Career advice - EB M&A vs LO Asset Management
Hello all. I'm at a crossroads with regards to a a career decision that I have to make and would really appreciate some input from the community.
I'm currently a senior analyst at an EB M&A team in the UK, and have recently received an offer from a LO AM firm based in London. In essence, the AM role is for an equities research analyst and is one which I genuinely find interesting, despite having no prior experience in, with the added bonus that I clicked really well with all the people that I met at the firm (from junior analysts all the way up to the Senior PMs - and I met quite a few of them). I would go so far as to say that the feeling is mutual, and they have upped their initial offer (c. 15% increase in base) to make it more attractive, with the revised offer sitting at c. £60k. People here are really friendly and smart, with some having made PM in 5-6 years and there is a clear and accelerated progression route for top performers.
The only downside is that the comp, at least in the first 2-3 years, is still slightly lower than I expected and is a noticeable pay cut to what I will make in IBD. Whilst I understand comp during the first few years of your career shouldn't be the end all be all, all-in I will probably be making c. 30% less should I take the AM role. In the first 2 years the bonus is nowhere as high as what my EB offers, especially with the recent paybump in IBD, although apparently I can expect to clear 80%-100%+ after this with a higher earnings ceiling as I get more senior.
Whilst the hours will obviously be a lot shorter than IBD, the thing is the hours at my EB are actually fairly decent (and I think a lot better than most banks tbh - which is what makes this decision a lot tougher) and the culture is fairly OK as well. I should probably also add that I've only spent <1 year at my current shop and am slightly worried how this may be perceived if I leave so soon.
Ultimately I understand this decision will be down to my own aspirations and what I want to do, but would be keen to hear what others who may have faced a similar decision / evaluating their exit opps have to say.
This is a long term decision. If this is a large respected long only, people tend to hold onto these seats for a very long time. If you're worried about moving early, don't be. It's only if a pattern emerges that it becomes an issue.
The question fundamentally is do you want to be in AM or do you want to be in IB/PE long term? Over time you'll be compensated well at either although you will probably earn more at the EB over the next 5 years because 1. More hours 2. It's an EB.
Sorry cant help. But would have deffo chosen AM. Interesting work over money but it depends why u need it for. I am incoming at a EB dying for AM, can I just ask how the process was for you? Were u headhunted. Any specific things I need to be doing If i want AM?
Feel free to PM me
I personally would stay in EB M&A. I've seen people from both of these backgrounds and have friends who much prefer the working with people and clients aspect of IBD that you don't get in AM. Depends on what kind of fit you are. I personally love meeting people and working with clients, but am less academic and well read than others.
This is simply not true, you very much get to meet with clients and board members/management in AM, I really don’t know where you’re getting your information from
Don’t know why you got MS, this is very true, I engage with exec team and board of public companies weekly and clients pretty regularly
Don’t know why you got MS, this is very true, I engage with exec team and board of public companies weekly and clients pretty regularly
Following this thread too!
Thanks all, interesting to hear thoughts so far.
Bumping to get more traction.
So then... what do you want to do with your career?
If that answer is ambivalent, or at best a 'well, I'm not entirely sure', I don't think I'd recommend jumping after a year at a new firm to take a pay cut where you are going to have to work twice as hard since you have no experience just to catch up. You have to LOVE what you are jumping to or have a clear minded goal of what the end is for you.
Not to be too blunt here - but the reality is you are 'spending' the difference in compensation to make a career change so think of it as such. An investment if you will. That might make a ton of sense to do it now, while the differential isn't huge, and jump into a great seat at a top tier firm. Assuming it's a viable strategy, you have other options within the firm and there's a history/tenure of progression + opportunity without huge turnover... that's an attractive gig. If you are interested in the work and it's going to make you happier on top of it - who cares about the money as you'll catch up in spades if you throw yourself into it.
But, again, you have to have conviction and commit at least 5+ years to make good on that most likely. Anyway I'm sure you've thought through much of this already, happy to try and be helpful otherwise.
Thanks - this is really useful and certainly even more food for thought. Much appreciated. Agree that for this decision to really pay off I'll need to stay and be hyper focused in this role for at least the medium term (~5 years)
LO AM is the exit opp .... would take the LO offer.
I jumped from IB to LO AM and couldn’t be happier with my decision. The only downside is pay (thought it would be ~25% cut but looking closer to 50% given the banner year in banking). I find LO AM to be incredibly fulfilling and stimulating, but also fairly stressful. The work is very interesting, challenging, and dynamic. There is almost no busy work and very few deadlines. There is a lot of flexibility and autonomy. Most days are spent reading, thinking, debating ideas, joining huddles, writing, or meeting with management teams (the management exposure is significant). The WLB is great. Typically 50 hours a week and no weekends. Hours are also flexible if need be, so I can commit to plans months in advance.
The downside: the work can be stressful and exhausting. You never know what headline is going to come out, you have to be constantly forming an opinion, you have to be completely engaged in the work, there is A LOT of money behind your coverage, and you need to always be tuned into financial news flow. Your job is to constantly learn, connect dots, and put together a thesis before the market does. Sometimes I miss the monotonous banking work where I could check out / listen to music or knowing that I had nothing to do after sending out materials. The work might only be 50 hours, but I feel that it takes multiples more mental energy vs banking. However, these aspects also make the job very fulfilling and rewarding.
Ultimately, I think it comes down to if you see yourself in LO AM. If so, then jump at the opportunity. If you just want to be a PM and have a higher pay ceiling, maybe reconsider. I don’t think LO AM is a job you can do for the money. A lot of my banking colleagues (at senior levels) clearly hated the job but were just in it for the money. In my experience so far in LO AM, it’s the exact opposite. People love the job and love investing. People like spending the weekend reading about their coverage, forming investment views, etc. When you get drinks after work, people talk about management teams and debate investment ideas. If this doesn’t sound appealing to you, I am not sure if you’ll like the industry.
Not OP, but great write-up. Would you please describe how you made the move as well as share some tips for people in the same situation
Probably not the most helpful answer, but luck. I knew that banking wasn't for me and also quickly realized I had no desire to do the traditional path of MF/UMM PE (i.e. banking 2.0). I also didn't want to move to industry (corp dev, etc) because I enjoyed having broad exposure to companies, meeting with management teams, thinking about macro trends, etc. This basically narrowed my opportunity set to HFs and LO AM. My top choice was LO AM given culture, LT orientation, WLB, engaging work, cross-asset collaboration and corporate access. However, I figured it was a long shot given how few spots there are at the big LO AMs and less structured recruiting, so I spent most my time on HF recruiting. A LO AM position happened to show up on a job site one day and now I am here. I guess this is a long way of saying "luck is when preparation meets opportunity."
How much of your happiness do you attribute to your firm itself vs the industry? What’s your advice for going about choosing the specific LO?
Respectfully you don’t “choose” a specific LO. I’m not OP but from what i’ve seen you get in where you fit in. No firm will be clanging to bring someone in from elsewhere as most firms nowadays, the culture is to promote from within. So I say again if you think you can choose which LO firm to work at, you’ll be sadly mistaken, I’d say network everywhere and take whatever sticks.
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