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# Switching into PE/VC?

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Re: Switching into PE/VC? [#permalink]

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12 Jan 2012, 08:49
I don't understand the post. Are you looking for someone to persuade you to switch into PE/VC? Please clarify.
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Re: Switching into PE/VC? [#permalink]

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24 Jan 2012, 12:14
shr30 wrote:
My outside in view from a lot of MC friends who either went to IB/PE/B-school @ H is that PE = Dollars and a lot of respect for MC/IB.

VC respects Startup experience or product management experience a lot more than IB/MC

I'm looking to go VC only (and not PE unless it's the internal consulting group @ Carlyle / Blackstone) in my "ideal" world.
Let's see how the apps and THEN the damn applications for jobs pan out.
Cheers

jbharris88 wrote:
curiousapplicant wrote:
If in an ideal world you had an option for either VC or PE to internship in, as a career switcher, which would you choose and why?

Wouldn't mind hearing others inputs on this.

I know you are all wondering why an admissions consultant is chiming in here, but I've been career coaching a LOT of PE/VC wannabes. I worked on Wall St out of HBS -- a while ago -- and many of my friends and classmates who ended up at in either PE or VC or hedge funds took some pretty traditional paths. I live in the Bay Area and know a lot of VC types, an they are really very different from the PE crowd.

1. Many I know who are PE barons came out of IB at a top M&A shop. If you are really going for the premier PE names, then a brand name, M&A firm is a good bet.
2. VC doesn't hire much right out of b-school. You won't see them recruiting on campus. If you really are interested in that path, it's a good idea to do the pro-bono internship somewhere along the way to get inside and to get connected. Sure the PE world is small, but the VC world is clubbier in its own way. You just want to be open and learn as much as you can.
3. One of the important things about the PE vs VC debate is your background. VC firms like a strong tech background. Sure, you see some CPG type investments, but many VC porfolio companies have some tech component, and you want to be able to understand that part of it. PE certainly requires some business knowledge, but the big shops have analyst>MBA>associate career paths , while VC firms do not.
4. Yes, Bain Capital has a number of ex-Bainies, for obvious reasons. Management consulting is not necessarily the easiest path to PE, but it can get you there.

Things do change (remember 2009?), and nothing is set in cement. But if you are thinking hard about going to business school because you want a career in this field, you probably want to find out what current students and recent alums are saying. I wrote a blog post with some tips about networking to get some of your questions answered: http://masteradmissions.com/wp/2012/01/ ... n-finance/
It may be a little generic for most of the posters on this thread, but even if it gives you one idea to make one connection, why not?

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Re: Switching into PE/VC? [#permalink]

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12 Jul 2012, 02:15
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Re: Switching into PE/VC? [#permalink]

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14 Jul 2012, 15:12
I'm not really too interested in pursuing PE/VC after my MBA, but I was just wondering what kind of salary a first year analyst would make. Is there a big difference between PE and VC? It seems like a lot of people at HSW come from PE/VC backgrounds. What is a pre-MBA comp level for them?
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Re: Switching into PE/VC? [#permalink]

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15 Jul 2012, 16:46
I'm not really too interested in pursuing PE/VC after my MBA, but I was just wondering what kind of salary a first year analyst would make. Is there a big difference between PE and VC? It seems like a lot of people at HSW come from PE/VC backgrounds. What is a pre-MBA comp level for them?

I think the range is probably like 200-400k for PE, depending on how many years they've been working before business school. I want to say that many 1st year pre-mba PE associates (so call it 2 or 3 years experience in IB) were pulling 250k at the megafunds.
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Re: Switching into PE/VC? [#permalink]

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21 May 2013, 13:52
In my exploration of the 'breaking into PE/VC' this seems to be the consensus, which is quite unfortunate for someone like me.

2 questions given my background of non-target undergrad & 2 years at Corp Fin Leadership Program.

1. If PE/VC is my goal would you
A) attempt to get into IB/Corp Dev before going to B-school? (serious likelihood that to accomplish this I would take a step down from F500 to small/middle market and in doing so hurt my b-school chances)
B) use my current position to get into a good b-school (M7, prob not HSW) and hope for luck?

2. Given the risky timeline, have you every heard of anyone renegging on an internship/job offer from say Corp Dev to take a PE job they got down the road?

cougarblue wrote:
That was a funny post, Rhyme, I wonder if it was funnier if you have a background in programming languages.

I think there needs to be a distinction made between PE and VC. While in actuality VC is a subset of PE, the term PE nowadays almost always refers to LBO PE firms. PE hiring is becoming a little more institutionalized than VC ever will be, but it still is quite unlike IB/MC or other traditional career paths.

