Desperately need help - do I go from a top firm to a startup in a more prestigious role before B-School?
I’ve been working at a top 3 asset manager by AUM for exactly the last three years within fixed income. This was my first job out of college, where I graduated from a semi/non-target in the Northeast with a 3.9 GPA. My job title is “fixed income strategist” and we are technically in the portfolio management group, though we are more client PMs than anything, helping clients allocate to fixed income investments. We also write a lot of thought leadership and do the equivalent of consulting to large institutions and central banks.
I have always wanted to do something more research/PM focused, where I can actually dive into individual securities and make decisions on them. I consider myself to be analytical above all else and don’t like the client aspect of my current role. I’m also generally unhappy with how mundane a lot of tasks are, and how little latitude I have in innovating. I received an offer from a thematic ETF startup (firm right now is the 2 cofounders) that grew from seed with one product, to a handful of products with $100-200mm AUM in less than 2 years. They are also hiring a second employee who would focus on marketing, while my job would focus on research to identify stocks with high growth potential to fit into future themes.
I would be taking a 20k paycut in base salary initially, and my bonus in the near term would probably evaporate from 40-50k to near-0. However, I think that I would really enjoy the work, and would get to do a little bit of everything as I help oversee the company’s growth. To me this role is really entrepreneurial which is what I’ve wanted since I graduated. At the same time, I know that I want to apply to B-school in 2021 for 2022 admission, and don’t know how this could fit in with my broader profile. Normally, I think a research role would be a fine transition, but the fact that this is a startup with a handful of people might muddle things. This firm has no brand, whereas the company I’ve been at for three years is well regarded everywhere. Essentially, I’d be trading off higher pay, better reputation, and more security for lower pay, a better title on paper, and something more entrepreneurial.
I probably have to accept the offer this week, so any feedback would be tremendously appreciated. I’ve applied to over 100 jobs in finance, and this is pretty much the only one where I’ve gotten an interview let alone an offer. Other fact about me is that I am taking CFA Level III in December and was on the board of a nonprofit from Feb 2019 - Feb 2020
Bump. Probably need to accept the startup offer soon so any advice would be great
While b-schools do care about the name brand of applicants firms, they also really care about career progression. If this new role shows career growth, leadership, organization, and all the other good things b-schools want, it shouldn't prevent you from taking it.
Well my first role would have a really good brand name. I don't know if they would care that I'm going in without a brand name, but I do have that first name to fall back on. In terms of growth and leadership, I would be reporting to the CIO, and would be in charge of most research activities early on, whereas there isn't a ton of room for growth where I am currently.
One thing to keep in mind is that you'd basically have 1 year at the new firm when you're applying. This means you likely won't have a ton of experience at the new firm to reflect on, and you also will be in a somewhat awkward position of asking your still-new employer for a letter of recommendation (unless you have other recommenders in mind).
I'd think hard about what you want to do post-MBA when looking at this role. If your goal is to be at a startup, an MBA doesn't necessarily make sense.
All that said, I'm a big believer in doing something that will make you happy, as long as you're financially comfortable. This is a tough time in your career to forego earnings/savings, especially if you're considering getting your MBA, but if you feel certain about your career interests, go for it.
I was initially thinking this would be a clear "yes" (e.g., thought you meant go from MBB or something to a unicorn in a cool role), but in this case I'd say "it depends". You're at BLK, Vanguard, or SSGA--if it's BLK, that's very prestigious for top b-schools and I'd say probably stay. If it's Vanguard, it'd depend. For SSGA, I'd say make the move because they place less well into top MBAs.
Even more important, though, is whether the role seems promising in terms of responsibility level, and whether it appears that the firm will survive/thrive. If it's a really cool role that shows career growth with visionary leaders, and especially if those leaders went to HSW or other MBA business schools">M7, it seems like a good option.
I worked at a top 5 asset manager for several years and worked with the ETF teams a bunch, so can relate--happy to help or share any more thoughts.
Yes, it's BLK. I think my main concern is that staying at BLK for 4.5 years, which is when I'd be applying to business school, could be looked at unfavorably since I've been in the same role for that entire time (despite getting promoted from analyst to associate earlier this year). In terms of the firm... both co-founders are ex-traders (neither went to B-school, both went to the same semi-target and are in their early 30s). I think it's cool that I'd be in a research capacity, looking into thematic ideas and looking into companies that could be included in future products.
Again my goal post business school, and post CFA, is to try and get into a portfolio management role, which looks elusive from where I am right now. My question boils down to if this experience would look favorable to the adcoms at business schools, and would help me with future employment since my current role is not really relevant to portfolio management at all. I'd be able to come up with my own title most likely, and would probably brand myself "Thematic Research Associate".
I don't necessarily think b-school will look down upon having the same job for 4.5 years, esp as you can show career progression.
The big thing will be to show how b-school will get you to your eventual goal from your start-up seat. Coming from BLK it's a pretty straight forward story as to 1) why b-school and 2) the role you want post b-school. The question is, can you sufficiently address this in your apps from the startup seat? And then your b-school elevator pitch to employers during your MBA?
The business world likes to keep things simple (firms/school/WE), too much explaining is always a risk.
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