ECM Associate: can't exit or get any offers
I'm an ECM Associate and not even exaggerating when I say this but since I started as an Analyst here 4/5 years ago, I've developed no skills.. I have no accounting and financial analysis expertise, I don't know how to build financial models or value companies (other than what I've learned online), I don't know how to build an IM, I don't even know what an M&A transaction process looks like etc.
I genuinely have no skills as ECM is the easiest job, all we do is work with companies to build an equity story to raise capital, liaise with lawyers on boring regulatory stuff like drafting a prospectus and then we go out finding potential shareholders to invest in the company.. it's basically just a sales role.
I've decided I hate ECM and want to move into either an M&A role, buyside opportunity or even try the other side of the capital markets world leveraged finance. I've literally applied to over 100 roles (I've kept a spreadsheet this isn't me exaggerating literally over 100) in the last 2 years and got rejected by them all.
I hate my role, I'm bored of it, I'm not learning anything and feel trapped because I can't get an offer anywhere. I've even applied for M&A at lower tier banks but they still reject me because of my skill set. Any advice?
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This is a tough one, I started in ECM as an analyst and moved to coverage a year later because of this very reason. From what i've seen, you can do 2 things:
1. Target IR or corporate development roles, try to spin relevant experience to include analysis / modeling work, do a lot of self study on modeling, companies/industries your interested in moving to. Also network heavily to actually get interviews and avoid people throwing out your resume cause they deem your role non-technical; seen many successful moves to IR and corp. dev. from ECM/DCM/LevFin over the years
2. Try to lateral into a coverage group; issue is you might be too senior and if you lateral to another bank you might lose a year
Honestly ECM is not bad cause pay is great and hours are a lot better than coverage. You can technically stick it out for a while and collect checks up to like Director if you are just decent.
I actually thought ECM is a solid group for people who want to be career bankers? Could you not go to a growth equity type role?
ECM in most places are not even considered bankers as they are in Markets division...
You know even for coverage groups if you never close any M&A deal or doesn't even go to bake-offs that often but just work on IPOs, you pretty much are an ECM banker, except maybe some bullshit analysis and modeling done upfront in the pitch or during the IPO process. When I applied for M&A roles I didn't even get to compete with Big 4 Financial DD folks.
Source: myself.
Move to the strongest coverage group at your bank/sector you think will make your lateral out easiest. Do not take vp promo. Spend ~1yr in coverage. Then attempt to move banks as a mid-level associate.
Unfortunately my bank doesn't allow for lateral positions, I have to simply apply for them online like an external applicant would.
You must overlap with coverage teams - network your way into a seat. The online app sounds like a formality.
MBA could be a good option
Best call is an MBA. Alternatively, you could join a startup and then pivot to VC. But do serious DD on the startup, treat it as an investment but you’re using your time not money
OP, could you walk through what exactly your ECM role entails? What are the seniors (VP+) responsible for, and what work do they do? Any details you can provide, how your (and your seniors') work moves the football in helping clients place equity, and a description of any specific knowledge / relationship edge gained through your experience would be great.
FWIW, if you want to move to coverage IB and do any meaningful modeling, choose a group / industry that mainly does public-to-public work. If you work for a group or industry that transacts small private companies, you may not be doing much modeling in coverage either. The "math" around pitching small private companies is mostly benchmarking against comps (as you have no financials), which anyone can figure out in a few months. My last stint was like this, and it was awful. I got sick of cranking on bake-offs and fireside chat decks made completely of new-creates for sponsor-backed companies in hopes of winning a mandate - just to have the sponsor decide to slow-play or not sell at all. Forget that.
Anyway, I'm seriously giving markets roles a look, especially if the lifestyle is better. I do need either intellectual challenge or relationship-building as part of any role though. Just trying to figure out whether ECM offers both, especially as one gets more senior. Thanks in advance for your insight.
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