What is the most important transferable skill(s) from IB to PE?
Any ex-bankers share some thoughts?
Also appreciate your honest opinion on why moving to the buyside instead of banking?
thanks!
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I'd like to know the answer to this Q.
The buyside vs. IB dilemma has been discussed ad nauseam on here and on mergers & inquisitions. Buyside gives you more control over your time, better hours, and in most cases better pay. The work is also more interesting (investing vs sales).
Most transferable specific skill is probably modeling. The models you construct on the buyside are more detailed than the ones you build in banking, though. Aside from modeling, the "ability" to work long hours and the high level of attention to detail you develop in IB are also valuable.
But many pre-mba buyside gigs are 2-year-and-out programs, and the promotion on the buyside is much more uncertain than IB.
Of course, but I feel that most analysts are smart enough to realize this, and do consider the cost + opportunity cost of an MBA and the loss of upward mobility prior to making the move to the buyside. The fact of the matter is that most analysts just don't want to stay in IB. Sure, you'd probably make more money over the course of your career by staying in IB instead of taking the whole IB --> MM PE --> MBA --> MM PE route, but if you'd be miserable in IB or if you're just more interested in PE, it's probably worth taking the risk. As long as you're sensible with your expenses, you'll end up with a decent amount of money either way.
I would say 1) understanding the M&A process, 2) understanding debt, 3) being able to model and 4) building a strong work ethic through IBD.
what is the most important skill(s) bring in to PE after a few years in IB? (Originally Posted: 09/15/2012)
Any ex-bankers share some thoughts? Also appreciate your honest opinion on why moving to the buyside instead of banking?
thanks!
prd
PE/IBD Analyst Skillset: How much of an overlap? (Originally Posted: 06/16/2016)
Are the PE and IBD analyst skillset identical? Will a good IBD analyst necessarily be a good PE analyst? Conversely, would a bad IBD analyst be a bad PE analyst? Just curious, as I have seen a few not-so-great IBD analysts move onto some good shops...
Curious as well
possible that the not so good analysts were not good because they were putting effort into recruiting for the good jobs you allude to?
Assume you mean PE Associate? Much bigger different between PE Analyst vs. Associate than IBD Analyst vs. Associate...
For the same reason that some people who didn't do super well in school got great IBD gigs - networking, personality, interview skills, prioritization of efforts, luck - not-so-good IBD analysts can get solid buyside jobs. There is a lot of overlap (they don't call it banking 2.0 for nothing) - but, again, it's not rocket science. Just like a liberal arts undergrad can get up to speed for IBD, a subpar banker can make his/her way through a few years of PE.
At least tangentially related to your question:
http://www.wallstreetoasis.com/forums/how-to-make-vp-in-private-equity
What do you mean by "not-so-good"? In my group, none of the six of us leaving for PE were top bucket. We were all middle and one of us was bottom. Some of that is politics, sure, but a lot of it was because we were MIA for two weeks in February when most deals heat up.
"Skill set" ....do you have sound investing principles? Do you understand finance? Can you work excel...as some others mentioned, we are not assembling heat seeking missiles. Even if you are a grinder with no brain function I'm sure you can land a PE gig. Creating value for your partners is a different story...
I think half of the people on this forum are clueless. The other half who are in bullshit "IBD" groups are disillusioned. As for the OP... you are either a) not out of college/in a legitimate role, or b) you are not so bright. Good luck, have fun.
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