Hello all, I am an analyst at one of the MBB firms, with admission to a two MBA programs (LBS and INSEAD) and with a confirmed sponsorship to do the MBA of my choice (fully paid, so it will cost me nothing to get the degree). I have always had an interest in doing an MBA, but, to be frank, I would not pay for one if I had to (way too expensive in my honest opinion).I also have an offer to join a private equity firm that I really like (got into the process through a headhunter and managed to secure an offer). They want me to join them right away. They do not really value the MBA and they wouldn't pay for it. Also, as I said, I’d not pay for it myself and the salary at the PE doesn't really pay enough to compensate for the MBA costs- even assuming I manage to defer the job offer to do the MBA.My long-term objective is to work in private equity (not necessarily in this firm), but I feel that the MBA and the extra years at MBB will be useful for my career, while also being interesting, formative and exciting (FYI: I've to work for 2 years post-MBA to pay off the MBA sponsorship).My only fear is to miss out on a good opportunity and potentially miss the PE train. I know that 2 years post-MBA my chances at PE would be (much) more limited (simply as I’d enter as a senior associate/vp/etc and it’s more difficult to join at that level without prior PE experience).I'd appreciate your help on this. My questions are:(i) Would the MBA and extra experience in MBB add much to my cv (it seems that I can get the position I want with the cv I've at the moment…but not sure if I'm having a very short term perspective here)(ii) Is my assessment re: PE opportunities at a more senior level right, especially coming from consulting?Thanks for your help!

If you want to get into PE why wouldn't you just take the job now? These opportunities are incredibly rare ... You like the company, PE is what you want to do plus you dont really value the MBA so why the hesitation? Aren't you trying to over-optimize? Chance of an offer at a higher level post MBA into PE is totally hypothetical ....

alexandermeerkat, thanks for your note.I do value the MBA, but wouldn't pay for it, which is different. I'd happily get a (top) MBA under my belt and believe I'd enjoy the experience, especially as it would be pretty much pressure free.While it is true that I've a strong interest in PE and it's where I see myself in the future, I do not feel I need to join a PE firm now, if you get what I mean. I'm young and have a very long career ahead of me. I'm not trying to over-optimize either. In fact, I'm aware that post-MBA/ post-MBB I would not likely be able to get a much better role in PE (unless I make it to partner at MBB and make a lateral move, which is very, very unlikely).My true concern is whether the value of the MBA + extra years at MBB are worth the wait/gamble. And if the PE opportunity is really now or never.Thanks,Jeff

The PE role isnt now or never. More to the point I would question what you are not being told in this matter (i.e. what is it about the role which led this PE firm to offer you over more suitable IBD experienced candidates).I have a sneaking suspicion that the role has been over-sold to you and you will find yourself sorely disappointed in it - and lose out of the MBA sponsorship in the process.My advice - go do the MBA. If you have what it takes to get into PE now, that will be more so post MBA and another 2 years at MBB under your belt, and you will have the track record and qualification to fall back on in any circumstances.

Thanks marsday, perhaps you're right. I think I got the role because I've a "unique" (?) regional experience (it's a PE firm with a focus on particular frontier markets) and because I work in the Corporate Finance arm of the said MBB firm (and also have some IBD internship experience under my belt). But I'm sure there're plenty of qualified IBD candidates out there, so perhaps there's something funny about the role.Maybe I'm taking a safe/conservative view here, but I am inclined towards doing the MBA, stay at MBB for a few years and try my luck at PE again....

I agree. Get a bigger boat before you leave safe harbours.

Jeff you probably would know that getting into PE directly after an MBA is not common. Nevertheless, LBS is a terrific name to have if you want to work in PE in future. It will open doors to many other career options that you might not have thought of.I have spoken to many ex MBB consultants who got an MBA. All said that they didn't learn very much from the MBA. But it was a terrific experience (some say they had their time of their life). I would say go for the MBA and have some fun!

I second Mars' advice. Just make sure that any work you do post-MBA is relevant for the PE sector.

Jeff,Never mind all that - congrats on not only getting an MBB role (something which in this forum there are literally thousands of threads from young grads wanting to know what they need to do to get in there) and also getting an offer from a PE which we all know is a v competitive environment. I agree with Mars on the PE side of things.For what its worth, I would suggest going for the MBA and doing the 2 years MBB stint thereafter. That is not going to hurt you at all, you are going to have a great qualification from a great Uni on your belt (without the £££ weight on your shoulders!!!) and then going to MBB which again is great for your CV.At the end of the MBB period you can then decide. With your background you'll have a lot of choices.

