Hey Guys,
Lately I have been considering pursuing either of the routes but I would like to know more to solidify my choice.I was wondering what the true difference(s) are between investment banking and investment/Asset Management and what are the pros and cons of each.
Thanks
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Asset Management v investment banking (Originally Posted: 01/06/2014)
A front office role in a top Asset Management firm I.e PIMCO, state street, black Rock and so on or A front office role in a bb I.e Citi or bofaml... Which one is more prestigious? and what is the salaries like at asset management compared to bb fo?If I want to move to private equity which one would help more.
redacted
It really depends on you and your interests - whether you are interested in the buy side from a big bank perspective or whether you are interested in sell side transaction execution, advisory work, and experience. AM is a fine career path is if it is on interest to you and in terms of prestige, it is definitely towards the better side of the spectrum. I don't know enough to speak to bonuses, but base pay is usually similar to IB and S&T, but the hours are slightly better in AM.
Here's what I would do
1) Google "investment banking"
2) Google "Asset Management"
Investment Banking v. Investment Management (Originally Posted: 05/29/2012)
Hey guys,
I was wanting to know what are some of the big and main differences between both IB and IM/AM . Also how are the exit opportunities for each one because I would like to work in one of the industries for a few years and go back for graduate school again. My school also happens to let us choose a specific finance track and I narrowed it down between these two, in your personal opinions what would be the better track for a stable job (I am not looking for high pay but better hours, stability and a decent salary): investment management track or investment banking track?
Any help would be greatly appreciated
Thanks!
Probably IB > AM since Ibankers are more "well-rounded" (i.e., prob more extracurriculars in college, better soft skills, etc.) than AM'ers. In AM, unless you're on sales, is all about making the right call. This is especially true for buy-side AM where it doesn't matter as much that you don't have soft skills and matters more that you are making them money through your research.
Investment Banking vs. Asset Management for BSchool (Originally Posted: 10/26/2013)
Was wondering what looks best for Bschool adcoms? For ex.doing GS IB vs GSAM, would finance applicants kinda get lumped together?
If it's a matter of leadership and extracurriculars, AM obviously has more of a chance to create meaningful experiences given less facetime needed to be in the office
just wondering your opinions
they are different. is there a question?
long-term goal of most IB analysts is PE, stay in banking, corp development/finance at a large company, business school or any combination thereof.
long-term goal of those in IM would usually be to become a portfolio manager and run your own book. from junior levels there are lots of potential exits, from more senior (post-MBA) levels this is a long-term sustainable career, not really a stepping stone (unlike banking).
IBD vs Investment Management (Originally Posted: 10/22/2014)
Career path
Investment Management vs. I-Banking (Originally Posted: 02/08/2007)
Hi, I'm just curious about those who have done both or know those who have. Did they prefer one or the other and why? Thanks
IB and Investment Management...what are the differences? (Originally Posted: 12/01/2006)
I'm new to the forums, but I've already learned more in the last 2 days than I had the previous 3 months of researching regarding IB. Thank you to all who have graciously responded.
I recently laid my background and personality on the line and some respondent said I should check out Investment Management (IM), and I was wondering about that field. How is it different than IB (a pretty damn general question)in terms of: Hours? Pay? Working environment? Duties? Opportunities? Typical day? required/expected education and/or background?
I'll stop here for now.
Not really sure what you mean when you say "Asset Management". You want to be a buy-side research analyst? Given your actuarial background, you might be a better fit doing asset allocation and risk management in an asset management. Then again that defeats the purpose of going for an MBA.
IBD is only relatively easier. You can just follow the typical recruiting schedule (going to networking sessions, do on-campus interview, networking with alumni, all that stuff) and interview until you get offers. Really the focus is hashing out your "story" and why they should consider you as a long-term hire (well in reality very few will last in each class that makes it to the very top). Associate-level IBD doesn't exit to PE as easily, you can do corporate development as an exit op.
If you want to do fundamental research at Asset Management firm, that, to me, is quite difficult. First of all, your insurance policy valuation experience can be helpful for you to understand insurance sector, but that's really it. Second of all, if you want to get into the Fidelity and Wellington of the world, you will be competing with kids whose pre-MBA experience is IBD and PE. So you must crank out some killer stock pitches. Take advantage of all the resources available at your school for a career in investment management.
