IBank or Commerical
After spending 1.5 years in a Big 4 firm, I finanlly made a smooth transition to ibanking. I am now having two offers and need to decide which to take. Both offers are in Hong Kong.
1. A 3-tier Japanese IBank (one of the largests in Japan),; Title: Corporate Finance Analyst.
The deal sizes might not be significant and but do have consistent deal flow. The pay is considered really low.
2. A leading commercial company specializes in investing and operating in energy sector; Title: Corporate Finance Analyst (In-house acquisition and project finance position)
A major player in the field. Major duties is to build models and forecasts cashflow to support M&A and project finance transactions. The company is generous and pays me at decent market stadards (read: about 20% - 30% higher than option 1, including bonous)
As a not-so-recent graduate, im looking forward to building a career in either ibanking or PEs. Can anyone comment on those options and what there exit strategies are like?
Many thanks!
Just based on what you wrote
Just based on what you wrote and nothing else... and ignoring $$ for now...
I'd say go for option #1 at the 3-tier Japanese Bank. The reason is that it's a more generalist position and you can spin that 3-4 years later to lateral to your next level opportunity.
Option #2 sounds too specialized. Do you really want to work in energy? Once you start, you might find yourself in a niche market and if you wind up not liking it, you shot yourself in the foot sort of say.
Option 2 would be more very
Option 2 would be more very interesting if you're interested in that sector.
My assumptions:
- the Japanese bank does small/medium size financing hence not strategic: this looks like evaluating a borrowers credit position, cahsflow but not much else.
- In option 2 you do several acquisition deals.
- Like aadpepsi said, if you can afford it ignore the $ for now, it's the long term that counts.
In opiton 2 you'd see deals from a broader level (more like an M&A than credit view), and more in depth too (but there would be less deals). This could be leveraged post MBA to enter a good energy IBD group.
Yea, I agree with both of
Yea, I agree with both of EuroMonkey and aadpepsi.
For Option 1, the investment banking position at the Japanese firm will allow me to sharpen my knowledge and skills, particularly in IPO and some M&A. It shouldn't be too difficult for me to move up to my next career level say as an associate in a 2-tier ibank, after a few years. But the $ is really bad.
For Option 2, it is too niche but I will get an exporsure to all aspects of M&A transcations and project financing in depth. The problem is, although i have an electrical engineering degree, i do not wanna limit myself to one sector in the early stage of my career, regardless how energy always plays a vital role in any country.
My next wondering would be: If i do go for the commercial position, and get solid experience in modelling and M&A transactions and project financing, how difficult will it be for me to move back to any major investment banks later on in my career, say 3-4 yrs later?
If you do the Japanese bank,
If you do the Japanese bank, you could get solid experience and then get an MBA and trade up. At the analyst level, you might avoid getting pigeon-holed. Don't necessarily do something for the money at such an early stage in your career. If you're good and you like what you'll be doing, then the money will follow.