How can I break into Equity Research/Credit Research? Need some career advice - have worked in AM in various roles but not research.
I graduated from Warwick in 2022, did a spring week at a BB in 2019 but didn't convert it.
I've spent 2 years doing jobs at various AMs including one classed as 'FO' but have never managed to 'break' into a research role.
I've had several interviews and final round interviews in 'research' roles as well as IB roles when I was in university as well as over the past 2 years but none have been successful.
My parents are convinced that going to LSE is the difference between me not getting a role in FO Research and getting one.
Is it worth me doing a MSc in Finance at LSE to get a FO Research role?
How guaranteed is it that I'd get a FO Research role after doing a MSc in Finance?
I really don't want to spend £40,000 if I'd still be stuck in the same position.
My parents are convinced that it will make the difference when interviewers are doing their selection processes.
Based on the most helpful WSO content, here are some insights and advice regarding your situation:
Breaking into Equity Research/Credit Research
Educational Background and Work Experience:
MSc in Finance at LSE:
Alternative Strategies:
Interview Preparation:
Conclusion
While an MSc in Finance at LSE could potentially enhance your profile and provide better networking opportunities, it is not a guaranteed path to securing a FO Research role. Weigh the costs and benefits carefully and consider alternative strategies such as certifications, networking, and targeted applications to improve your chances.
For more detailed discussions and advice, you might find the following threads on WSO helpful: - https://www.wallstreetoasis.com/forum/school/2018-uk-target-uni-msc-for…</a">MSc Finance Profile Evaluation (LSE Finance, LBS Financial Analysis, Oxford Financial Economics) - https://www.wallstreetoasis.com/forum/school/2018-uk-target-uni-msc-for…</a">Chances of getting into LSE MSc Finance/LBS MFA
Good luck with your career journey!
Sources: 2018 UK Target Uni - MSc - for FO jobs: put your POV, MSc Finance Profile Evaluation (LSE Finance, LBS Financial Analysis, Oxford Financial Economics), https://www.wallstreetoasis.com/forum/school/uk-master-in-finance-advice?customgpt=1, 2018 UK Target Uni - MSc - for FO jobs: put your POV, Chances of getting into LSE Msc Finance/LBS MFA
Posted in non-UK hours so bumping for visibility.
I agree with your parents, having a second chance to recruit is most likely your only way in. I don’t know anyone in research who didn’t break in straight after graduating, completing accounting exams, 3+ years at a rating agency or moving in from the sell side. You can also apply to SS ER/CR to increase your chances.
Let's say I do a masters at LSE, how certain would it be that I'd get an internship in research afterwards?
That's the issue I'm having with doing a masters - what's the probability that I'd spend £40,000 and get nothing?
Because I've had so many buyside research final rounds (both equity and credit) over the past 2 years and it's ended up with no results. I don't want to end up in the same position but £40,000 down.
There are other masters at LSE that cost a bit less, for example Statistics costs ~£30k, and Economic History is about £18k. It will still give you the LSE name and give you a chance to recruit again. As the other commenter mentioned, you may not fall into the requirements to complete a summer internship, but you could do an off cycle.
The main issue is the availability of these programmes, there are very few buy side seats in London right now, and the opportunity cost of completing the masters and not working for 1+ years is over £100k. See if internal mobility at your current firm is possible, or complete the masters for 2025 entry and go for IB alongside research.
So there are very few buyside ER/CR seats for grads in London. On the long only side, very very few exist and I would not peg anything on getting them (or one at a half decent shop) because you have so few chances to do so. On the HF side, the competition is fierce and again there are probably 10-15 seats total for new grads. The most common route into buyside ER is through sell-side. On sell-side, yeah maybe an MFin makes a difference but there's this awkward logistics thing where your best shot is via internships but some masters programs don't finish in time for internships. I think LSE does but you'd have to check.
For credit, idk. Id say there are even fewer seats around. Most credit stuff is also on private side, so tends to require some IB experience - at least an internship.
It's worth noting also that the recruitment market for research right now (and for the last 2 years) sucks. It's really no surprise you've struggled to find anything because there's nothing to find.
Hey dude, thanks for commenting. Appreciate it - you're also very active on Reddit and everyone appreciates your advice man!
Let's say I do a masters at LSE, how certain would it be that I'd get an internship in research afterwards?
That's the issue I'm having with doing a masters - what's the probability that I'd spend £40,000 and get nothing?
Because I've had so many buyside research final rounds (both equity and credit) over the past 2 years and it's ended up with no results.
There's no certainty in any of this. All I can tell you is your chances would be better. In what way that would materialise is anyone's guess. E.g. if you're already getting interviews then it might just mean that you get more interviews. The chances are, what school you went to only has a marginal impact on your final round success.
Try taking level 1 of CFA?
Done Level 1. Planning on doing Level 2.
Hey, I'm in a very similar position to you, having graduated from Warwick in 2023 with a degree in Mech Eng, completed a few internships and just about to start a Masters in Finance at UCL. Looking to break into AM too after doing a internship at a small AM (roughly £1 Billion).
From my point of view, I think that a masters degree in a relevant field is invaluable and will add weight to your application, especially if your are planning to go to LSE. That being said, and I'm in a similar situation to you right now, self prep for interviews and technicals for roles will make the difference.
It also seems that you are struggling with interviews much like myself. If your have friends or family where you can practice over and over again it can be very useful. Also, an advantage of going on to do a masters is, as you mentioned having another application cycle, but also that you will be able to use their careers service to further practice interviews and refine your CV and cover letters. Additionally, you will meet people on your course and in societies which will give you insights into the industry or even connections to jobs you want.
I would also say that you should have some backup options in terms of what industry you want to work in. Maybe look at consulting, insurance or S&T?
Recruiting for public equity/credit is non-existent right now. Only alternatives/private credit seem to grow headcount but for that you need deal experience. A graduate scheme at a big 3 rating agency is more likely in your case.
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