Comparing apples and oranges
Ok, so I really am going in circles and cannot make a decision with my offers. They are so different that I am having trouble comparing them. The main factor for me is the exit opportunities and business school prospects. I think the problem I am having is both are great opportunities but mildly limiting in both factors (maybe not business school as much but I'm not sure). The offers are....
Capital Markets- Fixed Income (think Lehman/Merrill)
Public Finance Investment Banking (think Goldman/Morgan)
Any advice you can give is greatly greatly appreciated. I'm at a loss right now because neither are ideal options given my interests, but how do they compare as far as business school admission and exit opportunities into PE/HF?
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New groups
I personally know people who
I personally know people who have jumped from Public Finance Banking to PE shops of all sizes (Megafunds to little Mid-Market Funds), Top MBA programs, and IBD groups.
Top MBA programs will actually see you as a different Investment Banking candidate, since you are "helping society"...a good statement of intent goes a long way. Of course you need all the other prerequisites like solid GMAT scores, and awesome reccomendations..but that should not be a problem.
IBD and PE shops will not be the easiest jump, but if you make sure you know your valuation, accounting, and modelling like your abc's and have people from within pushing you, it should not be a problem at all.
I would not go with capital markets, but thats just because its not a personal interest of mine. I am sure there are many people who would take fixed income. Do you have any more details about placement within the Fixed Income Capital Markets (specific group maybe)?
The other nerveracking thing
The other nerveracking thing about the capital markets offer is that it is technically generalist even though i spent the summer on a fixed income trading desk. So while I will likely be in a similar role and in FID, it is not gauranteed.
The other thing I cant seem to get a firm grasp on with public finance banking is if the bonus is essentially the same at the analyst level as those in IBD/Capital Markets. It definately makes sense that earnings potential is less at the higher levels, but they maintain that bonuses will be identical to IBD per say as an analyst, does anyone know if this is generally true?
As far as the capital
As far as the capital markets position goes, you might want to call up the people you worked with (whichever specific group you liked the most) and talk to them about specifically joining their group. It might work, and it can't possibly hurt.
Public Finance Banking bonuses in my experiences have been just a little under what IBD bonuses are. It makes sense because the higher bonus in IBD is just a reflection of the risk associated with corporate debt and equity as opposed to a municipal credit backed by the state or municipal governments. Regardless, you will break 100K no problem. No clue where the Capital Markets bonus would fall, but I would imagine it would be higher than the Public Finance Banking one.
Are there any analysts or associates who you are really close with at the different banks? They would be the best ones to talk to you about comp.