current Undergrad who's in the process with top tech growth firm (GA/Insight) and LO AM (Cap/D&C/Welly) and pretty split on which I would choose, seems like there are some solid pros and cons for each. I'm most interested in gaining strong investing experience, and also want to get an MBA. Would be interested to hear perspectives about both!
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Based on the most helpful WSO content, when comparing Growth Private Equity (PE) and Long-Only Asset Management (LO AM), there are several factors to consider, especially if you're interested in gaining strong investing experience and pursuing an MBA in the future. Here's a breakdown of some pros and cons for each:
Growth Private Equity (e.g., General Atlantic, Insight Partners): - Pros: - Investing Experience: You'll likely get hands-on experience with due diligence, deal execution, and portfolio management. - Career Growth: Growth PE firms often have a flatter structure, which can lead to more opportunities for rapid advancement. - Compensation: Generally, PE offers higher compensation compared to AM, especially with carried interest in the long term. - MBA: While an MBA can be beneficial, it's not always a requirement for advancement in PE firms.
Long-Only Asset Management (e.g., Capital Group, Dodge & Cox, Wellington Management): - Pros: - Investing Experience: You'll gain experience in public markets, which is different from the private markets focus of PE. - Work-Life Balance: Generally, LO AM offers a better work-life balance compared to PE. - MBA Friendly: Asset management firms often value an MBA, and some may even sponsor your studies.
When deciding between the two, consider where your interests lie. If you're drawn to the excitement of private markets and direct involvement in the growth of companies, Growth PE might be the right fit. However, if you prefer a more analytical role that involves public equities and a potentially better work-life balance, then LO AM could be more suitable.
Remember, both paths can provide strong investing experience, but the environments and investment focuses are quite different. Your decision might also be influenced by the specific firms you have offers from, as firm culture and individual opportunities can vary widely within each sector.
Sources: Exit to LMM PE - Pros & Cons?, Pros and Cons of Growth Equity when compared to IB?, LMM PE Associate Experience - What is it REALLY like?, LMM PE or MBA better for Search Fund / Entrepreneurship?
Tech growth PE, then try for LO AM post-MBA if still interested at that point. Those roles out of undergrad are most often a dead end (chance of promo is effectively 0%) so tech growth PE will give more options without closing the LO AM door longer term
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