Ask an Associate working in Private Equity on Wall Street anything

[forgot about jae]

How do I invest my first $1000 responsibly ?

 

[Hank Scorpio]

How do I invest my first $1000 responsibly ?

I'm not a financial adviser. I do not give other people professional financial advice I work more in a corporate setting.

Open a high-yield savings account or put that money into a CD.

 

[bangdak]

What certifications do you recommend getting first? (Level 1 CFA or Series 63, 7, etc.)

Tips and advice on studying for them?

 

[defobking]

any advice on how to improve your excel skills?

 

[eplaya06]

How difficult would it be to transfer from management consulting (MBB) to private equity post-mba? I have some interest in IB after I get my MBA, but not sure if my relationship can handle those hours.

 

[Hank Scorpio]

What certifications do you recommend getting first? (Level 1 CFA or Series 63, 7, etc.)

Tips and advice on studying for them?

I wouldn't get a series 7 or 63 unless It's sponsored by someone. It's just not worth it paying all that money for certification you may never use. Besides, I don't think they let you take the exam unless you have a sponsor.

I would recommend you getting your CFA Level 1 though. That actually has meaning and shows that you're serious.

any advice on how to improve your excel skills?

Take an Excel/Powerpoint workshop if you're still in school. I'm sure most colleges/universities offer these type of workshops every semester. If not, then I would suggest you try to find some classes online or through YouTube. Although, I'm not sure how effective those would be. The workshops on the other hard, are great and very helpful.

I'll say this though--I learned how to use Excel/PowerPoint much more efficiently while I was working than what I learned in school. They usually teach you the basics and fundamental principles in those workshops. At work, you pick up on all the shortcuts and become less mouse-dependent.

How difficult would it be to transfer from management consulting (MBB) to private equity post-mba? I have some interest in IB after I get my MBA, but not sure if my relationship can handle those hours.

It's pretty difficult, considering how people spend their whole professional careers trying to get into Private Equity. It's not impossible, but you'd have to be the best of the best. You would have to graduate top of your class or be the elite few who are in the top 10. It's that route or you know someone from the inside and network like a ninja.

You would have an easier time getting into IB post-MBA than you would trying to get into PE. Most MBA programs require their students to complete a Summer Associate program after their first year in B-school. Usually the place you did the Summer Associate program after the first year will give you another one the following summer. In most cases they will give you a full-time offer after graduation.

 

[frankl1001]

what are your strengths/weaknesses

 

[Hank Scorpio]

what are your strengths/weaknesses

I'm not going to answer that like an interview guide

 

[fontaine]

I wanna PM you famb...

but I don't want to be a groupie...

I got a lot of more intricate questions that you may not can answer in a public forum..

sup widdit...?

 

[bruce negro]

I wouldn't get a series 7 or 63 unless It's sponsored by someone. It's just not worth it paying all that money for certification you may never use. Besides, I don't think they let you take the exam unless you have a sponsor.

Pretty sure that's the case. At my IB all of the first-year analysts have to take it before they can start working. They make you study during training and then take the tests. It's not something the bank expects you to have before you come. Although I can't say for sure that's how it works with PE, it's probably something similar - if you even need it at all.

 

[Hank Scorpio]

I wanna PM you famb...

but I don't want to be a groupie...

I got a lot of more intricate questions that you may not can answer in a public forum..

sup widdit...?

PM me. I'll try to answer your questions the best I can.

Pretty sure that's the case. At my IB all of the first-year analysts have to take it before they can start working. They make you study during training and then take the tests. It's not something the bank expects you to have before you come. Although I can't say for sure that's how it works with PE, it's probably something similar - if you even need it at all.

Bruce, you still at work homie? I remember working during the Summer's when I was in IB--It wasn't fun. All my friends got to go out every night and enjoy the weather, while I was sitting in front of my computer working away at pitch books that probably never saw the light of day.

It feels good to be home by 7:30 and watch the sunset. There were times I would go into work before the sunrises and would come home after the sunset.

People would be amazed when I told them what I do, but when they hear about the 90+ work hour weeks and the thought of losing a social life--people bow out.

As for the question:

I agree with Bruce. The only part I'd add is that all BB's will require you to get those licenses within the first month of employment. People seem to believe that the first month at any BB is a piece of cake, and what comes after is the hard part. Relatively speaking--Yes, this is true to a certain extent. But it doesn't mean it's a cake walk.

