M&A vs Private Equity Careers: Which Path Is Right for You?
- City Investment Training
- Dec 5
- 4 min read
If you’re deciding between a career in Mergers & Acquisitions (M&A) and Private Equity (PE), you are choosing between advising on deals and owning the companies behind those deals. Both paths offer excellent compensation, steep learning curves, and demanding hours — but the nature of the work and long-term career upside are very different.
This guide breaks down the core differences so you can make an informed decision about which path is right for you.
What’s the Difference Between M&A and Private Equity?
M&A investment banking is an advisory career. Bankers support clients through buying or selling companies, helping with valuation, negotiations, due diligence, and executing deals.
Private equity is an investing career. PE professionals buy companies, help improve them over several years, and then sell them for profit.
In simple terms:
M&A = Advise on deals
Private Equity = Own the companies being bought and sold
What M&A Bankers Actually Do
M&A bankers sit on the sell-side and advise corporates and private equity firms on transactions. Day-to-day work includes:
Building financial models (DCF, comps, LBOs, accretion/dilution)
Creating pitchbooks and marketing materials
Running competitive sale processes
Managing due diligence between buyers, sellers, and lawyers
Supporting deal negotiation and execution
The M&A Career Path
A structured ladder with regular promotion cycles:
Analyst → Associate → VP → Director → Managing Director
Analysts and associates handle modelling and execution, while MDs focus on relationships and deal origination.
Why Students Choose M&A
Fast-paced learning
World-class technical training
Broad exit opportunities
Predictable career structure
Strong compensation growth
What Private Equity Professionals Do?
Private equity professionals work on the buy-side. They invest pooled capital into companies, improve those businesses, and eventually sell them.
Typical Responsibilities
Reviewing investment opportunities
Building and reviewing LBO models
Leading areas of due diligence
Working with management teams post-investment
Monitoring financial and operational performance
Preparing companies for exit
The Private Equity Career Path
A flatter structure with fewer senior seats:
Associate → Senior Associate → VP/Principal → Partner
Why Students Choose PE?
You are an investor, not an advisor
More strategic and operational involvement
Ability to influence a company’s direction
Long-term wealth creation through carried interest
Pathway into principal investing roles
Side-by-Side Comparison: M&A vs Private Equity
Dimension | M&A Investment Banking | Private Equity |
Core Activity | Advising on M&A deals | Buying and owning companies |
Role Type | Advisor | Principal investor |
Career Ladder | Analyst → Associate → VP → Director → MD | Associate → Senior Associate → VP/Principal → Partner |
Skills Developed | Valuation, presentations, deal execution | LBO modelling, due diligence, value creation |
Hours | 70–90 per week during deals | 60–80 per week |
Short-Term Pay | High salary and bonuses | Similar or higher at top funds |
Long-Term Upside | High, but typically below PE | Highest in finance due to carry |
Exit Opportunities | PE, hedge funds, corporates, VC | Other funds, direct investing, portfolio roles |
Hiring Competitiveness | Very competitive | Extremely competitive |
Is M&A a Good Path Into Private Equity?
Yes — M&A is the single most reliable route into private equity.
Most top buy-side firms prefer candidates who have:
Live deal experience
Strong modelling foundations
Exposure to sponsors (private equity clients)
A track record of performing under pressure
This is why the typical pathway is:
Investment Banking (M&A or LevFin) → Private Equity Associate
M&A gives you the exact skills private equity funds need from junior talent.
Salary and Compensation: M&A vs Private Equity
Compensation varies by geography and firm size, but here are general ranges:
M&A Investment Banking
Analyst: £80K–£120K all-in
Associate: £140K–£200K
VP: £250K–£350K
Director/MD: £400K–£1M+ depending on deal flow
Private Equity
Associate: £120K–£200K+ (mid-market) / £200K–£300K+ (megafunds)
Senior Associate / VP: £300K–£600K+
Partner: Seven figures + carried interest
Carry (a share of fund profits) is the main differentiator. Successful partners in PE often earn significantly more than banking MDs due to the upside from multiple fund cycles.
If you want, I can add versions for London, New York, Dubai, Singapore, or Hong Kong with local currency and GEO keywords.
M&A vs Private Equity Careers in London
London is one of the world’s most competitive PE markets. Most candidates follow:
Bulge Bracket M&A → Mega-Fund or Mid-Market PE
Typical compensation in London:
M&A Analysts: £80K–£120K
PE Associates: £180K–£300K+
PE Partners: Often £1M+ including carry
The competition for roles is intense and recruiting happens very early — sometimes within 12–18 months of starting your IB role.
Which Career Is Right for You?
Choose M&A if you want:
A structured training environment
Deep technical skills
A wide range of exit opportunities
Fast-paced deal execution work
Visible career progression
Choose Private Equity if you want:
To own and influence companies
Deeper involvement in strategy and operations
Long-term wealth creation
More responsibility earlier
A career in principal investing
Both paths are excellent — the question is whether you prefer executing transactions (M&A) or making investment decisions (PE).
Final Thoughts
At City Investment Training, we prepare students for both M&A and private equity roles through:
Real investment banking modelling training
Live deal simulation frameworks
AI-powered CV and interview preparation
Coaching for on-cycle and off-cycle recruiting
Mentoring from former bankers and private equity professionals
Whether your goal is a top-tier M&A internship or a private equity associate role, our programmes give you the skills and confidence to break into the most competitive areas of high finance.
Do you have what it takes to break into banking? 👉 https://www.cityinvestmenttraining.com/full-time-analyst Downlaod the full comparison between M&A versus PE here.
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