Top LO questions
Not very familiar with the LO industry, so I have a few questions that I hope someone can shed some light on.
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Is it possible to get a spot as an analyst (not associate) at a top LO without an MBA? Where could a CFA and ~3-5 years as an analyst at a no-name mid-sized L/S SM get you in the LO world?
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Are analysts only hired to start on MBA graduation timelines, or is recruiting also done throughout the year?
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I understand that seats at top firms are highly coveted and in high demand + low supply. What about seats at other large LOs that are not viewed in the same light?
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Do LOs usually have internal recruiting/biz dev teams, or do they use HHs?
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Is pay at these firms a lot more set, a la banking pay, considering the economics of these firms? If so, what is a typical comp progression?
Would appreciate any responses, thanks for the help.
Very high level response here and happy to dive in further if you have more questions. Work currently at one of Cap/Well/T. Rowe/Fido/D&C.
1. Yes, but you need a lot of experience. Most non-MBA Analysts have ~7-15 years on sell-side (usually at least Director level) and CFA. CFA + 7 years of experience at L/S SM could get you an interview, but ~3-5 is likely too little experience for the Analyst role in general (at least where I work)
2. My firm has annual recruiting of post-MBA but will look externally as needs arise.
3. These seats (in general) are still highly coveted. Places like MFS, BlackRock, Harris, Amundi, Franklin Templeton, Brown Advisory, Ivey, Guggenheim, and many many many others are not as competitive, but if it's a well known shop, getting the role still remains not easy.
4. My company has an internal recruiting team and *generally* does not use headhunters (this is something I'm less certain about).
5. At my firm, the first ~3 years are pretty straightforward. By year 5 it's fairly all over the place. This is something that's been discussed more across this forum and varies significantly between firms
Appreciate the answers, clears some things up for sure. Maybe you just haven't updated, but based on ur badge it looks like you're an associate. Is the plan for you to go to grad school and then try to get a new offer at the same firm/other LO or do they sponsor grad school and have you come back when you are done? What do you think would be the best pathway towards one of those seats (even if not immediately) coming from a HF background w/ CFA (assuming no desire to go for an MBA)? Sorry for all the questions, hope not too interrogative lol.
I work at an AM in a junior role, but one that's much smaller than the ones listed above.
My company has a soft-push out for associates after 3-4 years, after which it is suggested to get an MBA. Some people return and others don't. Associates make it to analyst w/o an MBA, but the ones who have done it are absolute beasts, had other experience pre associate program, are now very young PMs, etc. In general, turnover amongst analysts is incredibly low (and there's a hesitancy to add more mouths to feed given industry tailwinds).
Idk if that's at all helpful, but that's been my experience
Hey all good (and hopefully my response is not too late considering all of the discussion here!). I am indeed an associate: for most associates at the listed firms (except for maybe one of the companies) it's expected that you will go do an MBA and re-recruit. It is easier to re-recruit where you already work, but you're usually expected to join again. Internal promotion is rare and usually takes 6-7 yoe total, between sell side and work at the company. Other thing I'll related to awareness of this process as an associate: despite not having gone through the process myself, my company makes the process for promotion and MBA + re-recruiting fairly clear for associates who are looking to stay in the space as many are good and could make great analysts, but just need more experience, more refined process, etc.
Sponsorship is possible at my firm, but usually this is for more tenured associates in other roles that support investments and you're usually expected to work while getting the MBA. Have no clue what other firms offer related to sponsorship.
I think for you right now, without getting an MBA, the best course of action is to continue to develop your track record and refine your investment process. This will come out in interviews and from other people when you apply.
Can you please elaborate on how the first 3 years progress at the associate and analyst levels? Want to get a sense of if it makes sense to go for an associate seat and risk not getting converted to analyst vs staying on sellside a bit longer then coming in as an analyst instead. Thanks!
It varies a lot by firm (ranging from impossible to convert to relatively easy) so it’s up to you to research each program.
If you’re still new to SS (~2 years), it would probably be a good opportunity to make the switch to a LO for 3 years or so and and look to do an MBA which would set you up for an analyst seat (relative to 7 years of SS).
FWIW OP, I turned down some of Cap/Wellington/Fido/T.Rowe/D&C because of location and took a seat at one of the firms mentioned in #3 because of location and the pay. The firm listed in #3 pays more than D&C, T. Rowe, and Fidelity at the associate level.
Out of curiosity, where did you end up locationally (T1 or T2 city, or somewhere else?) I'll admit the combo of location and pay being materially lower than competitors is notable for at least one, if not multiple of the listed companies
Just curious do you remember what comp levels were like at the T1 firms you turned down?
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