Private Banking Decision Help

Hello all,
I've searched the forums and for some reason it seems whenever a question about Private Banking is asked, a slew of sarcasm follows. Hopefully I can avoid that. I'm deciding on a summer internship and it seems as if I am going to have an opportunity to do a private banking internship at a BB and quite possibly a FX trading summer internship at another BB. Te pb internship is more of a guarantee right now, we will see what happens. My question is as follows as far as private banking goes what can you expect a normal day to be on average, responsibilities, etc.. I'm not going to allow pay to influence my decision greatly but in private banking from what I read on the forums is you can expect 70+10 and bonuses 20-40, is this accurate? I'm more curious than anything. I imagine a continued career through private banking will allow a nice lifestyle, but what is the track one usually takes in PB? Any private bankers on board who wouldn't mind answering a few questions? Thanks!

 
Lloyd Christmas:
downtown22:
20-40 bonuses at the analyst level? Really? That's better than I thought...

I meant base salary/signing bonus only. I doubt there are year-end bonuses of that level anywhere in PB.

Bonuses are absolutely in this range (or even slightly higher) at the Analyst level in PB. Of course this varies a lot by firm and performance.

 

nick6489 - The answers to your questions depend on a variety of factors. To name a few...

1) Location

2) Desk vs. Intergrated Team (i.e. PBs have equity solution or hedge fund due diligence desks that fcous more on strategy and providing solutions to the intergrated teams AND they have front office teams where the advisors are the ones who manage the face to face client relationships)

3) Model (brokerage/commission vs. managed account-focus)

 
Best Response
tan86:
nick6489 - The answers to your questions depend on a variety of factors. To name a few...

1) Location

2) Desk vs. Intergrated Team (i.e. PBs have equity solution or hedge fund due diligence desks that fcous more on strategy and providing solutions to the intergrated teams AND they have front office teams where the advisors are the ones who manage the face to face client relationships)

3) Model (brokerage/commission vs. managed account-focus)

The position is in NYC at a BB. Where I would end up I have no idea, I'd be gunning for a front office team and have a good shot. Could you elaborate any further, are you currently involved in private banking?

 
nick6489:
tan86:
nick6489 - The answers to your questions depend on a variety of factors. To name a few...

1) Location

2) Desk vs. Intergrated Team (i.e. PBs have equity solution or hedge fund due diligence desks that fcous more on strategy and providing solutions to the intergrated teams AND they have front office teams where the advisors are the ones who manage the face to face client relationships)

3) Model (brokerage/commission vs. managed account-focus)

The position is in NYC at a BB. Where I would end up I have no idea, I'd be gunning for a front office team and have a good shot. Could you elaborate any further, are you currently involved in private banking?

I did two years of PB at a BB.

As far as front office advisor teams and what your responsibilities will be as an analyst, it is going to vary a lot depending on the firm.

At a firm like BAML or MS, you will be doing a lot of prospecting, as well as helping your advisors research client questions.

At places like GS or JPM, there will be more analytical work as far as researching clients/prospects portfolios using asset allocation models, projecting risk/returns of portfolios, looking at wealth projections/cash flow analysis, etc. There will be some prospecting, as getting new client assets is the name of the game when it comes down to it.

Also, the above poster is accurate in regards to bonus numbers.

 

I know private banking pretty much gets a bad rep here but I don't think it's bad at all, my uncle's a private banker (albeit in monaco) and lifestyle-wise it looks pretty laid back -especially compared to IB. He has beach houses in Ibiza and Cannes too, so I guess pay going up the ranks isn't bad, they're not massive villas mind you but still.

People like Coldplay and voted for the Nazis, you can't trust people Jeremy
 

Personally I'm hoping to break into PB, the guys on here shit on it because it's not considered as prestigious in the finance community as PE/HF/IB. I really want to do it because it's a happy medium between prestige, pay, lifestyle, and the work you do. To get an idea of what it's like you can either go to the BBs career page (I don't know about other's, but JP's is pretty good: http://careers.jpmorgan.com/student/jpmorgan/careers) or get the Vault guide.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

Yeah, but half the kids on this forum are going to be IBD burnouts by the time they hit 24 so who cares about their opinions.

On a lighter note, PB is very diverse. Usually, my friends who work in relationship management, focus a lot of their time staying up to date with the markets and staying in touch with clients.

 

I can answer the MBA question, even though Im not in industry. From what I've read the Analyst program is 3 years versus 2. Most people go back for an MBA and then move to Associate, but some are asked to stay on straight to Associate (much like IB).

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

I was told that they're generally probably in the mid-high six figures, the good ones make in the 7 figures. It's a comfortable lifestyle, but you're not balling rich like the PE/HF guys.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

Let me clarify what I have been told is the case, with my interpretation of what that means:

-The best make 7 figures, but these are the ballers. Of the guys that have been in the business over 10 years, I'm assuming this is the top 5%

-If you've been in the business for over 10 years, working for either a BB or high-quality boutique PB/PWM firm, you are most likely making in the $500k-$900k range, I'm guessing over 50% of the guys in the industry do, anyways (I make this assumption because many firms/banks have minimums of assets you have to have under management to work for the firm, and if you're keeping your clients that must mean that you're getting at least decent returns yearly)

-If you've been in the business over 10 years, you're probably making at least $250k (BB, high-quality boutique PB/PWM firm)

-I have no doubt that there are 1-man shops and PWM firms with guys that have been working for 10+ years making less than $250k, but I can't imagine that being the case the majority of the time.

I am absolutely not in the PB/PWM industry. This is my perception of what the guys are making based on talking to a couple of people about it and reading the Vault guide.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

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