Exiting a Boutique
I'm a graduating senior from an ivy (not H/Y/P) and I landed a position at a MM boutique in Washington DC area (deal sizes around 600M to 1B but not a lot of deals every year) after my BB interviews fell through. I want to lateral to another bank like Stifel or FBR within a year - 2 years. I was wondering how feasible that would be....
Also, would there be any chance I could go to a BB (like a BAML or Citi)?
Chance? Of course there's a 'chance'.
600MM - 1Bn is decent sized transactions. Why would you want to go to Stifel? Isn't that basically TWP... which is essentially small tech deals?
Sam, a lateral transition to a more prestigious MM firm with 1-2 years experience is certainly possible. Regarding the BB, that's possible as well. However, try to maximize your deal exposure at your current firm. Also, network with other bankers. Then you can apply later to more experienced associate-level roles at other firms, or in related industries. That said, at this early point in your career, be happy you have a job, remain focused and see if you really enjoy the work.
Thanks for the replies... :)
I think in this market, taking a IB job anywhere is fine, I think BB and other prominent banks understand the situation and if a M&A boom happens within the next couple of years, you probably wont have any problem lateraling - getting experience is the most important part
I work as an analyst in a middle market boutique IBD, what are my options after 2 years? (Originally Posted: 11/08/2008)
Any ideas? Already have a grad degree.
If you already have a grad degree, shouldnt you have joined on as at least an associate?
ur exits ops are whatever you make.
maybe he did a 5 year BA/MBA program and will get promoted to associate after the 2nd year. maybe he went to a school that wasn't baller. who cares?
Exit Ops - Boutique IB (Originally Posted: 01/04/2012)
I'm in my first year at a middle market boutique and was just offered to come on for a third year. My goal is to break into private equity and am unsure whether or not it's worth it to stay for a third year. Most analysts at my firm do stay for the final year, and I'm not very confident that my experience so far would entice a PE shop to hire me. Any kind of guidance or thoughts are appreciated.
I would take the third year if you think it will strengthen your knowledge base and help you get more transaction experience. Additionally, I think it would be prudent for you to start networking and keep the option of lateraling to a bigger bank open. Getting to a bigger bank would probably get you a better network of headhunters to help you reach out to PE firms. Just a thought... you obviously have to weigh other factors like what level you would lateral in at (i.e. repeating 2nd year vs. coming in as a 3rd year... either way you're not talking about a huge issue if your plan isn't to stay at that bank as an associate, your comp would be slightly less as a 3rd year but you might have a less difficult time explaining your story during interviews).
Good advice above
Thanks guys, that's helpful.
On another note, on average, how far in advance do PE firms start their recruiting for pre-MBA associates? Just curious.
Headhunters have started contacting for positions that would begin in summer 2013... I would assume interviews will begin in late February / Early March for larger shops and decisions will be made extremely quickly at those places (i.e. most Megafunds will complete their recruiting in a week).
I know I'm asking a lot of questions here, but honestly, how many transactions can a candidate talk about given they would have only 8 or so months of experience? Assuming top shops are recruiting 1st year analysts.
It depends... I've closed 7 transactions in my 9 months at my firm (started a bit early) but these span cap mkts and advisory. It's more important to have quality experience on the transactions, even if deals haven't closed you can put potential deals on your resume and I know many people who have gotten great jobs without closing a deal prior to interviewing.
Wow, congrats that's fantastic. Thanks for the feedback, it's hard down here in the MM.
How to exit boutique IB - Advice? (Originally Posted: 11/13/2013)
Let's say someone found themselves working at a boutique IB with strong deal flow but small deal sizes. Pros - small deal teams and tons of client interaction, truly running some deals and performing associate level work. Still learn all the fundamentals of IB (financial modeling, creating presentations, etc.), but with far less "bitch work" since they pitch fewer deals. Cons - no name value, recruiters aren't going to be coming to be seeking you out.
Let's say this person has a solid resume (BB IB internship with great references and an explainable story) - good GPA at a semi-target school, lots of other relevant work/experience and interviews well.
Let's say that person wanted to move to the buy-side eventually - is that a possibility coming from this position without a rich uncle becoming an LP? Not really interested in a KKR or equally massive PE firm, but more interested in large middle market 500MM - 1 Billion under management type firm. What steps could that person take?
Would it make sense for that person to take a job a a bigger, MM IB and work there for a year or two before trying to go through PE recruitment to try to gain name-value on the resume? Or would that just be delaying something that is attainable straight from the boutique IB?
In case you didn't figure it out - someone is me and I'd love your advice on what to do. Thanks monkeys.
Go to a bigger/better IB for a couple of years.
Thanks - appreciate the advice. Could you elaborate on why? Or will PE firms simply throw out my resume if they don't recognize my firm?
Yeah, brand recognition will give you legitimacy that will allow you to work at a better/larger fund. You could also try and move straight to a lesser-known/smaller PE fund from where you are, and move to a better fund down the line from that job instead. It'd probably be easier to get a PE gig coming from a larger/more well-known bank.
I'm in a very similar position as you, though switching banks isn't really an option for me at this point.
I have gotten a small amount of traction with some lower middle market buyout and growth equity shops without any type of highly concerted effort (reached out to headhunters, let some friends know I was testing the waters, etc.). It really is an uphill battle though - you won't get past the initial screening by HH's for most of the better funds out there. If you choose not to switch banks, I would suggest networking with the lower middle market shops that don't have as formalized recruiting processes, especially younger funds, funds you have worked with in the past and funds that focus on an industry vertical where you have direct deal experience.
