PE Secondary Advisory vs Model Internal Audit
For context, I have background in external financial audit and some credit risk modelling experience (IFRS 9, IRB) back in my home country. I went to the UK to study at a non-target school and found the capital market really interesting (and tough to get into, especially with my background).
6 months after graduation, I have turned down some offers related to the risk modelling space to attempt breaking into IB/PE. I currently have 2 below offers in each space and would love to hear what you think about each, but mostly the PE Secondary Advisory offer since I'm new at it. I gotta give my decision in a few days.
Offer 1: Model Risk Internal Audit with top 4 UK retail & commercial bank. Good compensation (£55k) & benefits. Happy to sponsor visa.
Offer 2: PE Secondary Advisory Intern with a micro firm (<10 people). 3 months internship (£24k pro-rata) with consideration for full-time offer if good performance. Only do LP-led deals. Work will be 50% deal execution and 50% sales, with some expectation of weekend hours. However, they told me work will be mainly remote, which makes me a bit doubtful whether this is a valid job (but again, I'm new to this market so please do correct me if I'm wrong). The interview process is also a bit unconventional, with 4 rounds of only 30 minutes each, starting from Founding Partner > Senior VP > VP > Associate. The firm is very small so no visa sponsorship.
Thank you all for reading!
Comp is incredibly low for the secondaries advisory, how reputable is the firm?
The firm was founded back in 2010. Partners and VPs went to some reputable schools (Bayes, UCL, Imperial...). From the interview it seems like they are working on a deal of about £300m, which is on the higher end of the deals they normally do.
If there's anything else I can add please let me know.
Based on the most helpful WSO content, here's a detailed analysis of your two offers, focusing particularly on the PE Secondary Advisory offer:
Offer 1: Model Risk Internal Audit with a Top 4 UK Retail & Commercial Bank - Compensation and Benefits: £55k along with good benefits. This is a solid offer financially, especially considering the stability that comes with working for a large, established bank. - Visa Sponsorship: This is a significant advantage if you require a visa to work in the UK, as it provides job security and peace of mind regarding your legal status in the country. - Work Nature: Model Risk Internal Audit will likely involve a lot of compliance and risk management tasks. Given your background in external financial audit and credit risk modeling, this role would be a natural fit and could leverage your existing skills effectively.
Offer 2: PE Secondary Advisory Intern with a Micro Firm - Compensation: £24k pro-rata for a 3-month internship. This is considerably lower than the first offer, but typical for intern positions in smaller firms. - Job Structure: The role involves 50% deal execution and 50% sales, indicating a dynamic work environment with a variety of tasks. The expectation of weekend hours suggests a demanding role, which is common in the PE industry. - Remote Work Concerns: The predominantly remote work setup could be a red flag or simply a modern, flexible work arrangement. It's crucial to verify the legitimacy of the firm, perhaps by researching their past deals, reputation in the industry, or connecting with past employees. - Visa Sponsorship: Lack of visa sponsorship could be a significant drawback if you require a visa to stay in the UK. - Interview Process: The quick succession of interviews with high-level executives could indicate the firm's lean operations and decision-making speed, which is typical for smaller, agile companies.
Focus on PE Secondary Advisory Offer: Given your interest in capital markets and breaking into IB/PE, the PE Secondary Advisory role offers a more direct path into the industry, despite its initial lower compensation and lack of visa sponsorship. The experience in deal execution and sales within PE could be invaluable and provide a strong foundation for a career in investment banking or private equity, especially if you can convert the internship into a full-time role.
However, the decision should also consider long-term career goals, financial stability, and personal circumstances, especially regarding visa requirements. If the PE role's lack of visa sponsorship is a dealbreaker, the safer choice might be the internal audit position, which also offers a respectable career path with good compensation.
In conclusion, if breaking into PE is your ultimate goal and you can manage the short-term financial and visa uncertainties, the PE Secondary Advisory role could be the right choice. Otherwise, the internal audit position offers a more stable and immediate path, especially if you need visa sponsorship.
Sources: Q&A: From Big4 Audit -> Big4 Advisory -> MBA -> AM Portfolio Manager, PWC Forensic Advisory vs Deloitte Risk Advisory vs EY Risk Advisory (HONG KONG) - Chances on getting into Management Consulting, PJT Secondary Advisory Super Day (Modeling Test), Which Offer Should I Take? (Analyst at Valuation & Advisory Services VS. Capital Markets)
Very difficult to get into IB/PE starting in an internal audit team in a commercial bank, but the only way you can do that is lateral from audit to a credit risk role in their leveraged finance, infrastructure finance, or real estate finance group (which I assume they have), and from the credit risk role into a debt originations team. Nothing is impossible but short of going into an LBS or Insead afterward and then getting an Associate role somewhere it is difficult.
Secondaries role comes with a lot of problems (the very low pay for a start) but at least you get "on the job" experience per se and can talk to recruiters saying what you do. The degrees the team has is less important than their track record and prior firms they've worked for.
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