Q) I am an IB professional targeting top schools for Private Equity. Which school has the best MBA curriculum for a PE career?
Atul Jose (MBA Admissions Consultant, F1GMAT): Harvard, Stanford, and Wharton lead as the favorite school for PE professionals regardless of whether the candidates are career enhancers or career switchers.
Hiring and Salary Trends for PE (Post-MBA)
The hiring trends indicate the effectiveness of the curriculum. Stanford is a clear winner, with 15% of the class hiring in the PE function and industry as well. Harvard and Wharton have merged the PE and VC data - giving us limited perspective on their individual placement trends. In terms of industry placement, Harvard has 18% of its class entering the industry, while Wharton has merged the data with other Finance sub-industries. Private Equity Associate salary would range from $150,000 to $300,000. For Senior Associates (those who are in the industry), the remuneration jumps to the $250,000-$400,000 range.
The challenges for career switching from a completely different industry don't exist for you, but a large percentage of IB professionals are targeting Private Equity roles.
Stanford MBA (PE Curriculum)
Stanford has the most exhaustive course structure covering an overview of the industry, economics of the industry, restructuring, strategy, lifecycle management of a fund, as well entrepreneurial acquisition. More specifically, Stanford MBA also offers industry-specific strategy for Biotechnology and the Healthcare industries.
Private Equity Investing Seminar (Stanford MBA): Built around the teaching notes of the late Professor Jack McDonald, who approached investing holistically instead of just fixating on one metric, the seminar offers a real-world perspective on investing from an entrepreneur and an individual’s perspective. Previous Guest speakers to the seminar include practitioners from TPG, TSG Consumer Partners, Bain Capital, SPO Partners, and Investment Group of Santa Barbara. On completion of the seminar, students earn a unique perspective of investment opportunities.
Harvard MBA (PE Curriculum)
If you go by the volume and spread of the courses, Harvard MBA has just three classroom courses - one covering Finance, the second on Real Estate, and the third in Entrepreneurial Management. However, the school is the only one to offer a field course - Private Equity projects and Ecosystem. The participation in the project allows students to mention the association with the firm in their resume. For the 2022 schedule, students will simultaneously work with 10 PE firms, giving them the closest experience of working with PE firms of different sizes and strategies. The firms include giants like Advent, Apollo, Bain Capital, and KKR. The project acts as the foundation for building relationships with the recruiters. In addition to the hands-on experience, the project covers a broad range of vertical skills in deal sourcing, capital formation, and portfolio operations.
Wharton MBA (PE Curriculum)
Wharton MBA curriculum approaches the PE function in two ways - foundation and advanced topic. The Finance of Buyout and Acquisitions dives into the fundamental tools, techniques, and best practices in the two transactions, while the advanced topics in PE cover LBO modeling, Debt Financing, Deal structuring, Sale & purchase agreements, Accounts and Commercial due diligence, and value creation.
Final Take: Stanford and Harvard should be your first and second preferences, respectively, and Wharton third. Very rarely do candidates get admission to all three schools. So to minimize risks and keep the option to accommodate a larger set of schools with PE hiring, consider Booth, Columbia, and Tuck MBA .
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