputation is obviously much better (2x my current comp), but in NYC (more expensive and would prefer not to live there, although I can manage). And have to build back my credibility at a new firm, again (which is tough).
For argument sake, let's assume I would get into H/S/W for MBA.
What you say WSO? Go get my MBA and do the career track at the MM PE shop or go up market without it? I am leaning towards taking the new offer, but just want to make sure I am not being short sighted and will regret not getting my MBA 20 years from now...
This might be a terrible answer, but what do you want to do in the end? Make a lot of money? Have your own fund? Be a part of a team? Where do you want to live? Think about all of this. How does each option you've presented help you achieve that? Also do you want a break? Because if your firm pays for the MBA that's what it can be. A break from long hours, a chance to meet new people, talk about new ideas, party, look at new opportunities (yes you'd have to pay the firm back or whatever).
I think you are looking at this in a one dimensional fashion. There will probably be more to an MBA than what you've laid out...
How much of a pay raise is the impending promotion? Do you have to spend your summers at your current firm? Are they going to promote you to an even higher position post MBA? I'd say you have a pretty good thing going and depending on your answers to the above questions I'd lean toward the MBA.
If you go somewhere with grade nondisclosure and have a guaranteed job waiting for you, you could have the time of your life in b-school.
Hit the bid.
Is this for real? Or are you trolling to determine the value of MBA? Seems like a no brainer...
So what did you end up doing and what was your thought process here?
You went to Berkeley but cannot even spell it?
Take the Megafund offer.
what is your all in comp now?
MF without a doubt.
@"IvyLeagueVet" Was for real.
@"fearandloathinginca" Ended up taking the megafund offer. Came down to personal financial obligations, and thought there would not really ever be a chance for me to move "up market" again. Overall, glad I made the change.
@"g0ttag0" should make +/- $375k for 2015
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