Bank or Not to Bank - Help deciding offers
Hi Monkeys,
Have a dilemma here, I am an IB Associate (analyst promote) in an industry group working at a BB right now at a 2nd tier city. Have 2 offers on hand and would like your input:
1) Internal transfer to 1st tier city working in the same group (bigger everything – clients, deals, team, etc.)
2) Investment fund that covers my sector in a 2nd tier city
I’ve always wanted to work in PE though given the sector I cover, it’s not really real PE per say because this sector doesn’t do LBOs (am sure you guys can narrow it down). Following are the pros and cons I’ve listed and I would like your input into what you think would be best for my career progression. I do not have an MBA.
Option 1 – Internal Transfer (same industry group, 1st tier city)
Pros:
- Get a chance to work in a 1st tier city
- Bigger clients, bigger deals, bigger team
- More opportunities if I want to jump/lateral to a different bank and arguably to a different industry similarly to an investment firm
- Pay relative to Street
Cons:
- Mid-level Associate and still ‘stuck’ in banking
- Hours are going to be worst than what I’m experience now given 1st tier city and the nature of the group
Option 2 – Investment Fund (same sector, 2nd tier city)
Pros:
- Become more well-rounded within the industry
- Learn intricately how investment process works
- Get a chance to be on the other side investing in things rather than selling junk
- Also better hours since I would be the ‘Client’
- May eventually lead to more opportunities within investing (and potentially hedge fund opportunities?)
Cons:
- Significant pay cut compared what I’m and will be getting
- Still in a 2nd tier city, albeit a higher end one compared to where I’m located
If you're moving to a city like NYC, (more?) PE opportunities will be there. Does option 2 have a label as a 'pre' or 'post' MBA position? If it's pre then I would say don't entertain it. Considering you're at the post-MBA level, it would technically be a step backwards.
Yes, could be NYC and similar cities like London, Hong Kong, etc.
Option 2 does have a pre-and-post MBA position. You're saying I'm at the post-MBA level because I'm currently an Associate, yes? Funny thing is I have considered doing my MBA some time soon though given I came from a non-target.
What type of investment fund is it? Non-lbo investment fund kinda leaves a lot of possibilities. Growth equity? Mezz? Unlevered acquisitions? Co-investments?
Like NESCAC said, is it pre or post MBA? Do you want to or plan to get an MBA? If it's a post MBA role or a less structured fund where you could get in now and it could be a career/partner track without an MBA, and you'd be happy at that fund (or at least that space because if you stay long enough you'll get expertise in that strategy and that will be your career, most likely) and you'd be happy in that city for the longer term, consider it. If it's pre-MBA and you want to get an MBA and the fund is of some size, it may be a good idea if you don't have anything else lined up.
Also consider the cost of living and the 2nd tier city. If it's much less money than you'd make in NYC and you consider Boston to be 2nd tier, you'll feel the comp reduction because Boston isn't much less expensive than NYC (or SF). If it's Philly, Atlanta, Denver, Seattle (and the list could go on and on), you can take a fairly decent pay cut compared to NYC and still probably live better than in NYC.
Others who are closer to PE or HF recruiting can probably comment on this better than I, but if you do the associate role in NYC do you start to establish yourself as a career banker (nothing wrong with that) and make it tough to get over to the buyside if that's your definite goal? When I was younger and getting into PE, especially below the really large funds, it wasn't as structured, it wasn't necessary to do the analyst->pre MBA PE->MBA->post MBA PE associate, but it's gotten much more structured even at the MM and lower MM funds so if you don't get some buyside experience now and do an MBA, will you be making it that much more difficult to get into PE at some point? I can't really comment on HF's.
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