I want to work in Equity Research, but now I can't do this because I'm undergraduate. Now I have the opportunity to work as intern in Private Equity Fund.
Will this work experience be relevant for the position equity research analyst in Merrill Lynch, UBS and other Bulge Bracket banks ? Or probably there are other finance spheres which could be more relevant as previous experience ?
Thanks in advance.
Vladimir
| +72 | Q&A - Buyside Equity Research Analyst/PM | 27 | 1w | |
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It will help.
yes.
Spin PE into ER (Originally Posted: 02/26/2014)
Internship recruiting is just about over and I didn't get an internship in ER but did receive a summer offer from a prestigious PE firm. Do you think it will be possible to spin this to benefit me in fulltime ER recruiting? Buy side or sell side
possibly..gonna be tough to land FT offer at PE shop..I'd look into boutique research
A "prestigious" PE internship should open a ton of doors in general.
Duff mind if I inbox you?
Of course.
PE to Equity Research (Originally Posted: 07/12/2011)
I'm in PE, just about done with my first year as an Associate, and I work for a lower middle market fund (think ~$300M in size.) I find myself completely bored by the job and far less interested in it than I had expected I would be. Additionally, transactional work is just boring as hell, and I'm not sure I can stick this out another year.
I've been thinking it would be an interesting move to get into Equity Research covering an interesting industry. It removes the transactional crap and the actual work seems fun and interesting. I've started looking into jobs but I wanted to get some WSO monkeys views on this.
1.) Is lower MM-PE to ER doable? Is it doable to move to a BB bank's research department? Full disclosure, I worked at a top MM ibank in an industry group prior to PE.
2.) Is the CFA absolutely essential to working in ER? I think that moreso than anything else, the idea of going through the CFA is the biggest hindrance to making ER a career. I've heard it varies by shop, but I just don't know that I could get myself to do it. So much time and effort that is secondary to everything else.
Thanks in advance for any help. Silver bananas will be doled out to anyone who gives me some solid info. And of course, I did a search function and it looks like this hasn't been asked before.
CFA for sell-side is absolutely not neccessary to advance. Just as an example, I know several senior/lead analysts who are not CFAs and do not have an MBA. When I started at sell-side ER, I was expected to take series 7, 63, 86 and 87 only.
EDIT: this is for a BB, not sure about anything else.
As for buy-side research, it is different. One of my best friends started at a large asset manager and her first three years are highly structured. She has specific timelines for passing all 3 levels and becoming chartered as a CFA.
I don't know what planet you're on Flake but most BB reports have a CFA on the sector team. For anyone junior this day and age, BB ER management (think head of research and the globally known MDs with #1 inst. invstr rankings) expects you to get your CFA eventually - because that's just the way shit is. This is a client facing business and any way to hide anemic stock picks behind a world renowd pedigree is surely appreciated. Don't look at the past ("OMG lyke i know a senior MD who got where he is with a high school degree!!!" yay - stfu). Times are changing and education/pedigree expectations in BBs are 5x what they were a decade ago - so think forward and don't let the past lull you into a false sense of security. Further, As sellside ER analyst keep jocking buyside ER people (and many have CFAs) there will be super hardcore convergence of qualifications, so that sellside ER analysts can match buyside and vice versa. Think of it like high school peer pressure. My list of qualifications is 9 inches long while yours is 4 or 5.
The fortunate thing TheKing, is that you are likely skilled and likely are interested in applying your fundamental equity valuation, and understanding of how the operating drivers/industry drivers of a company builds equity value - to understand how that thesis informs and drives buyers and sellers in the public markets. right? And you will get that -- in incessant loads! Yet the job entails so much more -- which will dilute your primary job as a fundamental equity analyst. Makes no sense right? Let me explain. The unfortunate thing is that you will be the trading desk's b*, at the beck and call. Second is the political factor of influencing your necessity to get a CFA to keep ER management happy and clients feeling like you are legit. Third is the incessant marketing to ensure you're getting institutional investor rankings, which will necessitate (1) 50+ page reports about mundane industry shit that HFs dont want to research (you will be the "outsourced" menial data-storage desk for all the Gartner and Forrester shit, clients will call you and ask you to send them that shit in pretty formatting - now- , trust me i do it) (2) you will travel and market and smile and dial like a fiend -- ALL in the hopes of getting to that ii ranking. Mind you, if you don't get that ii ranking you are not going to be around as a senior analyst very long.
Do not underestimate how much influence the ii rankings will have on your career, it will be why you lose sleep at night and it will be all your gf/wife will hear you talk about. BBs hire and fire people based on ii rankings. If you think you're the shit and able to get even a #4 spot in ii, just know that for example in healthcare u have ex doctors putting out detailed product analysis and going golfing with the CEOs of these companies - you have virtually no edge starting out and will need to be a bitch (again!!) to a sr analyst who is ii ranked who may at one point in your career (call it a 5-7 year plan) carve out 2 names for you to publicly have recommendations on.
fucking sweet huh?
@Flake:
Thanks bud. My interest is mainly in sell-side research, so that sounds pretty ideal. I already have my Series 7 and 63 and wouldn't have much in the way of issues getting some more licenses. I just couldn't possibly bring myself to get the CFA - too much time and energy for something that seems marginally useful at best.
I'm not even 100% sure I'm going to make the switch, but it seems like a pretty cool gig and one that could be a great long-term career or lead to a nice industry gig.
If anyone else has any insight, I'd appreciate it. Particularly on switching from PE to ER.
Shooting you a PM
Why ER? If you hated banking and PE, not sure why you would think that ER would be much different. The grass always seems greener, but in the end, finance is finance.
I interact with sell-side analysts often to get up to speed on an industry quickly, the best ones are always the ones that are truly passionate about their industry. The thing is that your choice of industry will probably be limited somewhat, unless you are applying to sector specific shops, or you have a unique background that lends itself to a certain silo (engineering undergrad for semis, med school for pharma, etc). At the junior level, it will be a lot of modeling, listening to calls, channel checks, going to industry conferences and taking notes, etc. If you really want to do it, the CFA will not be a huge issue given your background, although I'm sure each shop/senior analyst has their own view on this. Obviously, you should try to go work for a senior analyst that does not have a CFA.
buy side, strong side
Everybody on the sell-side gets shit on, most people I talk to are looking to move to the buyside to avoid the tasks Durban described. With your background you could probably move directly to a buyside shop; we were looking at candidates similar to yourself not long ago. Some larger shops require the CFA at some point but smaller ones could care less.
durban just did one of his "hit-and-runs" lol. He usually gives a full detailed response and never looks back.
I work at one of the large equity/credit hedge funds ($15-30Bn AUM), and even though we have separate teams for both public and private investments, a lot of the guys in the PE group are analysing and putting on positions in public investments. As such, you may be able to use your PE background to move into a role which is eventually realistically more of an investment analyst on the buyside.
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