Asset Management V Investment Banking

Hello again. Recently I received an investment banking offer from a BB in London. I had already secured an offer from PIMCO within the PM/credit research team.

I'd like to hear your thoughts about which one to choose. Keep in mind both are in London

I recently enquired to PIMCO about the future of the role and they told me that the path for PM will be facilitated. They're even offering to pay for CFA level 3 expenses. Tbh PIMCO are kings, but I wanted equities, if I'm being honest. Still this is a very good chance.

IB offer is at a BB. Extremely vast exit opps and higher bonus. Though I don't like the sell-side, this is still a very good chance to lateral to the buy-side later on.

What I had in mind was AM LO in equities but I just couldn't get a single interview. FI is still good though, it's about more stability.

What do you guys think?

Comments (13)

Dec 6, 2021 - 5:59am

Honestly PIMCO is best in class + getting a role on the FI Research team is quite hard. Am in AM equities and would probably go to PIMCO. Have heard of people shifting from debt to equities investing after a few years. 

Most Helpful
Dec 6, 2021 - 7:17am

If you want to be on the buy side and have an offer for an investor track at the top FI manager in the world, I don't see why you would even consider the BB. Forget about money, it's all trivial at this point. Yes you'll make more at the BB for now. In the future, if you make it to PM and do well (FI or EQ), you'll make way more than essentially 99% of the folks at a BB. And, although not BB comp, it's still very good for a newly minted college grad. Or even after a few yrs in the workforce. 

EQ and FI are clearly different. You'll find that FI is far more complex then EQ. You'll also find that PIMCO's research strength and resources are dominant. My guess (simply that) is one could lateral from FI to EQ once you demonstrate that you know how to do the research. 

A hard decision would be if you had an offer at LO AM in EQ research. You don't. Your situation is an apple / orange for what you want to do. You will build the skillset faster at PIMCO.

Dec 6, 2021 - 8:43am

They have tiers in essentially all of their roles including PMs. PM, VP PM, SVP PM, EVP PM, MD PM. So obviously the higher you get the more you make. Typically a PM is on a team and generally works on more than one fund. Bottom tier PMs will make 350- 500k. Top tier PMs will make several million. In addition to profit sharing for VPs, they have an MD bonus pool which is where the money is made. 70 some odd folks sharing 500M. They don't all get the same but even a minor share is significant. Not as top heavy as it used to be where one or two made 9 figures and several made well into 8 figures. FIgure the EVP spot gets you about 1M and then another few Mil for MD.

Dec 6, 2021 - 3:10pm

Totally dependent on firm. However, I think that's a little quick. I would forecast 8-10 yrs in the CRA or EQA role, gaining more credibility and wins along the way. BTW, an analyst at a strong fund can earn upwards of a mil too. Of course depends on the firm. If the analyst is getting high 6 or low 7 figures, figure the PM is getting close to or exceeding 10M. It happens, trust me. Good friend of mine was a lead PM prior to going to the HF world and he had several yrs making north of $10M. He left to start a HF and now manages a family office (his) in which he manages his personal wealth (over 500M). That doesn't happen in the IB world unless you are C-Suite material.

  • Intern in CorpFin
Dec 7, 2021 - 8:36am

Thanks for your input mate. Much appreciated.

If you wouldn't mind, do you know enough about the commercial real estate group at PIMCO? I have a final round interview with them but don't know a lot about the team. London office as well.

Dec 7, 2021 - 8:50am

Don't know much about that other than to say PIMCO recently became a big player in CRE via it's merging / leadership of Allianz Corp RE. Unusual in that Allianz is the parent but they turned the CRE over to PIMCO. Their combined effort finds them with over 100B in Corp RE throughout the world. They also recently acquired a Commercial REIT for about 3B and are looking to build a significant arm in Alts which includes CRE credit. 

In a fee compressing environment, large shops are looking for ways to increase fees in other areas. PIMCO has the depth and strength to handle the research appropriately to add meaningful opportunities for their investors. You'll find them doing all sorts of interesting things in Emerging Markets, Alts (RE, PE, HF, Interval Funds). Lots on their website to read so you can get up to speed. I would start there and get familiar with their expansion in CRE.

Dec 19, 2021 - 5:09pm

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