Happy to be the one giving the contrary advice here. Just because you get a PE offer now does not mean you'll be able to get one in future, no matter how good you are - markets can change, luck can change etc. As you say yourself the reason you are getting this offer now is due to some quite specific expertise and match with the PE company. This won't necessarily be the case post-MBA. If you truly do want to do PE then I would take the chance now. However, the fact that you are umming and erring though suggests maybe you should do the MBA?

Hi all, thanks for your comments.It seems that there is a consensus. As I said, it is the option that seems to make the most sense to me right now. I'd be sad to say no to the PE firm, but I love marsday's analogy ("Get a bigger boat before you leave safe harbours").It might sound a bit cynical, but I know that the learning aspect of top MBA programs is overestimated (I have had quite a lot of conversation colleagues who are MBA graduates...). Not a lot of people seem to learn that much (at least compared to what you pay, of course), but you get a good qualification in your cv, meet some interesting and smart people and have some fun for a year or two. Thanks a lot for your input and for helping me out here. Let me know if I can be of any assistance (debunk some myths about MBB?).

Let me ask you this - are you happy at MBB? The issue with these types of companies (speaking from my own experience) is that they are brilliant for one's career, dreadful for one's personal life... and on balance at the time I decided I'd rather have a gf and sleep in my own bed most nights (nay, even actually finish work while the sun is still shining!) than have the world's best CV and an extra £10K a year...

That's a really good question and something I think about quite often.All in all, I'm relatively happy at MBB. For now. I'm young and don't have a family. I know I'd not like to do this for a long period of time, but I can definitely take it for a few years. I've had a chance to work in extremely interesting projects, with pretty smart people (both colleagues and clients) in really hot topics that I found challenging and interesting. I also worked in a few projects that were totally dreadful, but they've been the minority, so it all depends on what you work on. Also, at difficult times (e.g. working on a Saturday night) it helps to think about it as an investment that would eventually pay off.Anyway, although I'm relatively happy with my life at MBB now, I know I will be quite happy when I leave too.Sadly, I was told that life at this PE firm wouldn't be any better, specially during DD time.

Can I ask which PE you got an offer from. Is it one of the big PE's- KKR, Carlyle, Bain Capital or Warburg Pincus? I'd like to move to a PE as well!

Yes, it is one of them. You can probably even guess which one quite easily, I'd say!

In that case, if I were you I'd skip business school and join the PE. Most MBAs would die to get into ANY PE. To get into one of the PEs I mentioned you must be creme de la creme.Spending four years to get to your dream job seems quite a lot to me. You can always go back to business school- either full time or part-time: executive MBA, INSEAD's new MSc in Finance (part time), LBS MiF (part time). Sorry for backtracking. I have always wanted to work for one these firms. And the prestige working for any of these PE firms is way beyond MBB+ MBA (you already have MBB)

I would actually challenge what you just said. The fact that you and I want to get into PE doesn't mean that most MBAs would like to work in PE too. It would probably be fair to say that the most popular destination for MBAs is consulting and specifically MBB as it opens quite some doors in a wide range of sectors.I'd not compare PE and MBB in terms of prestige. It is not an apples to apples comparison. More competitive, yes (also a matter of size). More prestigious, I do not know. You can get quite a lot of jobs after MBB and not so many after PE (outside PE, of course)Also, based on my experience and the people I know, not a lot of MBAs would like to/enjoy working in PE (unless they come from an IB background probably). Not sure what's the percentage, but probably below 20-25% (especially now that PE salaries are a fraction of what they were in the past).Just my opinion.But I do get your point anyway.

Jeff if the offer is from Bain Capital, KKR or the like then take the offer. They will be both a secure environment and about as compelling addition to your CV as you'll ever get short of being annointed the second coming of JC.Your life wont be much easier than MBB all the time, but for the most part you will have a better work/life balance at any of these places.Maybe you'll even meet Mitt Romney in a corridor one day..

hahaha.I'm confused now. I guess I don't yet see a huge difference between the big PE shops and the smaller ones. My reasons for joining a PE firm are mostly about the work itself and not so much about the prestige, pay and so on.Marsday, would you kindly care to develop why you've changed your perspective after knowing that it was a big PE firm? Is this all about security and prestige?

