Hi there, so I’ve just moved to the Vals and business modelling team at a B4 and I was wondering whether someone could help me to design my strategy for the upcoming years (2-3) and how to get the max profit from this experience.
Brief background: 3 years of experience in B4 (other area). Knowledge gained so far: industry research, basic modelling, debt instruments, and writing skills. CFA L3 candidate. Strong language skills. 26y old.
I’m not planning to become a partner in B4 and I also believe Vals&BM becomes somehow repetitive at some point (confirmed by friends working there), so I was wondering what realistic exit opportunities I could have after 2-3 years and what I should do during this period in order to maximize my chances.
My top priorities would be the following (highest to lowest): PE or AM, ER, Investment analyst within industry (something like Corp development, or the like), Valuations team at an IB (similar to the one HL has).
I see a bit of a disadvantage that if I do 3 years in this gig I will have by then 6 yrs of experience (29y), so I am not sure what kind of position (if any) would be ok for my experience.
On the positive side, I believe I have a strong network in my location and I will be able to increase it for the next years. Also, I’ve been top performer at my previous job and I did not really like it, so I hope that I will also perform successfully in this gig given my motivation.
Main questions:
- Am I missing anything in terms of potential V&BM exit opps? Am I realistic or too optimistic?
- What kind of activities/approach should I follow as of now in order to maximize my chances in 2-3 years? More networking? Specializing in any specific industry?
Thanks!!
Without knowing anything else about your background, I would say these options in order of realism are:
Valuation team at IB - very possible. However, it suffers from most of the downsides you've already listed. Corporate development - very possible Regular IB - possible, if you network well ER - possible AM - unlikely PE - very, very unlikely
I'm not sure why you feel obligated to do three years in your current role. Your upside is almost certainly higher in any of the previous careers you listed, especially since you said you are not interested in following the big 4 partner track.
You need to figure out what you want to be doing five years from now. I mean what do you REALLY want to be doing, not just what has a nice paycheck or sounds like fun. Because this will be a career decision which you cannot easily change.
Do you want to work in financial services in private markets? IB and/or PE is your goal. Work in public markets? AM or IB is your goal. Work inside a company? corporate finance or corporate dev is your goal. Something else? Then you need to do a lot of thinking.
You shouldn't feel obliged to stay with your firm, especially if you know it's a dead end careerwise. A MBA could help you transition to wherever you want to go. You need to figure out where you want to go first though.
First thing, thanks very much for your input, it's really appreciated!!
I completely agree with your answer, and this is actually what I've been thinking. I believe that as of now I should focus on what I really want to do, based on my personal priorities / profile.
Even though I'm young and that the smell of money still attracts me, in a long-term view I'd say that the most important things to me will be: 1) Decent-life style (time to see my family and no weekends) 2) Satisfying job (in terms of both stimulating and with an impact) 3) Money (not to buy Ferraris, but at least to have a second home and provide my family with financial security) 4) Prestige
I also agree with your input on my chances in getting a gig in the above. I think I'll discard PE and AM because it does not make sense to put that much effort in something that is unlikely to happen, and most likely I will end up discarding ER and Valuations IB as well. Regular IB has never been an option at this stage (it was in the past though).
This would leave me with corporate finance role within industry (such as Corp Dev). If I eventually decide to target this career path, what do you think should be next steps? I would definitely say improving my modelling skills and becoming an expert of the industry are a must, but other than that?
Reg your comment about why I should stick 3 years in my new gig, well is not that I feel obligated but it's more that I'm switching areas so I feel I need to be 2-3 years to really profit from it. If I change in 1 year time, I will have 3 years of not directly related experience + only 1 year as a Vals analyst. Don't you think is better to wait a bit?
Cheers.
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