Why does GS have a discount when MFs don't?

The GS discount exists because of the firm's brand name, but from what I understand, being an analyst at a widely known mega fund like BX would carry far more weight. Despite this, analysts at mega funds have similar all-in compensations as analysts at higher-paying BBs if not EBs. How is GS able to maintain the discount as more mega funds opt to create analyst programs, or conversely, why don't mega funds discount using a similar argument as GS? I'm guessing the skillset of PE analysts might be a factor but was curious if other people had any thoughts. 

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Jun 10, 2021 - 4:21am

My guess is because Goldman takes silly university students who value prestige a lot more than those who have been in the industry for a few years. I would also guess that prestige matters more in your early career years in opening doors, the more specialised you become the less prestige matters.

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  • Associate 1 in IB-M&A
Jun 10, 2021 - 5:38pm

It's an outdated mindset. I honestly think the GS prestige is nowhere near what it used to be. All the info you ever need is readily available on the web and kids from undergrads and MBAs aren't choosing banks solely out of "prestige" or name their parents have heard of anymore. GS in fact had a lower acceptance yield compared to competitors (Evercore, PJT and even Morgan Stanley) from my uni

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