Canadian Pension Fund PE vs. top IBD
I am facing a choice between analyst role of a topIBDposition and a good canadian pension fundPEposition as the start of career. I am an Asian and the two positions are both in Hong Kong. I have learned the two postions have the following pros and cons:
IBD: Good name and good exit opps but the hours could be long and suffering. Besides,PEnowadays are more willing to hire from otherPEinstead ofBB. However, it is the traditional proven good career start in the financial world.
Pension Fund: Good hours and good culture. However, as a pension fund, it is more LP-wise and do co-investment and portfolio management. The buyout deals are not as much in Asia as other regions. But it is also doing direct investment and could enable juniors learn a lot.
What's everyone's thoughts? Thanks in advance!
Comments (17)
你的长期目标是什么?养老金也有趣d would be helpful as they are different.
Hi Potatoes,
I would like to work in the buy side in the long term. Personally, I would treasure career promotion higher than pay or WLB.
The pension fund to be considered is CPP/OTPP.
Has to be OTPP then. CPP isn't hiringFTthis year inHK.
In that case, I would goBBbecause you get more buyside opportunities that fits your investing style afterwards (Buyout/growth/HF) than the Pensions. Dunno what it's like in Asia but for my buddies in Toronto it is very hard to lateral to a GP once you are at CPP/OTPP
I heard to CPP is a shit show. GoIBfor a couple of years and then do whatever you want.
why is that?
Also wonder why is that?
Go topIBD- seems to fit with your long term career ambitions better. Yes there is a grind to begin with but it's not forever.
Just wonder aren't the PF direct investment teams also doing well?
Agree with picking topIBon the basis of generally better networking opportunity long term for having gone to wars alongside fellow analysts shoulder to shoulder. You'll want to get throughIBearlier in your career.
I see a lot of people on this website talk about the benefits of the network you gain in your analyst years. I think the value of this has diminished substantially relative to perhaps 10 or 20 years ago when classes were smaller and firms were more tightknit. YourBBanalyst network nowadays is unlikely to "make or break" your future outcome. I did two years atGSand have been at aMF/UMM for the past 6 years - not once have I talked to my analyst class. Instead, my network has actually come from the deals that I've worked on and outreach that I do to proactively build out my network amongst bankers/operators/founders/etc.
If you want to be an investor, just go to CPP/OTP. Lateraling isn't as difficult as people make it out to be, especially in the Chinese market where network matters much more than brand/pedigree.
To OP: imagine when you're a VP/Principal and just need that one phone call to your buddy fromBB类人恰好是一个大的儿子E. Will leave the rest to imagination. I'm not an expert on doing business in China by any stretch, but I imagine relationships are just as important there as is anywhere else. It really boils down to what you make of it. You could be proactively building relationships with your colleagues, or you could just weather through the 2 years. Really up to you. I imagine the opportunity set is greater at at aBB, all else equal. Of course this would be somewhat different if you plan to internally transfer from CPPIB/OTPP'sHKoffice to TO or another city. Bottom line, still thinkBBhas an edge/wider optionality, but you can't go wrong either way. Congrats on getting both offers.
What subset market area are we talking about at thePEroute?
I would go for the PF. Depends what your long term goals are… people are so concerned with exit opps on this forum as if everyone here works atCVC andKKR.
The pension fund will probably be a good gig that can turn into a long term career. The banking position will never turn into a long term career because more often than not it will be toxic and I don't know who would want to do that long term.
If you're set to be a future investor, in my opinion OTPP/CPPIB is the clear answer. People forget about all the ancillary bullshit that you do as a banking analyst which has no translatable value to the buyside. Also OTPP/CPPIB have built out their direct investing platforms so much that I'd venture to say the majority of your work there will involve underwriting from a true principal/GP mindset, as opposed to co-investments.
I think a lot of the comments here are quite misinformed. Remember there are a ton of people who even leftBBsto go to these pension guys, so even if your base case career path is to stay and get promoted at one of these places, you would have ended up in the "median" buyside recruiting outcome as a default. You have further upside on the table if you want to be a hardo and recruit forKKR- megafunds would definitely consider a pension resume. Now, whether pension vsBBis better optimized for megafund recruiting is a debate, andBB*might* have a marginal advantage out of tradition, but is it smart to risk your career path for a pipe dream? (maybe ~5 megafund spots in all ofHKevery year vs. ~100BBanalysts per class). Be mindful that these pension funds certainly turn downBB第二年分析师简历,所以每年pretty clear to me that going to a pension plan out of school has the better risk-reward in 2021.
Would pick the PF, you would already be inPE. No need to hustle for 2 years in aBBwith the hope of aPEoffer which may not materialize.
Also, you would have an internal edge in the PF, which may help you if you want a long-term career within the same firm.
Assumenda veniam eos porro. Voluptas ut soluta rem incidunt quibusdam. Rerum non dolorem minus.
Omnis aut ipsum enim delectus voluptate. Modi voluptatem provident numquam. Minima veniam corrupti nam natus aliquam accusamus. Non ut ut nulla.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus:6 financial modeling lessons free($199 value)
orWant toUnlockby signing in with your social account?
Preview & download comment as image
You can download this screenshot as image or copy to clipboard using browser's context menu