BB and big AM and mutual funds (like BlackRock, Fidelity, etc.) should be able to sponsor internationals, not sure about boutiques, I will let the other monkeys speak to that.
Asset Management or IBD after MBA? (Originally Posted: 02/27/2015)
Hi everyone, I am currently an actuary (ASA) level at a life insurance company working in valuation department. Will start in business school (Top 5) this fall. I have background valuing simple derivatives as well.
With my background, which field will be easier for me to break in? I almost have my heart set on IBD until I saw almost everyone saying that there is essentially no exit opps for post-MBA associates because I wanted to eventually move to PE or HF (shocker).
I have a feeling that Asset Management is a little more stable with similar pay to IBD but harder to break into (correct me if I am wrong).
Another note, I am not a citizen. Do banks (BB or boutiques) sponsor internationals? Do asset management firms sponser?
Thank you for your advice and inputs!
Investment Management or Asset Management is the management of huge portfolios of various asset classes. As an analyst you'll help identify undervalued stocks, bonds, or other asset classes that meet the minimum requirements as stated in the fund's prospectus.
So yo do alot of comps, modeling, stock valuations, with the objective of finding undervalued assets with upside potential. Less hours and exit opps are in hedge funds, mutual funds, and sales and trading.
Investment Banking is completely different. As a banker you assist companies with raising capital from the debt or equity markets (bond offerings, IPO's, convertible bonds, etc), and also provide advice and due diligence on M&A and divestiture transactions. Some banks also do a lot of trading in the equity and fixed income markets, but this is more of a secondary revenue stream, and IMO really not considered core Investment Banking.
How does Asset Management compare to IB? (Originally Posted: 11/29/2010)
In terms of job placement difficulty, hours, pay, etc? Who are the best? I always wanted to do it but never really found a way to find the experience.
Search for BlackHat's "Life at a Top Asset Manager" thread, it'll answer most of, if not all of, your questions.
Asset Management a better choice than Investment Banking? (Originally Posted: 06/14/2013)
Any Asset Management people here who could give me some insights on it, such as the nature of the work, the pay, the hours, the potential for career advancement, ect? I was looking into IB before but I've decided that I would rather pursue a career that's more intellectually stimulating and that doesn't require me to completely sacrifice my life to my job. I understand that I have to work hard and long no matter what path in finance that I decide to take and that's fine but for 100 hours a week I better be getting a blow job with my paycheck too...
Lower hours, lower base pay than IB at entry-level. That's all I can say.
this is not true.. base pay is the same in AM as IB.. guy in GSAM and GS IBD both get 70+10
Be aware that what a 'banker' does and what a first year analyst does are tow different things.
And to this "Some banks also do a lot of trading in the equity and fixed income markets, but this is more of a secondary revenue stream,". Trading has been the primary revenue generator for the last few years.
True it's been a primary revenue stream, but isn't considered core IB. Core IB would be your Debt and Equity UW.
Not if you are referring to all-in comp. GSAM is not the general case either.
To a college kid - the BB role is more prestigious To anyone in high finance - the AM role is more prestigious To everyone else on the street will think you work at a retail bank so it doesn't matter
Hi Igynuo,
I am an actuarial analyst in a large insurer and I am thinking about a similar path as you into transitioning into Asset Management with an MBA in the long-run. I was just wondering if you think your actuarial background helped to get you into a top 5 business school or not?
Thanks!
the difference is at an IB they squeeze the life out of you and toss you in a landfill. IM firms are looking more for the future, to invest in your development so you stay a lot longer.
Try the M&I website for a cursory look at what IB does and what AM does. THere's more infor for the former, but at least it's a start if you dont know anything.
They aren't referring to all in comp. They are referring to base.
But in general I would expect the base to be the same but the bonus to be much lower. Depends on the role as well (are you making the investment decision or are you more or a middle office role within AM).
Yeah I was talking about base pay like I mentioned above in my post.. in most cases of course all in comp will be higher for IB analysts than AM analysts.
in terms of hours, it definitely ranges based on your fund/position.. what aspect of AM are you interested in??
This is exactly the motivation and research ability that will get you to MD at Goldman Sachs in 5 years. Keep up the good work
Thanks, there's a ton of information on that thread.
In investment management you use your brain a lot to make money.
In investment banking you dont, you just repeat the same every day without thinking.
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