I'm also not in a 2 year/3 year and out program, so it's difficult (impossible) for me to go to my superiors asking for referrals. If this is a possibility for you, I honestly think it would be the best route to take.
One big thing you're missing from the equation - will your MDs make intros for you?
Thanks for all the feedback - definitely helping.
Interesting situation, similar to Duffmt6 I'd imagine. Upper level (MDs) would definitely not be willing to pull in connections for me (at least for a few years) because they want to keep me around. But the middle level (associates and VPs) would definitely be willing to vouch for me if people at the PE shop wanted references about my work quality etc.
Any tips for cold calling smaller PE shops? What level should I reach out to?
Will headhunters all pass me over - even with the BB IB internship last summer? I actually got an offer there but the entire office was cut before I started and after full-time recruitment was complete...
Also interested in this.
I've been at a small shop, that does mostly valuation work, but also occasional M&A advisory deals for nearly two years, and have started to realize that many of the things I'd been told are unlikely to happen (i.e. an increase in deal flow and more transaction focused). Thus, I'm in a similar position, and am seriously considering taking a step back, if necessary, to make the jump into something higher profile.
What do you mean by step back?
post-opp after banking at a boutique firm (Originally Posted: 11/21/2011)
hi guys,
currently i work at a small boutique bank (think ThinkEquity, Montgomery & Co) and was wondering what the opportunities were after 2 years in such a small firm. i'm debating if i should lateral into a MM firm (how hard would it be to break into this?) or 2. go the corp dev route at a F500 company with the intentions of going to B-School afterward . i hear going the corp dev route will be a bit more difficult since im not coming from a top tier MM or BB firm, is this true?
i guess ultimately, i understand opps are more limited to those who come from a boutique bank and i was wondering what routes are more attainable in comparison to others. also, in post grad, what are some ways to break into those respective industries (just network and apply through their career websites?)
any help, suggestions, or thoughts would be great! sorry for all the questions
regards
1.) You need to learn the common usage of the term "post-opp." I was expecting a juicy tranny-banker confessional and I got this shit instead.
2.) You need to learn how to tag a post. This has absolutely nothing to do with "Goldman Sachs" or "bofa" and makes absolutely NO reference to "private equity" or "venture capital fund." You're 3 for 7 on tags buddy.
3.) A lateral move to an MM or better is an incredibly reasonable and plausible move from the firms you listed (Think, Montgomery, etc.). If you are interested in continuing in banking, you'll be able to find an upward move somewhere.
4.) You're very clearly new here. Welcome to WSO!
haha, yes very true
^bunch o' weirdos in this joint
Perennial, welcome to WSO. A transfer is totally possible just keep your head up and jump on any openings in other firms.
HakunamatataGuy, is that you?MM Boutiques - Exit Opps ?? ...worth it? (Originally Posted: 10/13/2009)
I don't want to put myself through the banking hours and lifestyle, if I'm going to have no exit opps after a year or two...
Will MM boutiques with a industry focus (such as healthcare, tech, etc.) provide good opps after a year or two as an analyst? ...or will I need to switch to a BB before any legit PE/VC shops talk to me? ...the boutiques I have been talking with (i rather not say names) have raved about the responsibility and client interaction and deal flow I will get. Most of the senior level professionals seem to be traditional ex-BB VP/MD/associates with respectable top 10 MBA's. However the junior staff tend to be from less prestigious backgrounds. Deals tend to be small, but good flow, and diverse as well.
...Finally, will I be stuck in the industry of my boutique when I leave? Can I go from a tech boutique to a real estate PE? or HC boutique to a tech VC? ...I'm not expecting or looking for big names like carlyle or kkr. Just a respectable exit opps with higher/equivalent pay and less hours.
Maybe not the answer you are looking for but what other options do you have? There are not but a few jobs that one can get coming out of undergrad that will give them the opportunities that an IB stint will give, even if from a MM boutique. At the very least you would have access to senior level bankers, good deal flow, etc. Even if your prospects weren't up to par after your stint, you could always hit up one of those top 10 MBA programs you now have a connection to. That would likely put you in a better position to land a PE/VC gig assuming one wasn't available before. Good luck.
Regards
I apologize for the negativity, but I don't understand why anyone who's already made their mind up that banking isn't really for them would apply just for the exit opps. You might as well have applied for consulting, engineering or specialist corp dev roles that you'll enjoy more and still have a good shot at PE. Go for the banking gig if it's something you think you'll enjoy doing despite the hours; people talk about the money like it's a mitigating factor, but it really isn't worth it if you have absolutely no interest in what you're doing. Additionally, PE at the lower levels really isn't all that different from banking in terms of day-to-day tasks.
i didn't mean that I don't want to do banking or already decided it wasn't for me...rather I meant that like many others I don't plan to do banking for the rest of my life, thus I want to ensure that my time investment will leave me with opportunities. ...not everyone has the options that previous comments have spoken of...not everyone can get into a top mba program, good consulting/corp dev. roles are not easy to come by if you aren't a blue-chip kid.
I 100% second hellonyc's thoughts and opinions. Many people gruel themselves through 2 years of IB just to do it. Not to say we don't enjoy to an extent what we're doing, but it's not something we'd spend our lives doing as a professional. I'm in a very similar situation. Similar background, similar MM/boutique style IB.
So am I (not exactly MM but not a BB either). I understand the appeal of PE etc., but the reason I got into banking out of university was because it sounded interesting (and the money too of course). If you're already sure it's going to suck, why on earth would you take the job right out of school? There's other ways to go to PE, trust me.
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