Capital Markets exit opps?
What are the exit opps like from a loan or corporates origination group at a top-5 bank?
Any possibility for a move to the buy side, or will I have to go back to b-school and hope to break in after a stint as an associate (assuming M&A after MBA).
bump
Loan/Corporate Originiations would fall under the Commercial Banking umbrella.
From what I've seen, it is very possible to get into Corporate Banking or even DCM post-MBA.
any idea for a capital markets origination desk, say at citi or deutsche bank?
OP - you likely won't be able to exit to buy side positions without an MBA unless you are able to transition into a leveraged finance group that does LBO execution. The sourcing of these types of products typically includes work in conjunction with industry groups and is primarily a role consisting of market update pages and pitching.
I actually just re-read this post and this makes a hell of a lot more sense now than it did earlier for some reason haha...thanks for the post. Essentially what you're saying is corp origination (within a specific "industry group") could lead to a corp banking exit or a move into DCM / LevFin without an MBA, but if one were to make the jump to DCM, they could then use that to get to buy side. But at that point, that's a good two years atleast right? Also, would you mind expanding on the actual tasks/ what skills would be attained in capital markets origination. thanks
I worked in investment grade origination and went direct to PE. But I will say it is very, very, very rare and very, very, very difficult to exit directly to a HF/PE firm. Exits will be lateral within the bank (syndicate, sales, corporate banking, LevFin, maybe industry coverage/M&A, credit research or trading), and to client treasury groups.
can i PM you with regards to an entry level investment grade origination position I'm considering / interviewing for?
You have my permission
No, you're not reading/understanding correctly -- DCM should not be looked at as a "path to the buyside." It's possible but it's not a well-trodden path.
ECM is more niche than other IBD groups. You don't gain the modeling skill set that other IBD groups have so your exit opps will be more limited and different. A few options include moving to a coverage group for your 3rd year or moving to syndicate if you are looking for something different within capital markets. My understanding is that DCM is slightly better in terms of exit opps but not by much.
If your goal is moving to the buy-side, you'd probably be looking at 2 years in capital markets and then a 3rd year in a coverage group. I think it's tough to get into buy-side after grad school unless that's what you were doing beforehand. Another thing to consider is that even in a coverage banking group, your skill set begins to change after the analyst level, so associates on up have more of a "sell-side" skill set that is less transferable to the buy-side, unlike the modeling skills you gain as an analyst. The time to make the shift is after your time as an analyst.
So hypothetically, you would probably do 2 years in capital markets, 1 year in coverage, then buy-side.
Exit Opps for Capital Markets? (Originally Posted: 09/06/2015)
I hear a lot about how the day-to-day work and skills in many capital markets groups (especially if you're not doing the modeling) differs from those of traditional IBD roles. How does this affect exit opps after 2 years?
Would being in a group within capital markets but does the modeling have essentially the same opportunities afterwards as IBD?
Structured and Leveraged Finance do modeling, but exits will be more niche for Structured Finance. Lev Fin is very bank dependent.
Thanks for the help. Niche in what way?
Totally group and firm dependent (i.e. LevFin at some banks does modeling and at others does not, etc.). I would say in general the exit after 2 years is most commonly to a banking group (for a 3rd yr analyst role) or to corp. dev at a F500 type of company. Also have a lot more people that tend to stay in capital markets and choose to become an associate.
Capital markets career path/exit ops (Originally Posted: 02/01/2016)
Hi I'm a college freshman economics major, and from what I've been reading capital markets seems like a good fit for my career. The problem is based off my research, on this forum and others places, is that I can't seem to get a clear understanding on the different career paths and what each level does, responsibility wise.
From what I can tell the path is the same as ibd Analyst --> Associate --> VP --> MD you get the picture.
So my question is basically what do they do at each level, and what are the exit ops.
Thanks for any reply.
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Everyone on here will dog on capital markets because its M&A or bust.
Now its true at capital markets at the junior level makes you very difficult to hire for a PE gig unless you keep up with the technical but I've also seen 3rd years from capital markets go to hedge funds.
Do what you like and where you will learn. If you are smart, someone will hire you but I would say the path, particularly to the buyside is less obvious and well trodden than the usual IBD -> PE route
So it seems that its stay in capital markets or move to an industry group within ibd, with a few less to HF/PE. Capital Markets is what seems most appealing to me, but that just right now, and I'm only a freshman so I've got time. thanks for the reply.
