Should Bankers Jump to Corporate M&A or PE? What Shifting Career Choices Mean for Employers

For decades, private equity was the presumed next step for ambitious investment bankers. The lure of carried interest, brand cachet and perceived “lighter” hours made the transition feel almost automatic. But in 2025–26, the path is no longer so linear and current market trends help explain why.

1. Why Private Equity Is Losing Some Shine

Private equity remains attractive, but increasingly nuanced. Hiring rebounded strongly in 2025 as deal activity returned, particularly in value creation, portfolio operations and exit preparation. Compensation at junior levels remains compelling, and carried interest continues to offer long-term upside for those who stay the course.

However, the lifestyle trade-off has narrowed:

• Fundraising cycles have lengthened, exits are more complex, and portfolio oversight has intensified.
• Compensation growth has been steady rather than explosive, with base pay increases more modest than in prior cycles.
• The reality of hours — particularly during live deals, fundraising or exits — often remains closer to investment banking than many candidates expect.

At the same time, capital has become increasingly concentrated among large funds, limiting opportunities at smaller or mid-market firms and making competition for top platforms fiercer. For some bankers, the prestige of PE alone is no longer enough to justify the personal cost.

2. The Growing Appeal of Corporate M&A

Corporate M&A teams are gaining renewed attention as dealmaking returns, particularly in the US and UK. While overall deal volumes have been uneven, deal values have increased, driven by larger, more strategic transactions.

What makes corporate M&A attractive in the current market?

• Strategic proximity: professionals are closer to decision-making, shaping long-term growth rather than focusing solely on execution.
• Broader exposure: roles often span strategy, integration, capital allocation and portfolio management.
• More predictable rhythms: while still intense around live transactions, workloads are generally more stable than in banking or PE.

In addition, the increasing use of AI and data analytics in M&A — from diligence to valuation — is changing the skillset required. Bankers with strong analytical and technological fluency are finding corporate roles particularly compelling as organisations build more sophisticated in-house capabilities.

3. What Hiring Trends Are Signalling

The broader finance labour market remains competitive:

• Investment banks continue to fight aggressively for talent, with faster hiring timelines and multiple offers becoming common.
• Private capital firms expect to maintain or modestly increase headcount, despite a more selective fundraising environment.
• Candidates increasingly prioritise transparency — around pay, progression and expectations — over headline compensation alone.

Across sectors, professionals are also paying closer attention to culture, leadership credibility and long-term career optionality. Slow or opaque recruitment processes are now a genuine deterrent in a market where good candidates have choices.

4. What This Means for Employers

For private equity firms:

• Compensation is no longer enough. Firms need clearer promotion pathways, more credible wellbeing commitments and a compelling narrative around value creation.
• Demonstrating how technology, data and operational expertise are embedded in the investment model is increasingly important.

For corporates:

• There is a real opportunity to position M&A as a strategic leadership track, not a back-office function.
• Clear articulation of post-deal career paths — into strategy, operations or general management — is a powerful draw.

For investment banks:

• The rebound in M&A presents an opportunity, but retention will depend on flexibility, transparency and development — not just bonuses.

Conclusion

The traditional pipeline from investment banking to private equity is no longer automatic. Corporate M&A has emerged as a credible alternative, offering strategic influence, skill diversification and a different balance between intensity and sustainability.

For employers, the message is clear: while pay still matters, culture, clarity and purpose are now equally decisive. Firms that recognise and adapt to these shifting priorities will be best placed to attract and retain the next generation of finance leaders.

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