So I have heard from some that IB pays better than AM, but how big is the pay gap really? Also, what about exit opportunities? If you work at an AM without IB experience, could you still go down the corporate/F500 path? It seems like you would still gain the same skills, just on the buyside, not sell side. Is being in AM rather than IB really a lesser position?
| +204 | Associates not checking my work and getting mad at me? | 39 | 1d | |
| +143 | Is the Bay better than NYC, if so why? | 49 | 8h | |
| +140 | Why are UK, UK based and UK-countries related (India, Nigeria...) students so cringe on LinkedIn? | 56 | 3h | |
| +97 | Analysts bitching on WSO | 24 | 1d | |
| +51 | College Transitions updated 2024 IB ranking | 17 | 3h | |
| +51 | How to Not Feel Anxious About SA Internship | 17 | 4h | |
| +42 | Having trouble telling people where I work | 19 | 1d | |
| +41 | Does my budget look right? Fresh grad | 27 | 1d | |
| +39 | 5 days/wk | 19 | 1d | |
| +35 | In denial about SA 2025 Offer | 10 | 13h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
I would argue that some AM like the LO shops (Fidelity particularly) is a better gig than a lot of banking.
In terms of comps, exit opps, or just in terms of work?
Comp: Avg in banking will likely be higher than LO shops across the board, but at the respected LO shops the gap will be pretty small.
Exit Opps: Ultimately depends what you want to do. LO is the exit opp for many, but you can also switch into HF easier than banking. If you want to do PE, then the banking route is the obvious choice.
There have been many discussions about this. I would recommend searching around WSO for more info.
comp is going to be a lot better for juniors in IB, but a big PM at somewhere like fidelity makes a hell of a lot more than a big MD at any bank. Good PMs pull 8 figures easy, most MDs in IB don’t come close to that.
Lot of different roles in AM. Most on this board think about PM (start at ER and work up to PM). There's a whole different side in distribution. These guys/gals also make a very good living with a very good life style. Evolves more into a relationship mgmt role but they still have to know a lot about the markets, macro econ, etc. Just like Corp Banking becomes more of a relationship role at the higher levels.
Interesting. Could you explain the distribution roles a little more? Is this basically sales/relationship management?
Wholesaling to retail wealth managers. Institutional client management (Central Banks, Sovereign funds, endowments, pensions, family offices, etc.). Responsible for positioning your firm's AM to the institutional client. Have to have your chops to explain why X or Y to the CIO of a 2B endowment or the IM team for a state pension fund, but you also have to be a good relationship mgr (sales/service acumen). These guys make a very good living.
On the retail side (wholesaling to RIAs, wirehouses, IBDs, etc.) these guys make great money. Know several that have hit 7 figures multiple yrs. Most make around 500 once they're established. The ones that are consistently 250kish get fired.
Becoming pretty common for these distribution roles to get their CFA. Never used to be like that.
That sounds like a great role. Are you pretty much pigeonholed from there though, or can you lateral to the investment side? Also, is this a job you can get right after undergrad?
I used to work in a client role and product role at a top IM shop. The investment professionals at a director level make a very good living and probably work 50-60 hours tops, but have to travel very often. I don't recommend starting out in this job because you don't learn much at all and you quickly pigeon-hole yourself in a client role, and the other exit options are other client-facing roles at HFs/alternative shops/asset management. You have no input in the investment decisions, and mostly repeat to clients whatever message comes from your firm's portfolio managers or investment committee.
It's a role that makes sense further down the line after you have built a variety of experience, but not as a starting role. You want to start in a role that gives you as much latitude as possible in terms of career options and where you can learn a lot and build valuable skills.
Quo aut autem est odit voluptas. Voluptates qui excepturi qui facere. Dolores et ut asperiores iusto provident dolores.
Quia esse rerum at maxime impedit. Fugiat iusto vitae quia laborum. Voluptatibus voluptate officiis id nemo. Amet omnis voluptate aperiam nobis totam sunt consequuntur.
Magnam dignissimos voluptatem illo nihil enim delectus laborum. Tempore qui consequatur error et necessitatibus aliquam nemo. Inventore quos totam sed harum reprehenderit deleniti. Et aut quibusdam in id quidem aut maiores. Ullam qui voluptatem incidunt voluptates sequi culpa odio.
Alias voluptas qui optio molestiae voluptas aperiam temporibus. Quam aperiam consequatur inventore. Eius deserunt quia quo iure rerum doloribus. Molestias cumque rerum voluptatem. Molestias architecto dicta ut aut officiis hic. Omnis quam distinctio enim nobis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...