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How to get into PE/IB? Help from experienced people!

Hey guys!

I just cleared my level III and wanted to get into PE/IB. How do i prepare myself? What are these guys looking for?

Take the caia now 

AbrahamIsaac wrote:

Take the caia now 

lol, no.

We’re gonna win so much, you may even get tired of winning. And you’ll say, 'Please, please. It’s too much winning. We can’t take it anymore. Mr. President, it’s too much.' And I’ll say, 'No, it isn’t!' We have to keep winning!

How old are you, that is your educational/work background, are you any good? Etc etc. Assuming you really want an answer, these details are quite material.

“The aliens on Mars cloned Hillary Clinton.” - Turd Furgeson

i got into pe/ib as soon as i gave l3 and cleared

"You want a quote? Haven’t I written enough already???"

RIP

Top 5 MBA for PE.  Top 15 for IB is ok (though BB IB you’ll need top 5-10).

I interviewed as a non-traditional hire for one of each lately, one small PE, and a MM IB who is one of the strongest in its industry. What I got from it was PE is very hard to crack without IB experience (they hired an ex banker). IB is possible but you need to bring very strong industry experience. Before I showed up, I studied every deal their team did in the last year (they asked some very detailed questions which I was able to answer), memorized all the key metrics, and formed my own opinion on the major ones. I got asked repeatedly to walk them through a very specific type of valuation model used in my field and I did it no problem.

Both don’t really care about the CFA… I think out of the 12 or so total people who interviewed me, 1 asked me about it and I said, “felt like it was a quick and easy way to learn the basics of finance without going back to school” and pushed forward. If they don’t have it, their bosses don’t have it, and peers at other firms don’t have it, it’s not worth explaining. Since I didn’t go the traditional route, I wanted to make them comfortable, no need to create a division.

I got super close to an offer.. they said as soon as a 1-2 year analyst leaves, I’m in without any more interviews because the MD (who I didn’t meet with) wanted someone with just a bit more experience. I had 1 live offer and several more coming, so I couldn’t wait. Rather not say what and where, but wasn’t IB.

We’re gonna win so much, you may even get tired of winning. And you’ll say, 'Please, please. It’s too much winning. We can’t take it anymore. Mr. President, it’s too much.' And I’ll say, 'No, it isn’t!' We have to keep winning!

PE and IB are very different. You should first educate yourself on the diff between the two and choose which route you want to go.  Within PE there is the real estate PE and venture capital PE. 

Be yourself. The world worships the original.

CFABLACKBELT wrote:

Top 5 MBA for PE.  Top 15 for IB is ok (though BB IB you’ll need top 5-10).

True, i might even push it to top20 for IB now….The saying goes…if you got an IB job out of top5 MBA program, you’re looked as “damn it was that tough for you man that you settled with IB?”

Lots of people from top MBA programs go in as corporate developer or corp strategy for tech firms - much higher pay and you actually have life. Or people go into mgmt consulting.  It is really strange.  People who are not in high finance put IB jobs on a gold platter but once you are in position to take either IB or other finance jobs in tech or consulting, it is no brainer to AVOID IB at almost all costs.

Be yourself. The world worships the original.

^true. my relative went to work at google over a bunch of other high finance offers

"You want a quote? Haven’t I written enough already???"

RIP

infinitybenzo wrote:

CFABLACKBELT wrote:

Top 5 MBA for PE.  Top 15 for IB is ok (though BB IB you’ll need top 5-10).

True, i might even push it to top20 for IB now….The saying goes…if you got an IB job out of top5 MBA program, you’re looked as “damn it was that tough for you man that you settled with IB?”

Lots of people from top MBA programs go in as corporate developer or corp strategy for tech firms - much higher pay and you actually have life. Or people go into mgmt consulting.  It is really strange.  People who are not in high finance put IB jobs on a gold platter but once you are in position to take either IB or other finance jobs in tech or consulting, it is no brainer to AVOID IB at almost all costs.

