Early career insurance AM - should I just thug it out?
Joined large insurance asset manager out of non-target undergrad, LO fixed income; and enjoy the work, low stress, and my seniors are incredibly smart and have the typical high finance pedigree. However, the pay is not great and the location is not as exciting (lame, but I want to move to NYC like many young people). Have been trying to look and network into roles in S&T (which I also think would fit my interests in investing better) and other asset managers, but haven't been getting much traction. The pay eventually gets good, and it's a doable reverse commute, should I just shut up and grind? I have a pipe dream of working at a HF one day, and seeing all my friends in banking blow out my comp and live in NYC does suck a bit (even if I think my work is more interesting). Anyone start in a similar role and move? Interested in just seeing what options are out there.
Based on the most helpful WSO content, your situation is not uncommon, and there are a few key points to consider:
Insurance Asset Management as a Stepping Stone: While insurance AM may not have the allure of NYC or the pay of banking, it offers a solid foundation in fixed income and portfolio management. These skills are valuable and transferable, especially if you aim to pivot into other areas like S&T, hedge funds, or even broader asset management roles. Many professionals have successfully transitioned from insurance AM to more dynamic roles by leveraging their expertise in fixed income.
Networking and Skill Development: If you're not gaining traction in your job search, it might be worth revisiting your networking strategy. Focus on building relationships with professionals in S&T or hedge funds, particularly those with similar backgrounds. Additionally, consider enhancing your skill set with certifications like the CFA, which is highly regarded in AM and HF circles.
NYC and Compensation: It's natural to feel the pull of NYC and the higher comp in banking, but remember that lifestyle and job satisfaction matter too. Your current role offers low stress and exposure to smart colleagues, which can be a rare combination in high finance. If you’re set on NYC, keep networking and applying, but don’t discount the value of grinding it out for a few years to build a strong resume.
Hedge Fund Aspirations: Breaking into a hedge fund often requires a combination of technical skills, a strong network, and relevant experience. Your fixed income background could be a niche strength, especially for credit-focused funds. However, transitioning to a hedge fund might require an intermediate step, such as moving to a more traditional asset manager or S&T role first.
Perspective: Comparing yourself to friends in banking can be demoralizing, but remember that career paths in finance are diverse. Banking offers higher initial comp but often comes with grueling hours and burnout risks. Your current role might provide a more sustainable path to long-term success.
In summary, while it’s tempting to make a drastic move, grinding it out in your current role for a few years could position you well for future opportunities. Simultaneously, keep networking, refining your skills, and exploring options to ensure you’re ready when the right opportunity arises.
Sources: Fork in the road: Career path in Asset Management, Top 10 Undergrad, Top 10 MBA... Unemployed 3 months, 2 not great offers to decide between, Exit opps from AM?, Life decisions...buy-side equity analyst, https://www.wallstreetoasis.com/forum/asset-management/will-asset-management-industry-just-wither-away?customgpt=1
What is your specific role today - is it part of the investment team as an analyst or something similar?
If you like the work and are getting meaningful experience - your best option may be to stick it out for a few years while you continue to network and/or apply for other roles you like. I have a good guess as to where you are at - you should have plenty of options in the LO AM Insurance space with better locations - northeast and/or Chicago come to mind - there's only so many players in that space and you'd have immediately relevant experience after a few years.
Are you in Des Moines? And could you give a ballpark of what firm? Are you IG only?
Atlanta? Just started a similar role, but seems like theres options to lateral in my firm if I decide to stick it out.
This is interest/skill agnostic so adjust on basis of that:
1.) HY/leveraged loans? Thug it out for a bit then see options externally at junior level suit you as will be there at HF/sellside/higher prestige long only if you're good vs. will see still decay if stay bc they will not do CCCs/low single Bs so your skill gap will increase vs. peers
2.) Structured? Thug it out esp if have a chance to make PM down the road (look internally/externally) as these folks run huge books in this and pay/cost of living + stress v solid if make PM (plus more resilient to AI imo)
3.) IG? if research do a brief stint and bounce as soon as you can as this will be super commoditized with AI (note this will get a lot of "prominence" internally but don't be fooled); if on the trading/portfolio analyst side this is a bit closer to structured but not as safe bet as structured
4.) EM? pretty much ditto to HY/LL with even more internal irrational hate
5.) Generalist "Insurance Asset Management" type roles: bounce if you're not comfy playing the internal politics ladder and willing to take any role the top dawgs see fit...note can be successful doing this but you're a price take career role wise
5.) Private placements? ditto structured tho have to be good with this as not transferrable
6.) General privates: this is really sub-asset class as will mostly be a manager research role UNLESS you are focused on real estate then ditto structured/private placements as optionality can do your own deals later on (avoid HF/PE as these are just manager due diligence roles without transferable skills)
Very very helpful, ty for the detailed breakdown
Got a question to build of this. Just started a role in the what we'll say is the "generalist" insurance AM side, very close to the investments but client facing as well. Graduated from a state school with the rep of a huge party school so this is a great opportunity, but I want to be cognizant of my options going forward.
If I decided to take my career towards more "pure AM" shops, what do you think is the best path forward. Stay at my current shop and lateral into IG or structured (Seems to be common)? Or get some experience and apply to fixed income roles at other AM shops?
Kudos to your for realistically evaluating your current outcome while also thinking of a future path to a better outcome...I can respect that. Honestly, the best option (which worked for me tbh) is to "work on every path and try for everything"...then evaluate what your actual options/trade offs are when they materialize...everything is just a kinda useless hypothetical until then. For you I think that would mean:
1.) are you a sales oriented guy? can be v successful and often these types end up being AM CEOs if so continue
2.) regardless you should probably bone up technical skill just how hard you go depends on answer to 1/how quant oriented you are (if answer to 1 is not sales obviously go harder)
3.) I would try for the internal lateral as with the state school you say this is easier/will get a better "exit" down the road (a few years extra internal is nothing over a carrer
4.) once in that role see if that path is better than external (imho a big insurance lead IG PM has a better career EV than a hedge fund credit analyst...of course controversial and dependent on a ton of factors including COL location but food for thought)...also have to discretely feel out what you can get externallly
5.) you may have to level up your credentials...if staying internal CFA could be enough (not useless for this outcome); i really hesitate to prop MBAs at this point for many discussed reasons (Princetoin MFin diff story)...sweet spot may be some kind of part time program from a decent school (UNC/NYU MBA im sure others out there) assuming you can get interviews needed (I know bad rep state school grads that went weak insurance credit => decent long only credit => decent HF credit without extra school so it depends)
Good luck!
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