Small(er) town finance jobs
Hi everybody,
I wanted to get everyone's thoughts on this. I currently am working in lev fin but in the back of my mind am thinking about the future and raising kids near the rest of my family. The population is around ~200k. Plenty of solid companies but I don't think working for a corporation's finance department is first on my list. Does anyone have any insight on banking or other good finance jobs in a town this size? I obviously know my options would be limited, however, it is not in my interest to work in retail banking, etc. Would someone with my background be able to land any other solid opps (i.e. commercial lending, etc.)?
Thanks!
Any thoughts? Much appreciated!
I think it really depends on the exact city.
Thanks for the reply Nuclear! Can you elaborate on this or maybe speak at a higher level? I would like to provide as much information as possible without disclosing too many specifics so please let me know how I can help.
Give like your city + 3 other comparable cities just so we have a better idea of where you're coming from.
Great example. Let's try this.. Little rock, Jackson, Knoxville, Mobile. All somewhat comparable in the SE with similar populations. Let me know if you need further info.
Any input would be much appreciated!
If it's Little Rock you've got Stephens and Crews and Associates. Get a hold of the red book, oftentimes there are small muni offices in tier 2 cities just to be able to cover the state GO market. Regional commercial banks may have some interesting roles like loan syndication or FOREX, in muni land we are also seeing some banks bring stuff in house doing bank qualified bonds (BQs) not to mention middle market lending. Most small cities will have a boutique or two doing lower MM deals. Insurers are also an option as they usually have a big FI book. PWM and also bank trust departments also come to mind.
Just a few other thoughts there are some PE shops in smaller cities like Azalea Capital in Greenville SC. These shops tend to be smaller, with a specific focus e.g. Southeastern industrials. The accounting firms have offices in these smaller cities not just the Big 4, but smaller national firms like BDO, RSM and also regional firms like Decosimo or Carr, Riggs, Ingrahm. They may or may not have advisory service lines in your city, but that's another avenue to consider.
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I know this is an extreme example but Salt Lake City (~190k) vs say, Brownsville, TX (~180k) for example are going to give you very different opportunities. Things like what state the city is in and proximity to major cities are important too.
well seeing as someone was babbling on this board about how doctors make more than bankers, you should probably just go to med school ... after six to eight years of living on practically no salary, you will be set ..
But in all seriousness, I am sure you can find a super small M&A advisory, non-committed PE fund or valuation shop.
I work as a research analyst for an investment firm in a city of about 100k population. There are pros and cons. Pros include great lifestyle, low cost of living, enhanced ability to think independently / avoid groupthink, etc. Cons include travel, shopping, etc. It's awesome earning mutual fund / hedge fund compensation in a small city vs. NYC where your money goes half as far.
Thats great! Do you feel that there is much trajectory at your firm? Seems to me that these research analyst positions might be rare?
I am sure you do very well, but you have to admit that the term "mutual fund compensation" is LOL worthy
Bump for any additional thoughts!
If you've got a solid amount of lev fin experience/connections, you should become a fundless sponsor. Find a few solid $2-10mm EBITDA businesses headquartered in your city, sell the owners on selling to you, throw out some LoIs, then raise funding. Honestly there's like zero risk here with massive upside..
Other financial services options are going to be hit-or-miss. If you're not in a major city, your success as a financial services-provider is going to be limited to the "bankability" of your market. Bankers in your city would basically be offering a cheaper, local alternative to (for you) Atlanta/Charlotte-based firms. Investing roles would also be hit or miss. You may be able to find an awesome shop with a manager who just wants to live in that city, who knows. That's just a matter of searching for opportunities. Otherwise, you're probably going to be limited to jobs in industry.
Family Offices
Having just relocated from NYC to a city of ~200,000, you should be able to find 2-3 MM boutique IB shops. A dozen PWM shops with research roles (mostly for people that have been in the industry 10+ years), 1-2 muni shops, and then a couple of commercial banking analyst roles.
Thanks laxman. Very helpful. Could you elaborate on the commercial banking analyst roles? What type of work would this be? What would the pay be like and the overall trajectory and lifestyle? Also, would my background suit me well for applying to a position like this?
It depends on the type of role you get into. There's typically a team of loan officers/relationship managers that are out trying to bring deals in and then there is a team of credit analysts looking at company/personal financial statements to structure the terms of deals. At my bank, you have to have exposure to the credit analysis side before they move you to the front office. The deals are split approximately 70/30 between real estate and C&I.
Salary is around 55 - 70 for 1-3 years of experience. Salary progression will depend on whether or not you stay in underwriting or move to the RM side of things. Hours are typically 8:50-5:30.
I worked in DCM/corporate credit analysis which is different than what I'm doing now, if you have a proven background a good bank should be willing to bring you on if you seem trainable and are a fit with the team.
Someone's got to say it....
Edward Jones Financial Advisor.
H&R block yo.
Remember, there's always the option of working remotely. Many employers don't like it, but some are willing to deal with it for the right employee. The MM bank I interned at had an employee who worked from the PNW, where we only had a public finance office (my internship wasn't in IBD).
Look for boutiques within a 30 minute commute range. I'm sure you can find a few.
If someone wanted to get into commercial banking in a city this size what would be the path for someone that is an underwriter in sponsor finance in a larger city? What would be the ideal time to (i.e., years of experience) to make the switch? I am interested in the commercial banking career path but am unclear on how exactly it works in these small (ER) cities (or any for that matter). Is it typical to move from an underwriter role to a more sales type role?? Are these good paying roles? Also, would it typically be better to go with a more well known bank than a community bank when making this move?
Define commercial, it can mean "Ma and Pa" type businesses doing a couple 100k-5MM in revenue, lower MM companies, true middle market shops or at very large banks it could be pretty much anything short of true corporate banking. For example Citi breaks it into small business banking, business banking and commercial banking. Which are you referring to?
Apologies but I am not familiar enough with the details to give a good answer to this.. Do you have any insight into these different types and what they would each provide in a small city that has been previously discussed? I am assuming the larger the better but considering it may be a smaller city (pop. ~200k) the opportunities may be limited?
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