CFA L2/3 worth it for LO AM / BS ER exits?
Incoming IB analyst at a (lower tier) BB, currently finishing my MFin at a UK target and did my UG at a US target.
I've just passed my CFA L1 and have 5-6 months to kill before hitting the desk later this year. I'm less interested in PE as an exit versus AM / ER seats after my analyst stint. Granted, there's not much opportunity cost in taking L2 now (aside from being able to chill and enjoy the time I have before starting full-time), but I'm trying to assess the incremental upside - does further CFA progress move the needle materially when it comes to getting looks for exits?
If it makes a difference, I'm London-based and intend to stay in the UK for the foreseeable future.
Any and all insight appreciated.
Based on the most helpful WSO content, pursuing CFA Level 2 and Level 3 can indeed be valuable for long-only Asset Management (LO AM) and Buy-Side Equity Research (BS ER) exits, especially in the UK market. Here’s why:
CFA as a Signal of Commitment: The CFA designation is highly regarded in AM and ER, particularly in LO AM roles. Completing Level 2 and progressing toward Level 3 demonstrates a strong commitment to the field and a solid understanding of investment principles, which can set you apart from other candidates.
Relevance to AM/ER Roles: The CFA curriculum aligns closely with the skills and knowledge required in AM and ER, such as portfolio management, equity valuation, and financial analysis. This makes it particularly relevant for these career paths.
UK Market Preference: In the UK, the CFA is often seen as a near-essential qualification for AM roles. While it may not guarantee a job, it can significantly enhance your profile, especially when combined with your IB experience and academic background.
Incremental Upside: Since you’ve already passed Level 1 and have time before starting your IB role, pursuing Level 2 now could be a strategic move. It adds to your credentials without much opportunity cost and positions you well for future exits into AM or ER.
Networking and Job Boards: The CFA Institute’s job board and networking opportunities can also be valuable resources for connecting with professionals in AM and ER.
That said, it’s worth considering your personal priorities. If you value downtime before starting your IB role, it’s okay to delay Level 2. However, completing it now could give you a head start and make your profile more competitive for your desired exits.
Sources: 3 Key Tips for Getting an ER Interview, Q&A: 3rd year ER analyst, Q&A: 3rd year ER analyst, Asset Management Sales - SA and Exit Options
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