Large AM ER vs BB IBD

Based on the most helpful WSO content, here's what you need to know:

1. IBD vs. AM ER for Exit Opportunities:

   • IBD: Investment Banking is a clear winner if your goal is Private Equity (PE). PE firms heavily favor candidates with IB experience due to the transaction-heavy skillset developed in banking. Additionally, IB provides a broader range of exit opportunities, including PE, Hedge Funds (HF), Corporate Development, and even Asset Management (AM).
   • AM ER: Equity Research within a large Asset Management firm is a strong contender for Hedge Funds and AM roles. ER provides deep market knowledge and direct exposure to the buy-side, which is highly valued in HF and AM. However, transitioning to PE from AM ER is rare due to the divergence in skillsets (public markets vs. private markets).

2. Work-Life Balance:

   • AM ER typically offers better hours (60-70 hours/week) compared to IB (80-100+ hours/week). If lifestyle is a significant factor, AM ER might be more appealing.

3. AUM Considerations for AM:

   • For strong exit opportunities, the fund's AUM matters. Large, reputable AM firms with significant AUM (e.g., T. Rowe Price, Fidelity, BlackRock) are highly regarded. While there’s no strict "minimum," funds with substantial AUM per analyst/PM (e.g., $1B+ per analyst/PM) tend to offer better exposure and credibility for exits.

4. Long-Term Perspective:

   • If you're aiming for PE, IB is the better route. For HF or strategic corporate roles, both paths are viable, but AM ER might give you a slight edge for HF due to its focus on public markets and decision-making with incomplete information.

In summary, if PE is your primary goal, go with BB IB. If you're leaning towards HF or AM and value better hours, AM ER could be a great choice, especially if the fund is well-known and has significant AUM.

Sources: AM vs HF: The Business of Our Business, Exit-Ops: Equity Research vs. Investment Banking - (A Definitive Guide, Part 2), Asset Management vs Investment Banking for exit opps into value-based hedge funds, AM vs ER vs IBD, Breaking into long only Asset Management