I've searched this many times, but can't find a good answer. I'm trying to find information on the exit opps of DCM Investment Grade.. Do most people just stay in this or use bschool to transfer to something else?
Thanks
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I guess this is why I can't find it when I search...
i'm no expert in the matter, but i know one guy who did 2 years in dcm at a bb, then transferred internally to LevFin
and is now in pe
investment grade dcm is about as vanilla as you can get... a lot of unfunded revolvers, term loans, maybe some bonds if you're lucky
my mentor this summer started out in DCM and is now an MD in FIG so it's possible to make the jump
I figured it opens some doors but it's less of a technical role bcntjerenis less modeling right?
lots of memos and internal b.s. and admin work. do not do DCM or ECM. at most banks they aren't considered banking, its recruited separately from capital markets.
DCM for 2yrs, LevFin 1 yr, then PE........sounds great. Work in IB for 3 yrs, 2 of them with decent hours and only 1yr of slave labor rather than 2yrs of complete slave labor. Plus making more money before transitioning,
Thats 30% chance of moving since everyone wants to move and about 30% chance of moving to PE after only 1 year. Most require 2 years of LevFin experience.
Total chance: 9%
Or you can just do IBD and have a flat 80% chance of moving to PE while only doing 2 years instead of 3-4 years.
DCM work sucks too, they stay till 11pm-2am sometimes.
80% chance of moving to PE?
there are 100mm pe shops out there who will "s" your "d" to get a bb banker.
Didn't seem like most of that group wanted to move.. And also those stats are obviously arbitrary
Sure they are, but 2 years + good chance of PE > 4 years with crap chance of PE.
Where the hell are you pulling your percentages from?
Well I wasn't trying to compare it to other roles, just simply asking about exit opps
Getting out of DCM , getting frustrated (Originally Posted: 10/07/2011)
I've posted a couple times here recently but am starting to get very frustrated. I'm a second-year analyst in DCM and really want to leave -- while I liked the job a lot the first 6 months, the slow market now has made me realize how little I'm learning and how BS the work I'm doing is. I desperately want to switch into a buy-side job where I feel I'm given the opportunity to think critically and maybe even put my quantitative background to use, be it at a hedge fund or traditional asset manager. I've got a math degree from an Ivy and work at a BB, so I don't feel as if I'm completely unmarketable...
Over the past couple weeks, I've reached out to ~15 hedge funds and traditional asset managers, albeit to no responses. I'm starting to get worried that I'm screwed and stuck in DCM. Can anyone offer me any advice and encouragement as to what I need to do to get out, or offer another plan? My long-term goal is to run a fund of my own. I don't care about the prestige of working at a megafund right now, I just want a job that I'll enjoy and still make $100K+ at (which would represent a pretty sizeable paycut, but I'm willing to take it to GET OUT). I love finance but feel the work I'm doing isn't adding any value and isn't helping the firm make money. I want a job where the work I do feels directly connected to making money.
You looked at transfering to another group, maybe into a coverage/industry group? I know many BBs are accomodating and it will likely lead to the learning exerpience you're looking for.
Have you tried internally transferring to a group with better exit opp's? A lot of DCM/ECM groups are not very applicable to buyside work, but if you have a math degree, one group within capital markets that seems to have better exit opp's is the convertibles team (lots of hf's do some form of convertible bond arbitrage, or at least have their roots here).
If your goal is to get out asap, though, maybe try going through headhunters or networking with alumni from your school who work on the buyside (and if you went to an Ivy, there should definitely be some). Good luck!
I don't really want to stay on the sellside much longer -- frankly, I don't like helping clients with all the bullshit they ask for. It just feels like you're running to stay in place because every other bank is doing it, so you have to also. I'm worried that if I switch to IBD where the hours are even longer and I hate it, I'll really screw myself because I'm not sure I want to stick out another year at this point.
i'll gladly take that job off your hand, as will many other monkeys around here.
If you think buyside is not going to involve answering mundane questions, making countless powerpoints and doing other boring and pointless (from your perspective) tasks, you're going to have a rude awakening.
I would finish the two years out, try and transfer to HY or LevFin, get some modeling experience and then look to leave or go to B school.
Actually, yes, I do think that. I have no desire to work in buyout-focused PE or at any type of megafund (where I feel that would be more prevalent). None of my friends who work at smaller, collegial HFs or credit funds work on "countless powerpoints" either...and even if they did, at least they get to go home at 7pm. Like I said, the work I'm doing feels so far disconnected from the actual success of the group -- a feeling I doubt is true at a 25-man fund.
But yeah....consensus is I really am screwed? What about ER? Is that a viable path into a fund or am I just going to be toiling away for less pay and equally slim exit opss?
it's really tough for a dcm guy to break into a hf. Because frankly, as bad as it sounds, hf guys do not need people with dcm backgrounds. The fundamental guys want M&A people whereas the macro guys want people with a couple years on a trading desk or some macro backgrounds, and dcm is kinda just out there.
I would say switching into ER would be a good idea if you don't like being in dcm any longer. However, for some reason those value investors still like the m&a bankers more for some reason so just don't be surprised when you go out and try to look for a job. I know for the fact my shop doesn't look at anyone outside of m&a background.
bump
DCM exit opps - Any insight? (Originally Posted: 02/20/2008)
Anyone who's been through it or working in it now have any insight?
bump
bump
None. Capital markets people are typically lifers unless they go back to school or can switch to another part of the bank.
No modeling experience.
DCM exit opps - Realistic perspective (Originally Posted: 06/28/2010)
Need some realistic perspective on the DCM exit opportunities (DCM CEE/CEEMEA). How bad it is to be in DCM rather than in M&A ? What roles could I potentially hope to assume after my 3 year stint without doing a ton of networking.
Basically, I have the option to join the DCM desk at a top BB and forgo my role in IBD at a top MM shop.
Appreciate all your comments.
I think I remember reading a post recently about guys that work in sovereign DCM moving on to global macro funds. Or at least they have a leg up. I could be wrong though.
thanks, by funds you mean AM position ? Do I stand a good chance of transferring to M&A as associate perhaps ? (this is in London).
dcm? (Originally Posted: 11/27/2007)
Can a top DCM analyst (not lev fin) at a BB expect any opportunities in PE after 2-3 years? HFs?
i'm curious about this one as well
will be tough, unless you are in a HY group and do a lot of the execution/modelling (which is mostly done by lev fin these days, but depends on bank). Some middle market PE funds historically have been willing to look outside of traditional banking for hires if the person is very good. Some HF's will definitely be possible, but once again won't be as easy as coming from banking, but definitely easier to get into than PE coming from DCM. If you want PE/HF and are in DCM, easiest way is to prepare yourself is to build an lbo model/general operating model (everything, rev build, cash flows, etc) from scratch, write up a 5-10 page investment memo. Be able to go through a 10-k, Q, and look for relevant information on companies, etc (basic stuff). Do this till you are comfortable. If the PE firms site your lack of corporate finance/modelling abilities, just tell protest till you get in the door and build a model for them in 2-3 hours (most big funds do this as an interview anyway). I came from banking, but always thought the core skills of an analyst were overrated (on the busyide, unlike in banking, the model is just a tool, almost a check on your investment thesis, even when you build out huge models). That said, I still understand why the buyside hires from banking (they don't even want to think about training you on modelling/basic corporate finance stuff, they want to think about the investment process/deal making process)
opportunities after DCM (Originally Posted: 07/27/2007)
what are your exit opps from DCM? fixed income trading? what else?
credit arm of a hedge fund, fixed income sales.
anyone else?
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