During the first month of employment, you're taught how to use excel, powerpoint and you have workshops for your licenses. BB's expect that you complete the workshop and get all your licenses within the first month of employment. Now, if you don't have a finance background, passing these exams can be quite difficult. Especially the Series 7. If you're in IB, the 79 is much more intense and heavily involves critical thinking skills. You also have to get the 63, which is just a bunch of laws you must know. Not a cake walk, to say the least.

As for PE, some firms will have similar procedures. In most cases, PE firms hire professionals who already have these licenses. It's very rare you see someone go into PE directly out of undergrad. There are special cases, but for the most part--you just don't see it. Some PE firms don't even require the need for those licenses, but it all depends what you're doing in PE.

 

[bruce negro]

PM me. I'll try to answer your questions the best I can.
Bruce, you still at work homie? I remember working during the Summer's when I was in IB--It wasn't fun. All my friends got to go out every night and enjoy the weather, while I was sitting in front of my computer working away at pitch books that probably never saw the light of day.

It feels good to be home by 7:30 and watch the sunset. There were times I would go into work before the sunrises and would come home after the sunset.

People would be amazed when I told them what I do, but when they hear about the 90+ work hour weeks and the thought of losing a social life--people bow out.

As for the question:

I agree with Bruce. The only part I'd add is that all BB's will require you to get those licenses within the first month of employment. People seem to believe that the first month at any BB is a piece of cake, and what comes after is the hard part. Relatively speaking--Yes, this is true to a certain extent. But it doesn't mean it's a cake walk.

During the first month of employment, you're taught how to use excel, powerpoint and you have workshops for your licenses. BB's expect that you complete the workshop and get all your licenses within the first month of employment. Now, if you don't have a finance background, passing these exams can be quite difficult. Especially the Series 7. If you're in IB, the 79 is much more intense and heavily involves critical thinking skills. You also have to get the 63, which is just a bunch of laws you must know. Not a cake walk, to say the least.

As for PE, some firms will have similar procedures. In most cases, PE firms hire professionals who already have these licenses. It's very rare you see someone go into PE directly out of undergrad. There are special cases, but for the most part--you just don't see it. Some PE firms don't even require the need for those licenses, but it all depends what you're doing in PE.

The amount of time I stay inside makes me feel like a vampire sometimes

But yeah, unfortunately I'm still at the office waiting on a turn that hopefully won't come until tomorrow. It's been hot as hell so I'm not too jaded about not being outside, but I do miss feeling the Sun's warmth on my skin

Agree that the IB lifestyle isn't for everyone. At least I'm not at Lazard... those guys are getting absolutely massacred (per the usual). A friend of mine told me one of the analysts got taken out in an ambulance a couple weeks ago, after he had a panic attack from being staffed on one deal too many... You've already paid your dues though, so go ahead and enjoy all that sunlight and social life

 

[Hank Scorpio]

The amount of time I stay inside makes me feel like a vampire sometimes

But yeah, unfortunately I'm still at the office waiting on a turn that hopefully won't come until tomorrow. It's been hot as hell so I'm not too jaded about not being outside, but I do miss feeling the Sun's warmth on my skin

Agree that the IB lifestyle isn't for everyone. At least I'm not at Lazard... those guys are getting absolutely massacred (per the usual). A friend of mine told me one of the analysts got taken out in an ambulance a couple weeks ago, after he had a panic attack from being staffed on one deal too many... You've already paid your dues though, so go ahead and enjoy all that sunlight and social life

I actually know a girl who's at Lazard now. She just started in IB this Summer. Wonder if it's her

 

[Hank Scorpio]

Thread fell back a couple of pages. I'll give this a bump for those who haven't seen the thread yet.

 

[Hank Scorpio]

are you single?
loljk

Now this makes more sense

I was seeing someone from January till a few weeks ago. We met while I was working in IB. She was in a different group, but she came over as a transfer when someone took a vacation. We got close and became good friends.

When I left IB and went to PE, we saw each other a lot less because of her work schedule and me working for a different company. There were no hard feelings after the break up. We're still good friends.

When I was in IB, I dated casually, but never got into a relationship. I didn't think about being in a relationship because it would've been difficult to find a woman who would understand the demanding work schedule I had and would be able to barely see me a handful times a week. It was "easier" for me to date her, because we worked together and spent a lot of time with each other.

