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).

 
Best Response
lasampdoria:
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.

? It's possible to get into anything after an MBA. The OP could get into Debt Capital Markets or Corporate Banking without doing the MBA, but that isn't what they asked. Those wouldn't even be exit opportunities... They would be lateral moves or potentially downgrades.

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.

[quote=Dirk Dirkenson]Shut up already. Your mindless, reflexive responses to any critical thought on this are tedious. You're also probably a woman, given the name and "xoxo" signoff, so maybe the lack of judgment is to be expected.[/quote]
 
Louboutins and Leverage:
lasampdoria:
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.

? It's possible to get into anything after an MBA. The OP could get into Debt Capital Markets or Corporate Banking without doing the MBA, but that isn't what they asked. Those wouldn't even be exit opportunities... They would be lateral moves or potentially downgrades.

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

 
mrb87:
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?

 
arner23:
mrb87:
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

 

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.

 

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.

 

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.

 

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.

Frank Sinatra - "Alcohol may be man's worst enemy, but the bible says love your enemy."
 

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?

 

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?

 

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.

 

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.

 

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