I am a senior director in Equity Research at a place like Barcap, Credit Suisse, UBS, Deutsche in Equity Research and recently approached by top US long only like Fidelity, T Rowe Price, Wellington, etc for equity research in the same sector.
I like my current team a lot. Would you make the Switch given this opportunity? I always wanted to move to buyside and prefer the lifestyle of LO over HF. Is this switch worth making now? or would be it be better until I head my own team at my current place (this will likely be possibility within 3-5 years).
Any views on relative prestige of these two jobs and exit opportunities would really be appreciated.
Thank you for any feedback.
IMO the best move is staying put. You like your team, and can assume more responsibility within the next few years. You could have even better exit opportunities! However, is heading your own team a guarantee in the future? If your not sure 100%, make your move now
The key sentence here is "I always wanted to move to buyside and prefer the lifestyle of LO over HF."
Only thing is you need to make sure that you have a PM who is good person and good investor. And you are compensated fairly.
It’s weird to me that you’re asking about prestige and exit opps even though you’re relatively senior… would think you know the drill by now. Obviously the buy side especially at a place like Wellington is more prestigious and is THE exit opp, but if you’re happy in your seat and have a good path totally understandable to stay put
Perhaps your title is inflated.. but as a "senior director" don't you have your own coverage and team? What is your YOE and comp?What type of role are you being recruited into- sr sector analyst or more of a support analyst role?You'd have to share more context for us to give you a good answer. without any context… I'll assume you may have to take a pay and responsibility cut
Also you shouldn’t be thinking about “exit opps” anymore… not a 22 yr old. Can retire in both of these roles. And wouldn’t even consider Buyside role if you didn’t want to do it for the rest of your career
Let me add a bit more info on current situation.
My formal title on the sellside is director, but I have my own team of 2 to support me. Buyside offer is 35% more comp + 10% less hours (8-5 at LO vs 8-6 at IB). LO position doesnt have any management responsibility, but is the most senior coverage of an important sector. This is a new role at the LO. Average tenure among investment staff at this LO is 18 years, so I am wondering whether such an opportunity will come again. The move to jump from analyst to PM at this particular LO is tricky....
So the conditions at the LO are a bit better, but it is unlikely that I will be leading a big team (managing 4-6 analysts on sellside is possible in 3-4 years).
So there is more info... Still thinking about which path to take.
So you're weighing better comp, better hours and your preference to move to the buyside vs managing a team of analysts? I don't know what to say really, people on the buyside generally prefer to manage money, not people. You don't mention it in your question or explanation, but do you really want to make investments?
Regarding your choice this is how I would see it: you can choose to stay at your firm if you really like your team and your job, you don't need to feel bad about making that choice. However, if you would want to move to LO buyside at some stage or want to manage money or see investments made from your ideas, moving early is better than later, especially in a good seat (which seems to be the case from the LOs you've listed).
Exit opportunities are not too relevant if you go to an exit opportunity where tenure is 20 years or so. But I can entertain that thought of maybe wanting to move somewhere else at a later stage; for that it's much easier to do if you already have a good LO seat than if you try to join as an MD from the sellside. As a side point, we get dozens of applications from sellside for any position we open, but unless we are looking for a more junior role, we almost always hire from another LO.
Thanks a lot.
This is very helpful
I second all the advice you got from sreaper
Most senior coverage of an important sector is very good to hear- most important thing IMO. The bump up on comp is also good. I wouldn't sweat the ramp process to PM just yet, varies by shop but you can make very good money (and have good flexibility) as a a sr analyst. Many/most Sr Analysts are happy staying in those seats. Brand new seat is also good to hear - is this stemming from the launch of a new fund? I would also be sure to have an idea of what your earnings power might be in 3 years in the LO seat if you do well to make sure your expectations are level set. Very fair Q to ask. Then compare that to what you could make on SS. Your SS seat is also likely a good one that you shouldn't walk from Willy nilly, so you will have to make a tough personal choice. Try to think longer term - which seat would you rather have in 5 yr. Keep in mind LO has similar industry headwinds as ER does. Good luck and let us know what you go with
And I’ll also mirror another response you got — your experience will be 90% driven by the PM/PMs you work with. you’ll have to interact with them on daily basis vs on sellside where dor doesn’t matter much (if your work is good). Make sure you like them a lot. Most PMs are bad terrible people managers
I'm sorry to put this so indelicately...but are you fucking high?
You're talking about exit opps when you've been offered THE exit opp of all exit opps. A lot of sell side folks take pay cuts up front to go to LO AMs because the long-term risk-adjusted compensation trajectory is essentially unmatched in the entire field of finance. Let alone with a 35% up front pay bump and meaningful WLB benefit.
Coming from someone in SS ER trying to make the jump you're describing I simply can't imagine why this wouldn't be a no brainer. What is it about the sell side that makes your current role so compelling? Honest question. Especially given you purport to be a "senior director" yet you're 3-5 years away from "managing your own team." Something doesn't smell right but maybe that's just me.
Take the job and be set for life. Or keep pumping out useless commoditized earnings notes every quarter for the rest of your career for less money.
@needsomehelp can you share some sr analyst comp ranges that you are privy to, maybe I'm too low.. but to keep the thread balanced.. most sr ss seats should have similar comp to LO seats. What's different about LO is the upside if you can get a PM role and/or a heavy partnership stake - but unfortunately those seats are very rare and dwindling fast. LMK if I'm wrong, will make me happier (I'm at a LO). Happy 4th all.
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