M&A vs Private Equity: differences, salaries and how to choose

M&A and Private Equity are two of the most sought-after careers among finance students at top business schools. They are often mentioned together, sometimes confused, and yet they represent very different day-to-day realities. One is centered on advising companies through mergers and acquisitions. The other involves directly investing in companies to create value over time. Understanding these differences is essential - not only to target the right recruiters, but also to identify which environment genuinely suits your ambitions.

Read more: What is M&A?

  
M&A and Private Equity: two careers, two logics

The confusion between M&A and Private Equity stems from the fact that both worlds revolve around the same type of operations - buyouts, disposals, company mergers. But the positioning is fundamentally different.
An M&A analyst works at an investment bank. Their role is that of an advisor: they support companies or funds through transactions, prepare valuation analyses, build financial models and draft presentation materials for clients. They are paid for the quality of their advice - not for the outcomes of the deal once completed. Goldman Sachs, Lazard, Rothschild & Co, JPMorgan: these are the typical employers of an M&A profile.
A Private Equity analyst works at an investment fund. Their role is that of an investor: they identify companies to acquire, analyse their value creation potential, structure the financing of the deal and monitor the portfolio company's performance throughout the holding period. At senior levels, part of their compensation is tied to the returns generated - through carried interest. Ardian, PAI Partners, Eurazeo, KKR: these are the typical employers of a PE profile.
Day-to-day missions: what does a typical day actually look like?
It is often in the day-to-day reality that the difference is felt most clearly.
In M&A, the pace is driven by live deals. When a transaction is active, days are long - 70 to 90 hours per week during peak periods is not uncommon. The work is intense, varied and often reactive: a pitch to deliver by the next morning, a model to refine following client feedback, a due diligence to coordinate with legal and tax teams. The environment is stimulating but leaves little room for long-term planning.
In Private Equity, the rhythm is different. Investment phases - during which the fund analyses and negotiates the acquisition of a company - can be just as intense as in investment banking. But between two deals, the work is more regular: portfolio monitoring, performance analysis of held companies, investor reporting. 80-hour weeks exist, but they are less systematic than in pure M&A.

Read more: Goldman Sachs: salaries, recruitment and career

 
Salaries: M&A vs Private Equity

Both sectors rank among the most financially rewarding accessible to business school graduates. Differences relate more to the structure of compensation than to gross amounts in the early years.
In M&A, junior compensation consists of a high base salary and an annual bonus tied to the bank's and individual's performance. Based on available market data, here are the typical ranges for a first permanent position:

An M&A analyst generally earns around €80,000 per year. However, there are differences between banks and, above all, in the size of the deals on which the analyst works. In small cap, an analyst will earn around €60,000 per year, while in a large bank in large cap, this can exceed €100,000.

In Private Equity, the structure differs. Base salary and bonus for junior grades are comparable to investment banking, sometimes slightly lower in the early years. But it is carried interest - a share of the profits generated by the fund - that makes the real difference at senior levels. For an analyst or associate in PE:

Large international fund (KKR, Ardian, Apax...): between €80,000 and €120,000 per year, bonus included
French mid-cap fund: between €60,000 and €90,000 per year, bonus included
Early-stage / venture capital fund: between €50,000 and €75,000 per year, depending on fund size

Skills valued: similar profiles, but not identical

M&A and Private Equity require very similar technical skills - financial modelling, valuation analysis, understanding of financial statements, Excel proficiency. But the human and intellectual qualities valued diverge.
In M&A, the ability to produce fast and accurately under pressure is central. An M&A analyst must be able to deliver a flawless pitchbook in 48 hours, adapt in real time to a managing director's feedback and manage several files simultaneously. Reactivity, precision and stress resilience are as important as pure technical skills.
In Private Equity, the ability to exercise investor judgement takes precedence. A PE analyst must be able to assess whether a company is worth acquiring - not just model scenarios, but form a conviction and defend it. Curiosity about business models, understanding of sector dynamics and the ability to identify what genuinely creates value in a company are the distinguishing qualities.

 
Read more: What is an LBO

 
The classic trajectory: M&A first, Private Equity second

In practice, the two worlds are less opposed than they appear - they are often sequential. The most common trajectory in corporate finance consists of starting in M&A to build strong technical foundations, then joining a Private Equity fund after two to three years.
This sequence is logical: PE funds look for profiles who have already been exposed to real transactions, who master financial modelling and who understand the deal process end to end. Former M&A analysts from Goldman Sachs, Lazard or Rothschild are among the most sought-after profiles by French and European buyout funds.
The reverse path - moving from PE to investment banking - is much rarer. It happens, but remains an exception.

 
M&A or Private Equity: how to choose?

For a business school student hesitating between the two paths, a few questions can help clarify the choice.
If you are drawn to variety of topics, deal intensity and regular contact with company executives in transaction contexts, M&A is probably the better fit. It is an environment where you learn fast, gain exposure to diverse sectors and progress quickly - provided you accept the workload that comes with it.
If you are more attracted to investor logic, building conviction on a company's value and monitoring a portfolio over the long term, Private Equity is likely more aligned with your aspirations. It is an environment where depth of analysis matters as much as speed of execution, and where the decisions you make have real and lasting financial consequences.
In both cases, the two careers share one essential characteristic: they require serious, targeted preparation to navigate some of the most selective recruitment processes on the market.

 
Read more: Prepare for your finance interviews with Trainy

 
Key takeaways

M&A and Private Equity are two complementary but distinct careers. The first trains expert transaction advisors, the second investors capable of creating value over the long term. Salaries are comparable early in a career, with a structural advantage for PE over time through carried interest. The most common trajectory remains M&A first, PE second - making investment banking a natural entry point into both worlds.