Hesitant to Accept Offer. Advice Needed
I currently have an offer from a private small/MM firm (~$500mm AUM) that specializes in distressed asset investing. The company typically invests in pools of non-performing/distressed commercial and residential RE loans and in troubled middle-market companies through commercial and industrial loans. As such, they focus on turnaround, restructuring, bankruptcy, and liquidation.
The office is small, less than thirty people, and I would be only one of three analysts. As a result, I would have a lot of interaction with the Director's and MD's and would have real deal experience (they have several deals in the works as we speak). The base pay is at street level, however, the bonus would be about a 1/3 of what a first year analyst at a HLHZ/Lazard/Greenhill. That being said, the firm is located in Denver so cost of living is much cheaper.
Many of the alumni and industry contacts I know have encouraged me to accept the offer but my major fear is that if I start off working in a smaller city and for a non-brand name firm that I will get pigeonholed. I am originally from NYC and want to come back and work in NYC as soon as possible. But given the current environment I have been unable to secure an offer after going through interviews with some BB's and MM firms. Should I worry about being pigeonholed? What kind of exit opportunities should I expect?
I can't really speak about your exit ops since I don't know anything about what's in Denver...
but I wouldn't really hesitate to take the offer. You are better off being pigeonholed in Denver than unemployed in NYC. You won't necessarily be able to go from your MM to a BB, but I'm sure you'll still have a good shot at getting into a NYC MM in due time. Plus, if you decide to go for an MBA, you'll have another shot to get back into NYC. Being as its such a small firm, you have the chance to make a bigger difference @ the firm, advance faster, and have a more interesting story for MBA admissions.
My advice might sound dumb, but you can always start up as an Analyst at BB afterwards. I know it sounds stupid because you will be very experienced, and life is short as they say. At least you'll be in great group (think M&A), and BB would die to have you.
In current state of the economy I am mentally preparing myself for the fact that I might be an Analyst for 4 years (2 years at MM because I am non-target & don't have solid SA lined up yet, then another 2 in BB/elite for name brand, exit ops.) My friend had an interview with analyst who did that (2 years at MM, 2 years at BB). But then again, some people do ibanking just for exit ops & networking (PE, VC, HF), then 4 years would be tough to handle.
As for pay, you already nailed that one. Living expenses in Denver are much different than NYC.
However, unless you really want to do banking for life, this sounds like a great job. Most people go to banking to eventually get a job like the one you will be getting out of undergrad. Distressed debt is one of the most active sectors, if not THE most active, and is unlikely to go away overnight. If you work two years there and network well, you should get opportunities to interview at bigger distressed shops like Oaktree.
Ignore your pay right now. Odds are 1) your COL will be 1/2 of what it would be in NYC and 2) any job is a great job right now. I bet your hours will be much better than someone at HLHZ/LAZ/Greenhill as well. Go where the fit and experience is, and it sounds like both those are at this job.
Ask yourself this: "What are my alternatives?"
If you don't have any, or they are not as good, then this should be an easy answer.
Oh I am sorry, somehow I though he talked about MM PE, my bad & nevermind. Ignore my advice. The finals have killed my reading abilities.
Does one have to do two years as an analyst before trying to move to another firm?
No thoughts?
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