Hi everyone! I’m trying to figure out my career direction in finance and need some advice from people who have been there. I’m torn between two main options and want to know which one would help me grow more as a finance professional. Basically, I’m wondering whether working in investment banking or going the private equity and venture capital route would be better for someone who wants to really develop their financial analysis abilities. I’m particularly interested in getting good at company valuations and doing hands-on financial modeling work. From what I understand, both paths involve working with numbers and analyzing deals, but I’m not sure which one gives you more practical experience with the technical finance stuff. I want to make sure I pick the direction that will make me strongest at investment analysis and financial evaluation. Any thoughts from people who have worked in either area? Thanks for any help you can give me.
PE route might surprise you actually. I worked VC for 3 years and the due diligence is way more comprehensive than most people think. You’re not just crunching numbers - you’re building the entire investment thesis and stress testing assumptions across multiple scenarios. Sure, IB gives you volume, but PE/VC lets you own the whole analysis process from start to finish. Plus you actually see how your models play out in real companies over time, which is invaluable learning IMO.
Both options are fantastic! Investment banking sharpens your modeling skills quickly, while private equity and venture capital allow for deeper analysis of companies. Choose what excites you most, and you’ll thrive in finance!
Timeline matters here. Investment banking gets you up to speed faster in your first 1-2 years - you’re cranking through 15-20 deals a year versus 3-5 investments in PE/VC. But PE gives you way deeper sector knowledge since you’re spending months on single deals instead of weeks. About 70% of PE folks come from IB backgrounds, so there’s definitely a natural path there. That said, if you can land direct-entry PE at a smaller fund, you’ll get amazing mentorship and real responsibility that you won’t see as a junior banker. It comes down to what you want - breadth from high deal volume or depth from owning deals end-to-end.
Honestly, go with IB if you’re starting out. You’ll get thrown into the deep end with modeling - sink or swim situation that builds technical skills fast. Did two years at a bulge bracket and the deal volume is insane. You’re constantly building models, running scenarios, getting torn apart by VPs (in a good way lol). PE/VC is great but needs that IB foundation first anyway. Banking hours are brutal but you come out with solid fundamentals. Just my 2 cents from the grind!