Do certain industry teams pigeonhole you for the future? Or is this BS?

Kazimierz:

Incoming SA as well. From what I understand, at a BB/firm that is typically considered very strong in terms of deal flow, your name brand is strong enough to overcome potential difficulty that comes from being in a specialized group (think JPM or GS FIG, or MS/GS RE). If it's a smaller firm that specializes in one particular area, you'll find that most analysts do end up getting 'pigeonholed' because that's all they get recruited for since they lack the name brand.

Would really appreciate someone who works as an analyst in FIG/RE or any other 'specialized group' (Power & Utilities?) to chime in.

FIG and RE are known to limit your options somewhat. RE in particular; it's a world unto itself and it's tough to move out, particularly the farther into your career your progress. FIG less so, but it still usually prompts someone to ask why you're interviewing for a generalist or non-FIG-but-other-sector-specific investing role. The better/bigger/more prestigious bank you're at, the less heavy that millstone around your neck will be.

GS FIG places really well. One, it's always been the powerhouse group of the firm. Chris Cole, J.C. Flowers, and numerous other hitters all launched that group and spent years in the group before moving on to more senior positions internally or something outside the firm. The legacy CME group that became TMT is only recently (in the past decade and a half ish) on the same level.

Two, since GS doesn't have a dedicated M&A product group (yes, there's actually an M&A group but it's almost entirely senior bankers who are essentially a think tank rather than product experts), all industry groups do modeling in-house. The strongest industry groups get really strong deal experience, so (in rough order) FIG, TMT, CRHG, and NRG provide a thoroughly technical experience that leads to analysts placing strongly.

GS FIG analysts place lights-out in both PE and HF roles, both FIG and non-FIG. TPG Growth, TPG buyout, Carlyle, KKR, Warburg (TMT), Maverick, Trian, Providence, JC Flowers, HIG, etc. Also beyond finance (know two at Apple).

I don't think a single other BB does as well for non-FIG roles. MM banks even less so.

Depending on the bank you're at, FIG may be verticalized. It's typically banks, insurance, Asset Management, specialty finance, and financial technology (although this may be siloed under TMT). Some banks give analysts a generalist experience across all those verticals. GS doesn't; you're staffed into one. If you're in banks, you're learning the wonky banks modeling. If you're in insurance, it's even worse. If you're in FTAM, you have the two EBITDA-driven verticals and your skill-set is no different than anyone in TMT, CRG, Industrials, or any other group. If you're at a bank that doesn't verticalize, you hope and pray you get some 'normal' stuff so you can sell it on your resume.

At the end of the day, smart people can move towards the roles they want. Certain industries will make it harder for you to move around, so if you care a ton, try to avoid getting placed into one. If you are, don't stress too much. Make sure you learn all the conventional modeling skills, but if you're interested in the buy-side, focus on developing critical thinking skills and thinking like an investor.

If you want a PE role, be able to articulate the nuances of each deal on your resume how a sponsor would. If you want to work in the public markets, have at least two ideas. Some people will say two is enough. I suggest knowing a third inside and out. Your interviews may be with four or six different people over the course of a day. It's mandatory to have a second name so when the team circles up later to discuss you, not everyone goes "Yeah, he told me the exact same fucking thing." Knowing a third means if you pitch someone your second, they question you, you defend it, and then he goes "Okay, give me another then," you don't automatically revert back to your first.

If you want to work in VC (no idea why you'd be starting in RE if you did; not impossible from FIG, especially if you were in fintech or asset management), know several spaces really well. Be able to point to one or two recently IPO-ed companies, explaining their product, go-to-market strategy (and how it changed as they scaled from idea to expansion stage), competitive landscape, and return profile to the Venture Investors. Be able to speak articulately about mid-stage (Series B or C) companies you found early and how your idea about their viability was either proven correct or incorrect. Know some seed stage deals that may not be on everyone's radar and speak wisely about their market opportunity and strength of the leadership (whether it positions them to succeed in that opportunity).

FIG and RE aren't a death sentence. You just need to work smart to get from there to your next role if that role is outside that industry.