Moving back to IB / finance?
Spent ~15 months in IB before switching to a strategy role. Learning a lot in my current role and though it is not really directly related to my past banking experience, this was the path I wanted to go longer-term. Lately been thinking about potentially moving back to more typical finance roles. Main reason being while I like my team and there is room to grow in a direction I would like, I think the progression potential is still much faster back in traditional finance fields. Know the finance job market is terrible right now, but would it be possible / would it make sense to try to go back to IB sometime in 2023 when hopefully there's a better lateral market than right now, build up that experience a bit more (get through at least associate promotion) and reassess? I think IB is the only move I would consider as any other type of high-finance move seems like moving around too much too often, while going back to IB is at least something I know what I am getting back into. Even though I have IB experience, is it even possible to lateral to a bank again or will someone currently in IB always get the position for analyst lateral positions? I could also try to move corporates but honestly miss the pace of more traditional finance and would like to get back on a fast-track again if I can.
Bump
You’ll be fine. I rage-quit an IB job, spent over a year working on random biz ideas, went back directly into IB at a better bank than the one I left and then moved over to PE. The lateral market is rough right now and not what it was when I made my moves so I’ll caveat that it will all depend on how long this soft market lasts but it won’t be your background that holds you back.
Hey appreciate the response and your experience. Was your move back during 2021 during the crazy hiring spree? Only reason I ask is because I know right now is an especially bad lateral market but not sure what to expect in a "normal" environment. Feels like even though I have strong deal experience, there'd always be current analysts lateraling that would be more preferred candidates. Also wanted to ask how your networking and interviews went in terms of explaining why you left and why you're coming back in both going back to IB and then also to PE. I feel like my reasons are pretty valid but also kinda worried about the job hopping reputation especially for not completing two years in IB first.
Just wondering how was your background perceived in networking and interviews in terms of doing something else and then going back to IB?
I'm actually in a very similar boat. Left IB at about the same time in the job (a little over a year) and went to a strategy role at a mid-sized corporate. The progression in pay/seniority on this side is much slower and it has me thinking about going back to IB and slugging it out for a few more years.
Have you thought about recruiting directly into PE roles at all? That is also something I am considering.
Hey, I haven't really considered it mostly because (1) going back to banking seems less like "hopping" around a bunch especially how quickly I've made these jumps. I also know exactly what to expect if I go back to banking. (2) If I can go to a "reputable" sized bank, I think the learning opportunity is better in banking where there's a pretty big funnel with a lot of juniors and associates I can keep learning from vs. most PE firms if I target any right now would probably be LMM and very lean. I think there's still more technically I can learn in a structured banking setting. It seems like going to reputable banking should be easier especially given direct experience (with relatively strong deal experience) whereas I don't even have the 2+ year IB stint that most PE places are looking for.
Just wondering, have you reached out / applied for IB / PE and what has any responses been looking like?
Yeah, your reasoning makes sense. I've just now started to talk to folks in my network about IB/PE. Responses so far have been mixed (as you might expect), but that means that ~50% of people are open to it and see the story / understand where I am coming from. Ultimately I think I have just have to be flexible and opportunistic. I do believe banks are still hiring laterals despite the confirmed layoffs in the fall.
I’ve done it. Did 6-7 yrs in banking, 4 yrs in corp dev then went back to banking, and then left again. Corp dev makes you a better industry banker bc you have a much more in depth understanding of the space, broader network of relationships to bring deals in, and you can relate to clients better
Contrarian view: don't do it. Whatever reason caused you to leave IB probably has not changed.
The only time I think going from IB to corp dev and then back to IB makes sense is if you want to be a coverage banker. Spending even two years in a corp dev role will make you much more knowledgeable about the industry that you are in than 99% of coverage bankers covering that same industry. Otherwise, sure, you are going to probably double your salary, but the hours, types of bankers you deal with, etc. (i.e., why you left banking in the first place), will still be the same.
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