I reckon VC/PE is the most popular choice for MBAs. Most popular destination for MBAs is consulting or IBD just because there are not enough opportunities at PE. Even amongst top tier business school (CBS, Wharton etc) less than 5% of the class get into a VC/PE. Here's an interesting article on PE and MBA:http://poetsandquants.com/2013/02/19/does-an-mba-pay-in-private-equity/I have told you my preference. I think an MBA will be a sidestep for you. But in either case (MBA or no MBA), you can't go wrong. My view is that an MBA is best for those who either have a specific motive (want to move to an industry/geography) or don't know what to do in their career. The others don't really need an MBA. My final advice is take the offer (opportunities such as these don't come everyday no matter how brilliant you are!)

[quote]hahaha.I'm confused now. I guess I don't yet see a huge difference between the big PE shops and the smaller ones. My reasons for joining a PE firm are mostly about the work itself and not so much about the prestige, pay and so on.Marsday, would you kindly care to develop why you've changed your perspective after knowing that it was a big PE firm? Is this all about security and prestige?[/quote]Yes of course. PE is - frankly - an idiosyncratic industry (if you want to call it that). It lacks structure, even significant trends. Unlike almost any other sector (with the exception of maybe hi-tec and semiconductors) it is diligent about being as opaque as possible to those 'outside'. Look closely and what the 'sector' really is many small funds coalescing not through shared experience, or mutual identification as a profession but rather as a social fabric. Stability, especially in smaller funds, is hard to come by. Most of them are dead ends to be frank - full of gradually greying bankers waiting for a carry which may not even come. MBB occupy a 'space' of their own in consulting - as I have said on here before they cannot really be compared to other consulting firms, and to put them in the same bracket as the big consulting firms is really comparing two separate and distinct markets. The same applies here. I would not expect someone from MBB to look at exits thinking about whether there will be doors open for the post MBB role, rather they should be thinking about what they will create - same applies here. Firms like MBB, KKR etc ultimately dont give you a career they teach you that you create value around yourself - you see this in the way alumni operate elsewhere. Its in the cut of the jib, the clarity of purpose. I changed my opinion solely because of the tier which offered you the position - if this had been a midcap PE fund with an interest in TMT I would have said MBA. What it comes down to - and Im just assuming things here - is whether you want to be great, or staggeringly great. For no other reason than you can turn around and say I got to MBB, I got to KKR. I got everywhere I want to get to - next mountain please and dont spare the altitude.

@I- Thanks for your advice.And thanks for sharing that interesting article. That article doesn't really apply to my case as the MBA would cost me nothing. But I do get the gist. An MBA is certainly not a pre-requisite in PE and it is probably not very useful in the industry. It is quite possible that I will not get an offer like this again. On the other hand, I have a chance to do an MBA for free in return for a few extra years at MBB. That's what I know. I will think about it, but will welcome more comments!

[quote]What it comes down to - and Im just assuming things here - is whether you want to be great, or staggeringly great. For no other reason than you can turn around and say I got to MBB, I got to KKR. I got everywhere I want to get to - next mountain please and dont spare the altitude. [/quote]Thanks for a brilliant reply. I have to sleep on this because it is actually a really profound piece of advice. Someone I admire told me something similar when I was thinking about whether to join MBB or not.Just one final question. What's the value of a (free?) MBA here? Even if I do it, I'm not sure it will help me much in my career, regardless of where it takes me. I'd appreciate your views on this, even if it's only from a purely theoretical perspective.Much appreciated.

Well the value of an MBA doesn't rest on whether or how much you paid for it, well not to most people anyway. The genius of the MBA curriculum is not that you learn much more than you already knew, it's the business schools fuelling a need to have the MBA to announce you are 'one of us'. It's like an old school tie, or membership fo the right club. Probably already too many in that club though, and diminishing advantages to membership. There are some MBA curricula which I do think are very good - ones with a good entrepreneurial slant, and they can be a great way to get to a business in a box type position, good for being able to crank out business plans and revenue forecasts for an investor while you think about how to get your new app business from zero to hero in a week. And if you decide to spend 5 years at KKR and pick up the phone to MBB what do you think they are going to say to you? Go get your MBA and come back?No, they will say you've not been at the club for 5 years, nice to see you again.

