Q&A - Bulge Bracket IBD SA to MM PE Analyst

GS/MS/JPM Investment Banking SA to MM PE Buyout Analyst (~$2Bn Fund)
Been a lurker on WSO for a while now so thought I'd give back to the community and answer any questions about starting in PE as an analyst, hours, nature of work etc

 

Came down to a couple of things - 1) wanted to work on a smaller team and have greater decision making power on investments, 2) long-term goals aligned with the fund thesis and growth trajectory of fund size / IRR was attractive, 3) initial comp was at par / slightly higher than typical IB analyst salary with faster promotion track and early carry / equity co-invest.

Felt like the analyst role in IB is increasingly about content generation as opposed to idea generation which felt stifling to me over a 2 month internship so couldn't imagine doing it for 2 years.

 
Most Helpful

Great question. I would say it was a mix of keeping an eye out for opportunities over the summer and being fortunate to know a few people at the firm already. In general, the number of PE shops that are opening their doors to analysts without requiring the 2 years of banking experience is on the rise.

Personally, I specifically looked at MM Funds with an analyst program that was heavier on diligence and execution as opposed to being built around sourcing.

And yes, happy to chat. Feel free to shoot me a note.

 

Thanks for doing this! Where does your firm fall on the continuum of operational focus and is that something you enjoy/would look for in growth equity down the road? Did you have a direct conversation about carry/co-invest before you joined or was that assumed to be part of comp starting at this particular firm?

 

https://www.wallstreetoasis.com/forums/pe-firms-with-analyst-programs this is a good thread for your question - wouldn't add anything to this list.

In terms of how to get there, you pretty much have to be at a target school for these firms or be really good at networking your way in. A lot of these firms (including mine) typically target kids from top banking SA programs as a funnel to bring them in.

 

On average, I get in around 8:30am and leave around 9:30-10 with some weekend work. Fridays are usually more relaxed and you can leave earlier (there's usually a happy hour).

As in IB, when there's a live deal on the table or something needs to go out, its all hands on deck and what I like is that the associates/seniors on the team grind as well.

 

Hey! Thank you so much for this. I'm doing a UMM for my junior summer internship. Our summer class is only 2 undergrad interns and 4 mba interns.

How would you recommend preparing for the job? (Last summer I did ER for a major fund). Thank you so much!

 
  1. Get on the phone with a few people at the group and learn about the culture of the office/firm
  2. Take classes that actually teach you something and make you more interesting (managerial accounting doesn't make you a good conversationalist)
  3. Revise your excel and powerpoint shortcuts so that you're not starting off on Ground Zero
  4. Get 4-5 sets of good work clothes so that you're not scrambling week 1
  5. Read up on their portfolio / strategy so that internal conversations in the first few weeks don't sound like Latin to you
 
  1. Strong internships during and before junior summer; networking with professionals at the firm; club involvement and leadership in college; high GPA from target school

  2. As I mentioned in an earlier answer, there are more opportunities out there if you look for them. While the bigger MFs exclusively recruit from HPY / top banking SAs there are ways in if you have a strong alumni network or can reach out to someone who champions you through the process. In general, with PE recruiting from IB being pushed up to within the first few months of your job, firms are becoming more comfortable with recruiting out of internships instead.

  3. Most PE funds do - especially those with an international office to move you to after your visa expires. Some might have a higher bar for international students just because of the unpredictability of visa stuff but I don't think its an impediment if you're a quality applicant.

 

My firm is relatively unenthusiastic about the requirement for an MBA. Typically, there are people who go down the MBA route and come back either in a senior position within the firm or as an operating executive within our portfolio, but it definitely isn't a situation where they 'encourage' (read force) you to go do your MBA after a 2 year associate program.

 

Hi! thanks for the AMA. Just wondering when you interviewed and how technical the interview was. Were u asked to do modeling (paper/excel) and how did u prep for the interviews in general?

 

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