<p>Anyone here with knowledge or experience of people who have started out in I-banking and after a 2-3 year analyst program they jumped over to Private Equity? What are the pros and cons of this and why do people do this?</p>
<p>Plenty of people jump over from PE, generally via headhunters or relationships that senior people at the bank have. PE typically offers much higher pay (possibly up to ~$300k as a 1st year associate and $10s of MM’s later on) while having a much better work/life balance. It’s still not a 9-5 job and at certain funds (KKR and Apollo in particular) you’ll still be working 70-80 hour weeks, but you’re not expected to be in the office at 1AM like you might be as an analyst. </p>
<p>A lot of people find the work to be much more interesting as well because you’re actually working with companies and helping them improve. It’s not everyone’s cup of tea (there are people that are bored as hell in PE) but it’s a pretty good gig if you can get it. PE recruiting is very tough though and it’s very difficult to get in if you’re not at a top bank. Your number one goal as an analyst should be to work your ass off and be the best analyst at the group so you can get killer recommendations for the buyside.</p>
<p>Another thing: as an associate at a PE shop, you’re often expected to leave after 2-3 years to get your MBA, similar to a banking analyst. Some firms will sponsor your MBA, others won’t. There are some that offer a partnership track as well, but from what I’ve seen, they’re relatively rare.</p>
<p>Pros:
Way more money: $250-300k is normal (TPG, Carlyle, etc.), up to 400k is possible at really top places like Apollo. Either way it’s much more than what you’d make as a third year analyst.</p>
<p>Better lifestyle: Not 9-5 as someone mentioned, but generally free weekends.</p>
<p>More interesting: Let’s face it, you want to be an investor, not a sellside banker.</p>
<p>Cons:
None that I’m aware of.</p>