Honestly, it's tough meeting women who are genuine these days. After they hear about what I do, they try to jump the gun and "snag" me. IDK if they're interested because they're genuinely interested in me or if they're interested in my checkbook. Sometimes I wish I can pull a Prince Akeem and find my Lisa that way

You'd think living in NYC would introduce you to many women, but it's tough meeting a genuine, nice, understanding female these days.

 

[newmoanyuh]

Now this makes more sense

I was seeing someone from January till a few weeks ago. We met while I was working in IB. She was in a different group, but she came over as a transfer when someone took a vacation. We got close and became good friends.

When I left IB and went to PE, we saw each other a lot less because of her work schedule and me working for a different company. There were no hard feelings after the break up. We're still good friends.

When I was in IB, I dated casually, but never got into a relationship. I didn't think about being in a relationship because it would've been difficult to find a woman who would understand the demanding work schedule I had and would be able to barely see me a handful times a week. It was "easier" for me to date her, because we worked together and spent a lot of time with each other.

Honestly, it's tough meeting women who are genuine these days. After they hear about what I do, they try to jump the gun and "snag" me. IDK if they're interested because they're genuinely interested in me or if they're interested in my checkbook. Sometimes I wish I can pull a Prince Akeem and find my Lisa that way

You'd think living in NYC would introduce you to many women, but it's tough meeting a genuine, nice, understanding female these days.

so you're single

Back on subject, I'm thinking of going into IB. The problem is I'm really not that interested or passionate about anything like banking or finance |I maybe I am, and I should figure that out first but people have been telling me to go into the field since I know Chinese, Korean, French, and maybe Arabic later on... I wasn't giving it that much thought until I got offered to work for Sinopec and they would help me with an mba...

Cute story Good luck not getting trapped, it's real out here

 

[Hank Scorpio]

so you're single

Back on subject, I'm thinking of going into IB. The problem is I'm really not that interested or passionate about anything like banking or finance |I maybe I am, and I should figure that out first but people have been telling me to go into the field since I know Chinese, Korean, French, and maybe Arabic later on... I wasn't giving it that much thought until I got offered to work for Sinopec and they would help me with an mba...

Cute story Good luck not getting trapped, it's real out here

IB isn't for everyone. The financial lifestyle is very tempting to be apart of, but when you factor in the long work hours, loss of a social life, and sometimes depression for some people--It's just not worth it.

If you're not interested or passionate about banking/finance, then you're going to HATE waking up in the morning at 7am after working till 1am the night before. Or times when you're out for a friends Bon Voyage party who you won't see again for another 4 years and get called into work at 9pm on a Saturday (this actually happened to me) just to edit a small detail in a pitch book that soon turns into an all-nighter. That stuff becomes VERY unsettling and people grow frustration soon enough. The only way to get through all that stuff is if you really genuinely have a passion for what you do. If you don't, then it'll be a LONG 2 years. Or you'll probably just end up leaving in the middle of the day, because you just can't stand it anymore or got burned out. I've also seen some people lose their marriages because of IB.

Now, I've seen people stay in IB purely for the money, but those people never really last. Usually, the people who last and get far into banking are people who have a deep passionate interest in it. Am I saying everyone who's at top is passionate about IB? No, but for the most part--They are.

 

[newmoanyuh]

IB isn't for everyone. The financial lifestyle is very tempting to be apart of, but when you factor in the long work hours, loss of a social life, and sometimes depression for some people--It's just not worth it.

If you're not interested or passionate about banking/finance, then you're going to HATE waking up in the morning at 7am after working till 1am the night before. Or times when you're out for a friends Bon Voyage party who you won't see again for another 4 years and get called into work at 9pm on a Saturday (this actually happened to me) just to edit a small detail in a pitch book that soon turns into an all-nighter. That stuff becomes VERY unsettling and people grow frustration soon enough. The only way to get through all that stuff is if you really genuinely have a passion for what you do. If you don't, then it'll be a LONG 2 years. Or you'll probably just end up leaving in the middle of the day, because you just can't stand it anymore or got burned out. I've also seen some people lose their marriages because of IB.

Now, I've seen people stay in IB purely for the money, but those people never really last. Usually, the people who last and get far into banking are people who have a deep passionate interest in it. Am I saying everyone who's at top is passionate about IB? No, but for the most part--They are.

yeaaaah, pass :x I just hate to pass up the chance on a free MBA I think I'm going to stick to translating.

