| Umm...absolutely, and especially if you plan on going | | | | think these guys like to hire from? HBS of course! |
| into finance. And here's why. The education you get | | | | This is not to say that finance whizzes from Chicago |
| at HBS or Stanford isn't necessarily all that much | | | | or MIT aren't qualified. It's just that these firms get |
| better than what a top 50 business school offers in | | | | so many qualified candidates, why not just continue |
| terms of academics. However, the difference | | | | hiring from your alma mater so you can keep the |
| between a Harvard and University of Minnesota | | | | company within the "family." Ok so, some firms are |
| (Carlson) can be compared to...perhaps, a high end | | | | more extreme than others, but my point is, this type |
| country club in the Northeast vs. a luxury sports club | | | | of stuff happens. So be aware of it. When you are |
| in Manhattan. Both clubs have nice facilities and both | | | | applying to a top MBA school, ask about access to |
| clubs offer the same functional purpose. However, | | | | the most prestigious employers. You WILL find |
| the difference here is access. The nice country club | | | | differences between the top 10, top 5, and even top |
| may only accept members with net worth over $5M, | | | | 3 schools. Here are some examples: |
| whereas the luxury city sports club will take anyone | | | | A certain west coast mutual fund: ALL |
| who can pay the monthly $200 fee. People value | | | | employees have MBAs from Stanford or Harvard |
| scarcity. That's why going to a top MBA school is so | | | | (and each summer they ONLY recruit from Stanford |
| valuable. Prestige is driven primarily by scarcity value, | | | | or Harvard for interns) |
| and scarcity value is driven by low acceptance rates. | | | | Certain NYC hedge funds: Preference for HBS |
| Even amongst the top three business schools, HBS | | | | and Stanford students even over Wharton (shocking |
| and Stanford students most certainly think of | | | | but true) |
| themselves as "better" than Wharton students, even | | | | Estee Lauder: Not even a financial firm, but they |
| though Wharton is obviously an amazing school. The | | | | only recruit from Wharton and HBS |
| curve in perceived value increases exponentially as | | | | The list goes on... |
| you move up in rank from one top MBA school to | | | | Take a look at the following pdf, which lays out the |
| another. | | | | universities attended by private equity professionals |
| Hey, I agree that this type of behavior can make | | | | at Blackstone, Carlyle, Bain Capital, Silverlake Partners, |
| your stomach turn at times. But, the reason I'm | | | | Warburg Pincus and Providence Equity Partners. No |
| pointing this out, is because this sentiment does drive | | | | surprise eh? |
| hiring behavior by some of the most respected firms | | | | Going to a top school gives you access to the top |
| on Wall Street and Silicon Valley. Have you noticed | | | | jobs in finance. The pecking order on Wall Street is |
| that nearly all partners at venture capital firms have | | | | unobvious to outsiders, but to business school grads |
| MBA degrees from either Stanford or Harvard? Have | | | | working in finance, the differences between top MBA |
| you noticed that pretty much all the partners at the | | | | schools are very much apparent (perhaps |
| top private equity firms such as TPG, Blackstone, and | | | | over-exaggerated, but perception becomes reality). |
| Bain Capital are HBS alums? Which schools do you | | | | |