,
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Exit opportunities for BB non-industry group? (Capital markets, financing, etc.) (Originally Posted: 08/15/2013)
Hi everybody -
I just finished an internship with a BB (think JPM, MS, or GS) in a pretty specific group (think something along the lines of interest rate/FX/equity derivatives).
A little bit of background about me - parents work in finance, though on the industry side and I go to HYPS. I'm interested in going into the industry as well, at some point - dream is to work as a C-level exec in some kind of a company in the future (maybe retail, real estate, or tech? not too sure). I also plan on getting an MBA.
In any case, I have a return offer from the BB I worked at. The work was great, but I'm not sure if I would like such a specific, niche field to be the first thing I do. I feel like it may just limit me in the future - I was thinking about PE in a few years just to get some operations experience (along with sharpening my finance acumen), but I'm worried that those firms really only recruit on the industry/M&A side. In the future, I do want to work in corporate strategy for an F500 and hopefully work my way up - should I still take this offer?
I was thinking about taking this offer and then applying 2+2 or something and hoping that an MBA might give me a broader perspective?
What do you guys think?
So you liked the group that sounds like capital markets? But you also want to do PE? But you also want to do Corporate Strategy? But you also want to be a c-level exec in maybe retail, real estate, or tech? But you also want to get your MBA?
Do you have other offers? Take the offer. 2+2 makes sense for you since you can determine what you want to do and how you want to get there.
My group had two interns. I also specified it down to the 3 banks lol. Rather be over-cautious than not.
But you're not really getting my point - corporate strategy/PE in the shorter term, C-level exec in the long term. Thought that was decently clear? Apologies if not. Would appreciate some actual advice, though.
The central question here is what the exit opportunities are for this particular field (pretty clear from my post - derivatives at MS/JPM/GS). Are they in line with more traditional business careers in industry?
The ceo of GS and the next ceo of GS both came from trading desks, if that offers any insight to how to get to be a C-level exec.
You can try as hard as you like to plan out your life and career this way, but it's a pretty pointless exercise. Things change. You will change and so will your interests. It sounds like you'd be a better fit for management consulting, and if not consulting then IB. You could always go straight into corporate strategy as well. Take your offer and interview around for these positions. See what offers you get and then decide.
Thanks for the advice, moneymogul. Am I still around to shop around if I've already taken the offer?
Additionally, I'm still wondering - what are the exit opportunities for jobs like this?
Exit Ops from Capital Markets at a BB into HF/PE? (Originally Posted: 11/03/2009)
working at a BB in DCM, was wondering what the exit opps were into a HF/PE shop eventually?
anyone know about ecm as well?
The exit opps are unfortunately not really comparable to regular IBD. You will be largely limited to capital markets roles wherever you go.
I do know that SAC has a Syndicate desk that strictly monitors offerings that come out into the market. Probably more likely to see HF opportunities than PE given the lack of modeling in Capital Markets.
You might have some HF opportunities, but DontMakeMeShortYou is right, not really comparable to IBD. You would also be a good candidate for coverage positions at a place like Bloomberg.
Exit Ops for Capital Markets (Originally Posted: 11/27/2009)
I know this topic has been explored in the past before, but wanted to hear from actual full-time bankers (preferably in Capital Markets, or those who have close friends in Capital Markets roles) what the exit ops for capital markets are.
From what I've read, I've heard that exit ops are to B-School or Investor Relations.
What about to IBD or S&T? How exactly would one make such a move?
These are at GS and MS. Exit ops are fine - some go into IBD, some into S&T, some to top business schools (HBS, Sloan, Wharton), some to HFs. My friend from MIT who worked in ECM and did a lot of IPO work this past year is even being recruited by PE and VC.
Is this another person who has an offer at UBS DCM. The boards have been invaded with DCM and general CM questions just as they are giving out offers later than other banks.
Exit Options for Citi Capital Markets (Originally Posted: 11/15/2007)
Just got an offer from Citi Capital Markets. But somehow, feeling really depressed given what's going on with Citi. Is it a good place to start my career now? What group should I choose if I decide to take the offer? Anyone care to comment?
Congratulations! imo, I think that's a really interesting place to work. I wouldn't worry about Citi's standing right now. It was a crisis- horrible things happen, etc. But Citi is just too big and powerful not to fully recover.
Citi is much more competitive in DCM than ECM, there's an influstructure group that sounds cool, Lev Fin is more banking if that's what you're going for. Best of luck!
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