MBB first year exploring PE options
Hi! I've been at an MBB for around 6 months now (post-undergrad) and am exploring PE associate roles as a potential exit. I am looking at the consultant-friendly funds (Bain Cap, Charlesbank, Berkshire, etc.) as options. I have some questions about the process I'd love some clarification on:
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I'd like to stay at my MBB for up to 3 years (started in October 2023); when do I start recruiting/studying for interviews? Did I miss the recruiting for 2025 at the big funds already? How does the general timeline work? I see so many conflicting responses.
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Best advice to position myself for success in recruiting for PE?
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Compensation at MBB exit + pay post-MBA at these PE firms?
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Are the hours truly that much worse? I keep hearing stories about terrible hours but there are teams at my MBB that work until 12am-2am pretty often so it doesn't seem like the craziest disparity.
Thanks
Bump
As someone who came to PE from MBB:
Technically, the 2025 on-cycle is over, but given how uniquely early it was this year (~late July) many funds sat it out. There are therefore still plenty of opportunities for 2025 start dates at consultant-friendly funds. You could alternatively wait for 2026 on-cycle (who knows when it'll happen, it's been trending earlier every year so I would be fully prepped by June)
Many consultant-friendly funds like the ones you mentioned care less about your ability to complete an LBO-modeling test (although you should still prepare just in case) and instead are more interested in your commercial DD-like skills. E.g., can you essentially solve a case study with a "would you invest in this lens." I would recommending getting extremely comfortable with simple LBOs (bare minimum: should be able to do a paper LBO in your sleep + fill out a templated LBO in Excel), freshening up on your case-study abilities (esp. M&A cases), and do some reading on accounting and PE-specific topics (e.g., how does a dividend recapitalization work). I would also HIGHLY recommend getting a few DD's under your belt before beginning recruiting (4-5 should be sufficient -- try to get on the market model module if possible) that you can walk through with your interviewer. Before having any headhunter conversations, I would also recommend having a pretty clear idea of what types of funds you are looking for -- bare minimum is to have a clear answer on 1). desired geography (can be as broad as "east coast" if you're not sure), 2). preferred fund size, 3). consultant-friendly funds (e.g., are you only looking at places that have a history of hiring consultants), and 4). sector / strategy (e.g., are you interested in growth / buyout, is there a specific industry you prefer -- fine to be generalist though)
First year associates out of MBB are likely looking at all-in compensation of $250-$350k (with the median being ~300-315). Post-MBA, things get much more variable, but you can see a 30+% increase in cash comp + potentially a few $MM in carry
It's less so that the hours are much worse (because if you are in your MBB's PE practice the hours likely suck anyway), but that you are always on and work is always expected to take priority. No more protected weekends, no more beach time, etc.
Hope that helps -- good luck!
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