This dude I worked with went from my group in management consulting to HBS to a slightly higher ranked management consultancy… I was like wtf? lol

Meanwhile, my classmate at school who was 1 yr ahead of me did ~4 years M&A niche IB, then went straight to McKinsey (without any MBA) …. not too shabby

"It is a rational thesis that we are all within a dream; it will be a mystical sanity to say that we are all awake." - G. K. Chesterton

Yes I have 1 year of experience as an equity analyst in a Trading firm in Dubai. Currently working in a local bank as a credit analyst for past 8 months. Not that good as my learning curve has been short and I am looking at roles more client facing. Education = Bachelors degree in Accountancy and Finance from a Heriot-Watt University Dubai Campus. Age - 22. 

Yes I have 1 year of experience as an equity analyst in a Trading firm in Dubai. Currently working in a local bank as a credit analyst for past 8 months. Not that good as my learning curve has been short and I am looking at roles more client facing. Education = Bachelors degree in Accountancy and Finance from a Heriot-Watt University Dubai Campus. Age - 22. 

What were your strategy and background? Any tips?

so you have 1 year as an equity analyst & are working as a credit analyst at a local bank at 22? They are going to wonder why you have moved around so much. And based on what i read online, dont most of the jobs in the ME go to like the royal families spoiled stupid kids? Your best bet would be to reborn as a royal family member, thats what I would do. Reset button bro

edit: do not i repeat, do NOT be reborn as a maid from the philippines in the ME when you hit the reset button

'A flute with no holes, is not a flute. And a donut with no hole, is a danish'

Yayyywork wrote:

so you have 1 year as an equity analyst & are working as a credit analyst at a local bank at 22? They are going to wonder why you have moved around so much. And based on what i read online, dont most of the jobs in the ME go to like the royal families spoiled stupid kids? Your best bet would be to reborn as a royal family member, thats what I would do. Reset button bro

edit: do not i repeat, do NOT be reborn as a maid from the philippines in the ME when you hit the reset button

what about being born as Barron Trump …. lol that guy

"It is a rational thesis that we are all within a dream; it will be a mystical sanity to say that we are all awake." - G. K. Chesterton

^ that would also help good plan. Or a Rothschild/Kennedy/Clinton/Koch. Basically just dont be reborn poor, and be reborn rich and you should be about 1/2 way there

'A flute with no holes, is not a flute. And a donut with no hole, is a danish'

It does go to the rich kids out here ..that is why I want to jump somewhere else. Bro I am Asian here and I am not entitled to that jobs as I am not a local from this country. So bro give me a genuine solution

honest answer? you probably wont get into PE/IB

'A flute with no holes, is not a flute. And a donut with no hole, is a danish'

Gram wrote:

It does go to the rich kids out here ..that is why I want to jump somewhere else. Bro I am Asian here and I am not entitled to that jobs as I am not a local from this country. So bro give me a genuine solution

As a fellow CFA person here is my take.  My reply above still stands - that you need to first differentiate between IB and PE. I am assuming you want venture capital PE, which is buy side and these folks have some spectacular looking resumes.  IB on the other hand is sell side and here in the US, with luck people have gotten into smaller shops.  But at minimum you should know some accounting - GAAP, pro-forma, fully understand the relationships of the financial statements - and modeling. 

No one in IB or venture funds or real estate funds or hedge funds care about CFA.  They want to know what can you do for them?  Can you model? can you do pro-forma?  They don’t care about LIFO vs FIFO or FCFE vs FCFF stuff or residual income.

Be yourself. The world worships the original.

Amazing Viewpoint. Yes, I do understand the difference. thanks for your opinion…

Gram wrote:

It does go to the rich kids out here ..that is why I want to jump somewhere else. Bro I am Asian here and I am not entitled to that jobs as I am not a local from this country. So bro give me a genuine solution

Your grammar is beyond my comprehension.

A plumber or a male stripper? 

Which is more appealing? 

infinitybenzo wrote:

Lots of people from top MBA programs go in as corporate developer or corp strategy for tech firms - much higher pay and you actually have life. Or people go into mgmt consulting.  It is really strange.  People who are not in high finance put IB jobs on a gold platter but once you are in position to take either IB or other finance jobs in tech or consulting, it is no brainer to AVOID IB at almost all costs.

Is this like a CFO role?

I think you will still earn more in IB as an associate, but I don’t know if it is still enough to justify the culture difference.