For VC I think the “network” angle is as important as rhyme says it is, I really don’t know. However, for LBO PE it’s a combination of that plus your previous experience and pedigree that will get you interviews, usually via recruiters. To get jobs in LBO PE you are competing with those who have pre-MBA work experience doing (in order of general competitiveness, according to me):

1) BB IB / Top MC + Mid-Large Cap PE
2) Mid-Large Cap PE
3) BB IB / Top MC
4) Small no name PE / MM IB
5) Small no name IB / Non-Top MC / Big 4 Transaction or Due Diligence
6) Industry / Corp Development / Big 4 Other
7) All other career switchers

Keep in mind that almost all of these people will also have good academic pedigree including: a respected undergrad (high GPA), test scores (SAT + GMAT), and a top MBA. It is possible that pedigree, e.g. HBS MBA, could help you jump a level relative to the above ordering, but the problem is that pedigree is already there in almost all of those groups. The good news is that the smaller and less established the PE firm, the less this ordering applies (not because they would rather take someone from #6 and #7 over #1 and #2, but because there aren’t so many of #1 and #2 to go around.)

While there might seem to be a good amount of PE shops, they are staffed very lean and definitely don’t want to train their junior professionals. In my limited experience, I’ve heard a lot of guys that are in #5 or below and not going to a H/S/W say that they want to do PE and I have to refrain from telling them that they are pretty unlikely to get a job in PE, because I don’t want to be “that guy”. But the reality is that it’s very, very tough. However, networking can be the great equalizer. I would encourage all those from #5 and below to give considerable thought to doing IB first before putting their eggs in the PE basket.
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Re: Switching into PE/VC? [#permalink]

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08 Jun 2013, 09:17
There was a really good section on Enterpreneurship in the May issue of the HBR and included 2 long articles on VC and one interview:
1. 6 Myths about Venture Capitalists
2. How to Negotiate with VC's
3. Interview with Marc Andreessen

Recommended.
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Last edited by bb on 08 Jun 2013, 21:33, edited 1 time in total.
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Re: Switching into PE/VC? [#permalink]

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21 Jun 2015, 01:13
Anyone from the users above who had questions & concerns managed to end up in either PE or VC?
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Switching into PE/VC? [#permalink]

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04 May 2016, 11:50
lala10 wrote:
I'm not really too interested in pursuing PE/VC after my MBA, but I was just wondering what kind of salary a first year analyst would make. Is there a big difference between PE and VC? It seems like a lot of people at HSW come from PE/VC backgrounds. What is a pre-MBA comp level for them?

I think the range is probably like 200-400k for PE, depending on how many years they've been working before business school. I want to say that many 1st year pre-mba PE associates (so call it 2 or 3 years experience in IB) were pulling 250k at the megafunds.

There's some more data available at http://www.transparentmba.com - it's user reported salary and total comp information (as well as non-monetary statistics like hours worked, satisfaction, travel %) - we have some PE and VC data points.

Good luck!
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Re: Switching into PE/VC? [#permalink]

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19 May 2016, 04:33
rhyme wrote:
PE/VC recruiting is basically this:

If "You were in PE/VC before an MBA"=TRUE {
solid=like a rock;
else
solid=like water;
}

If solid=like a rock {
Then
You have a Network = TRUE;
Else {
You have a Network = FALSE;
}

If You have a Network = TRUE {
Then
PE/VC Job Probability Function = .0009;
Else
PE/VC Job Probability Function = 1x10^-42;
}

Recruiting_Begins();

If solid=YOU SUCK {
while (calls<10,000) {
Network_Like_Mad(Every Day, All The Time);
Foreach(Call(EveryoneInTheWorld())="ACTUAL CONVERSATION")) { calls++; }
}
Pray->God(); // Warning call to null pointer? There is no god?
Backup_Job_Plan->Trash(NOW());
Watch_Everyone_Else_GET(IB);
Watch_Everyone_Else_GET(MC);
Watch_Everyone_Else_GET(GM);
if (male = true) {
Make_Of_Steel(Balls);
else {
Dig_In(Heels);
}
Job_Offer=PE/VC Job Probability Function*calls
}

In short, landing a PE/VC gig is 98% who you know. It's ALL networking.

The biggest issue frankly is that you have to be 120% commited. PE/VC recruit in spring - after IB, after MC, after GM, marketing, hedge funds, commercial finance, leadership programs, after basically everything. To do PE you have to roll the dice - and roll with a big bet. Its not for the risk averse.

Haha! Well put Rhyme!
Re: Switching into PE/VC?   [#permalink] 19 May 2016, 04:33

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# Switching into PE/VC?

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