IB vs Private Credit Offer. How to chose?
Recently got two offers out of school and deciding which to chose from:
Option 1: Small IB shop that is pretty specialized. Seems like a very good culture, with direct learning from MDs who have been at it for 30+ years with over 500 deals. Would have a lot of responsibility right away and report directly to MDs (I like the idea of this even though it probably means more work).
Option 2: Small Private Credit fund also in sort of a specialized niche 500m in AUM. Team of 8 or so in the actual investing side (a couple analysts that are moving to associate soon- a couple VPs- and a couple partners). They are looking to get to 1B in AUM with a clear path to do it in 2-3 years they say. Seems much more structured in the analyst role reporting to associates and VPs mostly.
Both seem like great opportunities and are in the same city. Comp at IB shop is about in line with first years at big firms at a 50/50 base to bonus split. Private Credit shop comp is less total but more on base, Honestly, trying to figure this out with out looking at the salaries.
I think the IB shop I could move up very fast at whereas the Credit side is more structured 2 years analyst etc...
Would love to get some peoples opinion on this
Anything helps thanks in advance
When deciding between an offer from a small Investment Banking (IB) shop and a small Private Credit fund, it's crucial to weigh the pros and cons of each based on your career goals, learning preferences, and the kind of work environment you thrive in. Here's a breakdown to help you make an informed decision:
Small IB Shop:
Pros:
Cons:
Small Private Credit Fund:
Pros:
Cons:
Decision Factors:
Ultimately, both options present unique opportunities for growth and learning. Reflect on your career aspirations, personal preferences, and values to guide your decision. Remember, there's no one-size-fits-all answer, and what matters most is choosing the path that aligns with your goals and where you see yourself thriving.
Sources: On-Cycle, IB Offers, Hair Splitting, Depression, and "The Path", Top Private Credit vs IB for Developing Investor Skillset?, Buy-side vs sell-side path to credit funds, Take which offer: Corporate Finance at Big Tech (Google, Microsoft, Apple, Facebook), Valuation at non big-4, or boutique IB?, Internship Choices (PE vs IB)
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