Guys,
Obviously current market conditions have made it such that very few funds are hiring and very few deals are getting done. For someone who doesn't work on live deals (at MBB) but has an eye toward PE, my perspective is it will be beneficial to take a very strong 2 year pre-MBA post in Strategy/Corporate Development at an acquisitive Fortune 50.
Other reasons aside, from an eye to the buy-side standpoint, the rationale is:
1)Opportunity to work on live deals at a reputable place with steady deal flow (again for someone without that experience at MBB)
2)Function falls within Finance at F50 and analysts/associates get a very strong "practical" finance skill set not as readily available at MBB outside of corporate finance-type practices: doing gritty valuations, thorough breakdown and build-up of P&L, intense scrutiny of competitor financials, etc.
As context, members of the group are typically a few years out of MBB/top banking/top MBA and have mentioned extensive head-hunter contact for PE, but are staying through cycle given current deal flow there and lack thereof elsewhere.
Now, tee off on this. How beneficial are 2 years of this pre-MBA then go for PE post-MBA (once the market turns) OR stay 3rd year at MBB, do the MBA, then try for PE without deal experience? How much will the live deal experience benefit? A little? A ton? Throw it out there...
I think it's pretty difficult to get into PE post-MBA without pre-MBA PE experience. I'm sure at some of the smaller PE shops (read: small, not MM), you may be able to swing it but from my own observations and the observations of my friends at various PE shops, most of the post-mba associates were previously in PE either at that shop or somewhere else.
The interview structure is a bit different for consultants than it is for bankers, especially at shops that are notorious for having a mix of bankers and consultants (Bain Cap, for example). I'm sure some other consultants turned PE guys/girls could add more to this.
One of the ways to get into PE post-MBA is to have significant operations experience. You'd be surprised how operations people wind up in PE firms because they have an expertise in an industry in which the PE firm aggressively invests in. When PE folks take significant leadership roles in the companies they invest in, you'd be surprised how direct relevant operations experience trumps a post-MBA candidate any day.
Aadpepsi, HerSerendipity, junkbondswap.. Can you folks please elaborate on the exact nature of 'operations' experience that you think is counted as relevant in PE space.
Ah, aadpepsi brings up a great point. That's another route as well.
Many of our MDs and MPs at my shop were industry executives who were recruited based solely on their operational experience. This has been extremely helpful amidst the cost cutting and restructuring that has been going on across many of our portfolio companies.
This is clearly not the best route however as a great deal is left to chance and networking ability whereas a BB stint provides a streamlined (albeit competitive) track to PE.
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