I completely agree! Solid advice

I am glad to see people are now agreeing with me on this! If you get an offer from a top tier PE company and want to work in PE then for god's sake take it! A bird in the hand and all that ... maybe consultants will at least understand the concept of DCF ...

WOW!! Think we need to develop a "trending topics" widget for the forum. 26 comments within the space of an afternoon, way to go everyone!;-)Tony

I don't remember anybody on my cohort expressing a desire to get into PE but that was back in 1997. Most people wanted to get into (or go back to) consultancy or senior roles in industry. Quite a few wanted to set up their own businesses and have done so successfully.To be honest, my MBA has helped me into a few roles but I have never really used most of the stuff I learnt. It did, however, give me a greater understanding of business in general. And I earn more money.

Dude just go to the PE fund. You've been to MBB and done it; if you leave in good standing you can generally return (assuming you ever want to).You will make more money in PE, you like the topic, and the lifestyle will be pretty similar with less travel. No brainer.

Wow, having read it through even I have been converted by the preacher!Yes the PE offer is looking like the best option - Mars response explains it very well. It would be good if Coolio or BEP chipped in too

I have an MBA from Insead and I can only say this: STAY WITH YOUR MBB COMPANY, don't be a fool to leave!

I shall be delighted to offer sage advice tomorrow, along with parsley, rosemary and thyme. I am currently quite pished having drunk quite a few bottles of top quality vino collapso to celebrate a new role with a day rate that has made me blush....Hic!

Having read through the thread, I have to say that Mars has covered this off completely...1. This is a no-lose, win/win scenario. Whether you take the sultry PHD brunette Miss Brazil to the New Years Party, or the long-legged blonde professor Miss Sweden, either way, you're in a good place right now and your future looks pretty rosy too. Amazingly if you do take Miss Brazil, Miss Sweden will be content to wait, and vice versa (which is definitely where the analogy falls down...!)2.. If this was a run-of the-mill PE firm then I'd say stay with MBB and do the MBA for free. The value of an MBA is in three areas - 10-20% academic teaching, 30- 40 learning from other (hopefully brilliant) students and 30- 40% alumni/brand/club membership. Yes, the academic aspect is important, but you'll learn much much more from working with brilliant, international open-minded people from other industries and you're buying into a club. That's why an MBA from North Surrey is a waste of time (no brilliant colleagues and a club no ones heard of) while INSEAD, HBS, LBS etc are worth every penny as long as you come in the top 20% of your year.3. However, the PE houses you mention are not run of the mill. They are in my mind equal to the brand value of the MBB (Bain Capital came out of Bain Consulting for example) with the added value that they actually buy businesses and increase their value using MBB techniques. They don't just sit on the sidelines like the MBB taking day rates.But frankly - you can't lose - there is no mutual exclusion in any of these options.

Yeah, this is all very good advice. Because consultancy, even at MBB level, is (in comparison and in my personal opinion) so fluffy and lacking in rigour, and not to mention because the pay is so much less, HR depts practically cream their pants when somebody from a decent bank / PE applies. MBB looks UP to PE funds and banks like Goldman, not the other way around. Have you ever seen a partner from a top consultancy firm talking to somebody senior from a bank? It is a sight to behold (and I say that as a consultancy partner myself, albeit not a MBB one). The consultancy partner typically isn't used to eating humble pie... nay, usually actually takes for granted that he is the "top dog" and holds all the power in the room... yet even he will struggle to maintain an aura of gravitas and authority when speaking to people who earn about 20 times as much as he does. It can be hilarious watching your average consultancy "senior vice president" go from superstar to pleb in 5 seconds flat when he realises he's talking to a hedge fund manager whose yacht is bigger than the partner's house.Follow the money, young dude, follow the money. That's what work is all about.

I agree with BEP. An MBA is a nice-to-have but experience with a decent PE firm will be far better value.I have seen consultants reduced to ash just from a Goldman partner stare. A bit like Paddington Bear with a God-like attitude. These guys live for their work -they never stop.

[quote]I shall be delighted to offer sage advice tomorrow, along with parsley, rosemary and thyme. I am currently quite pished having drunk quite a few bottles of top quality vino collapso to celebrate a new role with a day rate that has made me blush....Hic![/quote]£250 a day as a PMO analyst!?!;p

Agree to the closing phrase."Pain is temporary...glory is forever!"