Biotech Silo?

Team — Currently at an MM bank TMT team but got an offer from better brand (CVP / JPM / MS) for their Healthcare team, most likely focus on Biopharma. Considering that in LT I am interested in public equity, especially for TMT and not having an Biochem BG providing edges in Biotech investing, I was wondering how PM & Senior Analysts (especially for MM given SM are more focused on PE bg) weight bank brand vs. industry cov. in recruiting decisions, and whether niche industry groups (FIG/Biopharma/O&G/REGL) can silo those from IBs.

 

Based on the insights from Wall Street Oasis, when considering a move from a middle-market (MM) bank in a TMT team to a more prestigious firm like CVP, JPM, or MS in their Healthcare team, several factors should be weighed:

  1. Brand Prestige vs. Industry Coverage: The brand of the bank can significantly impact future opportunities, especially in public equity roles. Prestigious banks often provide a broader network and more robust resume credibility. However, if your long-term interest lies specifically in TMT public equity, moving to a biopharma-focused role might not align perfectly with your career goals despite the brand upgrade.

  2. Specialization Concerns: Transitioning to a niche industry like biopharma, especially without a background in biochemistry, might limit your flexibility to move back to TMT or switch to other industries later. Niche groups often develop deep expertise that doesn't always translate easily to other sectors.

  3. Recruitment Considerations in Asset Management: Portfolio Managers and Senior Analysts in asset management value industry expertise highly, particularly in sectors like biopharma where specialized knowledge can provide a competitive edge. While a stronger brand name is beneficial, the relevance of your industry experience to the specific focus of the fund is crucial.

  4. Long-Term Career Path: Consider how this move aligns with your long-term career aspirations. If staying within TMT or moving to a generalist role in public equity is the goal, ensure that this transition won’t pigeonhole you into healthcare indefinitely, unless you are open to developing a new career path in this sector.

  5. Exit Opportunities: While prestigious banks generally offer better exit opportunities, the specificity of the biopharma sector might limit exits to related fields. Contrast this with a TMT background, which could be more versatile in the tech-heavy landscape of modern investment roles.

In summary, while the allure of a top-tier bank is strong, it's crucial to consider how the specific industry focus aligns with your long-term career goals in public equity, especially within TMT. Balancing the prestige of the bank with the relevance of the industry coverage will be key in making a decision that best suits your career aspirations.

Sources: Career Bankers: Coverage vs M&A, Lazard v. Morgan Stanley Post-MBA, How do you get offers and not know which one to take?, Post MBA IB: deciding which group?, https://www.wallstreetoasis.com/forum/investment-banking/qa-senior-banker?customgpt=1

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Interested bump. But I would likely take it in your shoes. I have a hitch bias though so

 

Is this actually true? I see people go to the Buyside in healthcare all the time. Yes in biotech too

 

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