Am I Crazy for Wanting to Pursue Institutional Sales/IR Over Banking or S&T?
Currently an associate at a BB asset manager in NYC in a middle-office role with significant exposure to the institutional sales/IR teams. Several people from my team have made the move into those seats, so it’s a realistic path internally.
I’ve also considered trying to move internally to the investment bank, specifically capital markets or S&T. It would be a much tougher pivot given how competitive those seats are, but I think it’s possible with enough networking and technical preparation.
However, the more I think about it, the more appealing institutional sales/capital formation at a top asset manager or alternatives shop becomes.
My thinking is that as alternative managers continue to grow and fundraising becomes increasingly competitive, the ability to raise capital and maintain institutional relationships will become even more valuable. At the right platform, it seems like the long-term compensation potential can be substantial, WLB is generally better than banking, and it’s a much more natural pivot from my current seat.
A lot of my friends are in banking and doing well, so it’s easy to feel like I should be pursuing the more traditional or “prestigious” Wall Street path. But I’m starting to question whether spending years trying to break into banking/S&T is actually the best move, especially if institutional sales/capital formation could offer comparable upside with a better lifestyle.
I’ve also recently been getting interviews for some fairly lucrative IR roles at well-established alternative managers. While these opportunities are attractive, my long-term goal would be to move into a true institutional fundraising/sales seat rather than primarily servicing existing LP relationships. I’m curious how difficult that transition is in practice. Is starting in a more traditional IR role at a top fund a good stepping stone into capital formation, or is there a risk of getting pigeonholed into the servicing side of the business?
I guess my main questions are:
1. Am I overestimating the long-term compensation potential and career trajectory of institutional fundraising relative to traditional banking/S&T?
2. How realistic is the transition from IR/client servicing into true institutional sales/fundraising? Is this a common progression?
3. Would you prioritize getting into a top alternatives platform in an IR capacity and working toward sales, or holding out for a direct institutional sales opportunity?
The combination of compensation potential, lifestyle, and a relatively accessible pivot from my current role almost seems too good to be true, which makes me wonder what I’m overlooking.
Would be interested to hear from anyone working in institutional sales, capital formation, or IR, particularly at larger alternative asset managers. Curious whether I’m looking at this the right way or missing some major drawbacks.
Based on the most helpful WSO content, your thought process seems well-reasoned, and you're not crazy for considering institutional sales/IR over banking or S&T. Here's a breakdown of your questions and concerns:
1. Long-term compensation potential and career trajectory of institutional fundraising vs. banking/S&T
2. Transition from IR/client servicing to institutional sales/fundraising
3. Prioritizing IR at a top alternatives platform vs. holding out for direct institutional sales
Key Considerations:
Final Thoughts:
Your instincts about the growing importance of institutional fundraising and its potential for compensation and lifestyle balance are spot on. If you’re already getting interviews for lucrative IR roles at top alternative managers, that’s a strong signal that you’re on the right track. Prioritize platforms with a clear path to institutional sales, and don’t underestimate the value of starting in IR if it positions you for long-term success in fundraising.
Sources: Q&A: MBB, BB S&T+IB, Top MBA, US/Global, Sales and Trading - A Comprehensive Guide, Why choose Sales and Trading over Investment Banking?, Kennedy School of Government (and schools of the like)
I would absolutely do sales. The human element is only going to be reinforced. Not to mention when I did manage accounts earlier in my career, while I took a lot of calls at random times it offered far more flexibility.
no, i don't think you're crazy at all...
did the buyside thing for a few years before switching to fundraising. best move of my career i hated equity investing as an actual job to wake up to everyday. I have maybe 3 friends in seats that i think that are attractive on the buyside and even then i wouldn't go for it, personally
Here, my role is both being a RM and fundraiser. Hours are generally 9-6 usually but starting to hit the road to meet with LPs/prospects. This comes with more responsibility so definitely spending more evenings speaking to Asian clients at 8pm. Have been traveling a little more than 1nce/month but expect that to go up as we approach year-end.
Was told I should expect 300k all in this year but "it's really up to you", i.e., if I actually raise assets and clients reach out to me and I start QB'ing processes, it should be above that. I would assume revenue generators, i.e., people who can identify prospects, raise XXXmn or so independently are closer to 450-500k all in. Seniors in fundraising at my firm are in the 7 figure range, all of them.
I've been pretty vocal to mgmt about wanting to stay and become a senior. Firm is growing a lot and we run lean so I think there's a lot of opportunity to progress. Also helps that our performance has been pretty good. It'd suck to be in this seat for unsellable investment capabilities...
No - you aren't crazy, and I think it's a great option. A few thoughts on your questions above:
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