Sales at LO AM vs. MBB
An MBA student deciding between two offers: sales at a top LO AM (e.g., Capital Group, PIMCO, Wellington) vs. MBB.
Curious about your thoughts on the comp trajectory, career progression, WLB and exits. More interested in AM but unsure about the prospect of a sales vs. investment/analyst role.
Based on the most helpful WSO content, here's a breakdown of your considerations:
Compensation Trajectory:
Career Progression:
Work-Life Balance (WLB):
Exit Opportunities:
Key Consideration: If you're more interested in AM but unsure about sales, you might want to explore whether the LO AM firm offers opportunities to transition into investment roles over time. If not, and you're open to broader career options, MBB might provide a stronger foundation and more flexibility for future moves.
Sources: Fork in the road: Career path in Asset Management, The Efficient Career Hypothesis: Almost All Jobs Are Priced In, PSA: Consider Regional Boutiques. Good Comp + Lifestyle, Why are Equity Research and Investment Management looked down upon?, Comp progress at PIMCO + promotion
Can't speak to BB but know many sales folks in the LO world. It probably breaks down into two basic tracks: Institutional (pensions, consultants, endowments, corporates, etc.) and Intermediated ( working with Private Banks, RIAs, wire houses and the independent FAs). These are both great. I don't see either as a path to an investor role, other than to become an investor/CIO type for an independent RIA (know of several who have made that transition. Essentially got hired by a client because they proved their worth as a wholesaler).
Comp is great for both. Institutional tends to be more salary / bonus where as the intermediated tends to pay salary + a % of money raised (in BPS). Depends on the firm. The intermediated guy should ratchet up to 500k+ after a few yrs. Likely start at around 250k. Good ones, depending on comp plan will reach 750k-1M. Know LOTS who have done that. Of course, comp plans and territories change every yr.
An aside, the traditional LOs are feeling tremendous fee compression, moving to active ETFs, SMAs, ALTs, etc. ALTS have far less fee compression as most are in the private credit, private equity and non traded space. Very hot right now and is a major push for most of the major firms. If I were starting out today, I'd probably want to track in that lane or at least have access to it within my product suite.
Apologies for my ignorance. But the $250k is total comp for a 1st year post MBA sales role at a top LO firm? Isn't that higher than the equity/credit research guys?
Certainly depends on the firm. Typical salary will be 175k with bonus and/or commission putting you near 250k. I've seen institutional salaries start higher but they typically don't pay commissions as it's a much longer sales cycle.
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