“The aliens on Mars cloned Hillary Clinton.” - Turd Furgeson

hei.so wrote:

infinitybenzo wrote:

Lots of people from top MBA programs go in as corporate developer or corp strategy for tech firms - much higher pay and you actually have life. Or people go into mgmt consulting.  It is really strange.  People who are not in high finance put IB jobs on a gold platter but once you are in position to take either IB or other finance jobs in tech or consulting, it is no brainer to AVOID IB at almost all costs.

Is this like a CFO role?

no, this is very similar to that of M&A team at an IB except that as corporate developer you are the buy side.  If you look at MSFT 10k, these guys make 2-10 acquisitions per year and some are multi billion dollars.  MSFT, and all large companies have internal investment bankers. 

Be yourself. The world worships the original.

I’m not convinced corp dev is a better gig than IB, brah. How is performance measured there? You originated and supported some acquisitions, maybe they were good or maybe there were bad. For a large deal integration can take years, measures of successful deal can be fuzzy, at the end of day you are a dispensable cost center whose comp is tied to parent company performance and operational metrics over which you have marginal influence.

When you grow in IB beyond an analyst monkey, you eat what you kill. Big deals, small deals, good deals, bad deals - your comp and performance metrics are tied to origination and closing. More directly relevant to your level of individual effort and ability.

Mobius Strip wrote:

I’m not convinced corp dev is a better gig than IB, brah. How is performance measured there? You originated and supported some acquisitions, maybe they were good or maybe there were bad. For a large deal integration can take years, measures of successful deal can be fuzzy, at the end of day you are a dispensable cost center whose comp is tied to parent company performance and operational metrics over which you have marginal influence.

When you grow in IB beyond an analyst monkey, you eat what you kill. Big deals, small deals, good deals, bad deals - your comp and performance metrics are tied to origination and closing. More directly relevant to your level of individual effort and ability.

The fact is nowadays, if you sign up with an IB from top MBA program it is considered last ditch effort aka failure.  Most go to tech firms specifically as corp developers and corp strategy.  Your performance is measured probably by the synergy it created and the rise in stock prices, earnings, margins etc just like any buy side.  Pay is better, you actually have life, and it is very tough to get in.  I got dinged for a position at microsoft few months ago.  the pay was base of 130k which is like making 200k base in NYC and their bonus and stock options were comparable if not better than that of big bank IBs AND buyside firms in NY.  Most importantly, you come to work at 9 and go home at 5pm.

Just like any buy side equity fund or PE fund, these teams are very small unlike sell side IB…..so as the company earnings grow your department’s comp grows with it…..I know that the pros clearly outweigh the cons here from what i have seen and heard……

Again, top perfomers from MBAs get these jobs at tech firms or go into mgmt consulting then next up is buy side firms.  Usually in last place, IB.

Be yourself. The world worships the original.

infinitybenzo wrote:

Most importantly, you come to work at 9 and go home at 5pm.

surprise

We’re gonna win so much, you may even get tired of winning. And you’ll say, 'Please, please. It’s too much winning. We can’t take it anymore. Mr. President, it’s too much.' And I’ll say, 'No, it isn’t!' We have to keep winning!

hpracing007 wrote:

infinitybenzo wrote:

Most importantly, you come to work at 9 and go home at 5pm.

surprise

9-5 and free shuttle to and from work and 6 in-campus restaurants…130k base in a city where you can rent a 2 bedroom for 1500 dollars with 30 min drive from MSFT campus….Almost too good to be true….well i didn’t get the job so….

Be yourself. The world worships the original.

brah, so much fake news in your post. SAD.

Yes, there has been some outlay of MBA grads to VC/Tech from top programs that traditionally go for IB. Primarily driven by millenials chasing unicorns and looking to “make a difference in the world” or “disrupt an ecosystem”. Certainly not driven by pay. Tech firms have tapped into this trend by offering collaborative open office spaces, stupid perks, flexible work environments and opportunities to innovate & disrupt by following your dream career. Whatever floats their boats, brah. No way on average cash pay is better than IB especially with the monster M&A bull market over the past several years. 

In fact, IB recruitment at MBA programs is down cause more and more good analysts get promoted to associates and skip the MBA route altogether. It’s a two way street.