How do PE exits compare at mid/low tier BB to mid/low tier EBs
There's a lot of posts on this site comparing EB exits to EB exits and BB exits to BB exits. I'm curious how an EB's exits would compare to a similarly tiered BB. How would upper quartile vs. median vs. bottom quartile exist differ?
Based on the most helpful WSO content, when comparing PE exits from mid/low tier Bulge Bracket (BB) banks to similarly tiered Elite Boutique (EB) banks, there are several nuances to consider:
Performance and Exit Opportunities: Generally, EBs, even at mid or lower tiers, tend to have strong exit opportunities into private equity, often comparable to or sometimes exceeding those of mid-tier BBs. This is partly due to the specialized nature of EBs, which often focus intensely on M&A and restructuring, areas highly valued by PE firms.
Analyst Performance Impact: At both types of institutions, the performance of an analyst can significantly impact their exit opportunities:
Firm Reputation and Networking: The reputation of the specific BB or EB and the networking abilities of the individual also play crucial roles. Analysts in EBs might benefit from closer relationships with senior bankers who can provide more personalized mentoring and networking support, which is beneficial for PE recruiting.
Deal Exposure: EBs often provide exposure to high-profile, complex deals, even if they are smaller firms. This experience can be very attractive to PE firms looking for candidates with deep technical skills and deal experience.
In summary, while both mid/low tier BBs and EBs offer pathways to PE, the nature of the EB environment—focused, intense, and deal-driven—can provide a slight edge in PE exits, especially for those in the upper performance quartiles. However, individual performance and networking play significant roles in determining the exact nature of exit opportunities.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/eb-vs-bb-long-term-and-exits?customgpt=1, Mid-tier BB vs MBB for PE, mid tier bb's and eb comparison, 500+ exists into PE analysed
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