Advice on lateral recruiting in PE
Hey everyone, I need some advice. I’m a British (need H1B) student at a top target with a very high GPA. I recruited for a BB in London for my junior summer but realized that starting in the US would be better for me career-wise. So, I networked starting my junior spring (spring 2023) and tried for FT2024. Unfortunately, got only one SD for banking and couldn’t convert it. I was lucky enough to get an offer from a strong MM PE in Tier 2 city and will be starting there. Nonetheless, I want to work at a MF early in my career for various reasons (optionality, prestige, pay, etc.) I also want to be in NY as most of my friends are gonna be there.
Regardless of the reason, what should be my next move? Do you think it makes sense to recruit for a top bank as AN1 or lateral as AN2 after working for a year and then re-recruit for PE? Or should I just stick it out and try to move up the market in a few years? Can I apply for on-cycle if so how competitive would my profile be?
I know it’s a lengthy post but appreciate any insights!
Hey there, fellow finance enthusiast! Based on the most helpful WSO content, here's what I can share:
Recruiting for a Top Bank: This could be a good move, especially if you're aiming for a mega fund (MF) in the future. Top banks often have a strong track record of placing analysts into MFs. However, it's important to note that this path might require you to go through the rigorous process of investment banking recruitment again.
Lateral as AN2: This could be another viable option. If you perform well in your current role, you might be able to lateral to a larger fund or a bank after a year. This could potentially put you in a better position for PE recruitment.
Stick it Out: If you enjoy your current role and see potential for growth, it might be worth sticking it out and trying to move up the market in a few years. This could potentially give you a more solid foundation and make you a more attractive candidate for MFs in the future.
On-Cycle Recruitment: On-cycle recruitment is highly competitive, and it typically starts very early (often within a few months of starting your first job). Your profile would likely be competitive, given your high GPA and experience at a strong MM PE firm. However, it's important to note that on-cycle recruitment can be a bit of a gamble, as it often requires you to commit to a new role very quickly.
Remember, there's no one-size-fits-all answer here. The best path for you will depend on your personal goals, risk tolerance, and the specific opportunities that are available to you. Good luck!
Sources: PE Lateral Recruiting Advice/Stories/Help?, https://www.wallstreetoasis.com/forum/private-equity/just-broke-into-ib-as-a-lateral-how-do-plan-my-move-to-pe?customgpt=1, Lateral to better bank and recruit off cycle or stay at UBS and recruit on cycle?
Similar situation here, but landed in a strong industry IB firm. I’ve been told that on cycle will probably not be worth it as most firms won’t give us a chance without the H1-B visa in hand.
My firm said that they can't file before graduation as you need your bachelor's. I'm gonna be on OPT my first year and then file in spring 2025. Is that the case for you as well?
Fairly sure they can file for this year mate. I got told as long as you graduate by 30 June it should work out for 2024
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