What do you do to break into ER?

I'm a undergraduate student, who wants to go into ER. I'm at a non-target, but I was wondering how difficult it is to get into ER. Is it like IB, where perfect grades and a target school can get you in, or is it more relaxed?

I was wondering how difficult it is to break in, if you really want to break in. If I have multiple internships, good grades, my own portfolio, and I'm a CFA candidate will it still be extremely hard to break in? Or is it easier after some experience?

It's my top career choice (that and IB), but I often hear that there are so few spots that the only way to get in is to be lucky with contacts.

 

Extremely difficult. There are a tiny number of positions for the total number of applicants (we just got over 1,000 applicants for a single biotech position and most candidates had advanced degrees [M.D.s, Ph.D.s, or both]), many of them from ivies.

Maybe other sectors are different, but at least in healthcare it's more or less assumed you will have industry knowledge or an advanced degree, or both.

Having said that anything is possible if you want it bad enough, just don't assume you'll waltz into a position by being a CFA candidate.

 

I interned in ER. This seems about right for biotech and pharma, along with other highly technical industries. Not necessarily the case for other, more macro focused industries (my internship was in the business services coverage group, and nobody had industry specific experience or advanced degrees other than an MBA). However, a couple years of experience in IB or the relevant industry may be necessary, and will definitely be very helpful.

"There's nothing you can do if you're too scared to try." - Nickel Creek
 

My impression is that the recruiting process for equity research mostly requires a lot of luck. For instance, when I recruited as a college senior (following a brief and unsatisfying stint as a junior investment banking summer analyst), I only got interviewed at a single ER firm, which is where I'm now working today. My firm does very little on-campus recruiting: they maintain a presence at like 3-4 schools in the country, and my school isn't one of them. The only reason I got the interview was because I had networked with an alumni at the firm over the summer, and he referred me internally (my firm actually has an officialized internal referral process that gives bonuses to employees who refer successful candidates). The key takeaway here? Networking is key.

That said, most entry-level associate roles in ER don't require advanced degrees. Healthcare (especially biotech) is just the most prominent exception.

 
Best Response

Echo above comments. Lots of luck at the entry level spots. Have a strong financial statement understanding for any interviews, be able to talk about a few interesting companies, and network your ass off. There just aren't as many spots as for IBD / S&T. I interviewed for ER as a non-target at a top MM bank, had some harder financial statement questions that could have been answered in a few ways but the interviewer was looking for his ONE specific way. I didn't nail it, and I didn't nail it in my follow up e-mail after hahah (even asked a few people before responding.)

Other friend interviewed at a BB for ER and had ZERO technical questions.... processes vary everywhere. Best of luck!

...
 

Yeah this sounds about right. Prepare for everything, but expect nothing. Back when I was half-assedly recruiting for equity research in my junior year, I interviewed at two places, Credit Suisse and Sanford Bernstein. CS asked me for a basic stock pitch and basically nothing else. Meanwhile, Bernstein put me through 5 rounds of consulting case interview and market sizing questions. Point is, neither firm asked me any traditional finance technicals (e.g. accounting, valuation, reading financial statements, etc.)! Just goes to show how random things can be.

My recommendation? At very minimum, know your standard finance technicals, have one good stock pitch down cold, and perhaps most importantly, really be able to explain to them why you want the job.

 

I interviewed at one BB ER shop and one MM ER shop. The BB ER shop had multiple interviews and I had to pitch two different stocks, had to talk about trends in the market, etc. The MM ER shop mostly just asked about my experience since I had a couple previous ER internships (didn't even ask me to pitch a stock).

Both of these came through connections. There are fewer ER spots than there are for IBD, but at the same time, there are fewer candidates. Just know that and don't get intimidated. Also, I have had 5+ people tell me CFA candidate means nothing - you either are a CFA or you aren't, you know?

Good luck. Hope some of this helped.

 

I was in the same boat less than 2 years ago. Didn't really know where to apply so here is my advice after sending seemingly thousands of cold emails and submitting my resume countless times to the black box that is online submission.

If you are from a non-target and don't have a great relationship with anyone at a big "well-known" bank (ie. JPM, Goldman, Morgan, etc etc etc) - not even worth applying.

If you are looking for a summer internship aim for smaller firms. I would recommend using the database on this site of Equity Research firms and just go one by one down the list and see if they offer summer internships. For some of the small shops, email an analyst (get email from website or connect on Linked In) and ask to talk to them for career advice etc and ask if their firm offers internships.

If you are serious about equity research, I will say it will be painful but may be huge advantage, if you offer to work non-paid for the summer. If it is with a small but reputable firm, it could either A) lead to full time down the road or, and the very least, B) be a great resume builder when you apply for full time positions. Plus, just getting exposure to the industry and networking albeit even its only internal is an advantage in itself.

Some companies that I would be aiming for, for a summer internship would be places like BB&T, HSBC, Mizuho, Jefferies (reach), Macquarie but again for a summer internship just be happy with whatever, don't be turned off because its a small name or less "respected" company.

Recent College Graduate
 

At the BB ER firm that I am interning at this summer, they only accepted 16 candidates for ALL the Asia offices combined, which really shows how tight the headcount is.

I also agree with the other comments in the thread; getting in depends a lot on your luck, and also a bit of networking if you're not at a target. I know this sounds pretty depressing and disappointing, but the alternative interpretation is that you should prepare everything so that luck wouldn't be a factor. For my interview process, I wasn't even required to pitch a stock or answer any technical questions (partially because they had a complete-at-home case study), because I had a very in-depth discussion with an MD covering TMT about the future prospects of eSports as an industry.

 

The CFA isn't really "hated" on this forum. It's just that it's not so valuable for IB roles. For ER and AM, however, it is essential, so completing L1 before you graduate will look good. Expand your search to include sell-side BBs, buyside funds, and independent research firms. If you want to know the differences, a simple search should get you good results on Google or Investopedia.

 

Ya I'm looking at some buy side funds as well and some independent research firms. It is just kind of hard because I go to school down in San Diego where there is a lack of finance positions available. I am more than willing to relocate over summer, I just wanted a research position during the school year as well. Realistically, how hard would it be for me to get an SA research position at a BB with a 3.4 from a nontarget and my only finance experience in WM for Wells Fargo and Finance and Investing Clubs. Do I have a shot? Are equity research positions any easier to get than IBD or S&T? Thank you, input is greatly appreciated.

 

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