Thanks, famb

 

[trunks206]

Where's the hammock district? And why the Denver Broncos?

Well done.

 

[kenn e]

i think id do well in ib, i hate going home hate most of my friends and have no problems solving problems 90 hours a week. id probably be the type to request a shower in the office so i don't have to go home. just 200k a year is a little low for selling your soul.

 

[fontaine]

are you single?
loljk

Now this makes more sense

I was seeing someone from January till a few weeks ago. We met while I was working in IB. She was in a different group, but she came over as a transfer when someone took a vacation. We got close and became good friends.

When I left IB and went to PE, we saw each other a lot less because of her work schedule and me working for a different company. There were no hard feelings after the break up. We're still good friends.

When I was in IB, I dated casually, but never got into a relationship. I didn't think about being in a relationship because it would've been difficult to find a woman who would understand the demanding work schedule I had and would be able to barely see me a handful times a week. It was "easier" for me to date her, because we worked together and spent a lot of time with each other.

Honestly, it's tough meeting women who are genuine these days. After they hear about what I do, they try to jump the gun and "snag" me. IDK if they're interested because they're genuinely interested in me or if they're interested in my checkbook. Sometimes I wish I can pull a Prince Akeem and find my Lisa that way

You'd think living in NYC would introduce you to many women, but it's tough meeting a genuine, nice, understanding female these days.

@ the yambs flocking...

it gets really real like that out here for a banker bro? i thought that was just a myth...

how do they know what you do? does it just come up in convo? or they have a roster of all PE people in their sloot-o-dex?

i'd imagine birds dont eem know what private equity is...

at least... the ones i mess with.

 

[antidope]

How helpful would having Series licenses play a role into getting into IB? I have my 7 and will get my 24 in August. I got a friend that works for GS who says that next to no one there has them, but I cant see how they wouldnt help bolster my resume some. I work in brokerage at the moment, not an advisor but in the home office of the company.

 

[Hank Scorpio]

@ the yambs flocking...

it gets really real like that out here for a banker bro? i thought that was just a myth...

how do they know what you do? does it just come up in convo? or they have a roster of all PE people in their sloot-o-dex?

i'd imagine birds dont eem know what private equity is...

at least... the ones i mess with.

There are some women who purposely wait for bankers at bars near IB offices during happy hours just to meet them. Also, it's pretty easy to spot bankers with the kind of attire they have on. But then again, not everyone is flashy. In the top banks--usually they are. It's a cultural thing.

I'll tell you guys though--I've had the pleasure of being around the company of some of the most beautiful women NYC has to offer. I'm not gonna lie and say I didn't oblige to their advances, but I always knew why they were interested in me. In the beginning it used to bother me, but then I realized--I should take advantage the same way they are. They don't need to know that I'm just gonna smash and leave. The same way they feel that I don't need to know that they after my money.

It's a sick game, but what can you do? Just hope one day you meet someone special enough who doesn't fall under those circumstances.

How helpful would having Series licenses play a role into getting into IB? I have my 7 and will get my 24 in August. I got a friend that works for GS who says that next to no one there has them, but I cant see how they wouldnt help bolster my resume some. I work in brokerage at the moment, not an advisor but in the home office of the company.

Why don't you have the 63 if you have a 7? I mean, it helps a little, because it shows you have initiative and some experience, but most banks require you got those licenses the first month of employment.

You don't even need 7 and 24 in banking. You need 79 and 63.

 

[johnnyredstorm]

ayo globex if bankers have groupies i'm gonna need to chill with you in my finest of linens.

 

[nocomment6]

so you're single

Back on subject, I'm thinking of going into IB. The problem is I'm really not that interested or passionate about anything like banking or finance |I maybe I am, and I should figure that out first but people have been telling me to go into the field since I know Chinese, Korean, French, and maybe Arabic later on... I wasn't giving it that much thought until I got offered to work for Sinopec and they would help me with an mba...

Cute story Good luck not getting trapped, it's real out here

That kind of knowledge of languages is amazing! Good stuff.

My question is kind of related to this. I myself also speak multiple languages and am interested in international relations/business, communication and so on. Do such banks have separate departments for such issues? What about PE firms?

BTW does anyone care at all if you only speak english?