Any downsides to starting out as an Analyst in MM PC as opposed to Corporate Banking (CIB) at a top BB?
Currently set to join one of Citi, JPM, BofA as a Corporate Banking (CIB) analyst after school. My goal immediately after banking was MM PC anyways, so if I hypothetically had an offer right now at a MM PC shop (eg Direct Lending at Antares/Golub/Blue Owl, etc.), would I be silly not to take it? I have absolutely no interest in PE/HF and am more focused on a role that provides decent WLB, allows me to learn a lot/is interesting, and still earn good money. It seems like starting in IB is generally the better move vs PE, so does the same logic apply here? The only reservation I have is that I feel like I may pigeon-hole myself early, whereas if I started as a banker at a BB, I’d have more optionality especially outside of finance. I’ve also heard that banks typically “train” a lot better than private funds, is this true? Tldr: What, if anything, would I be missing out on starting out in MM PC vs BB CB? Thanks!
Based on the most helpful WSO content, here are some key points to consider when deciding between starting as an Analyst in MM PC versus Corporate Banking (CIB) at a top BB:
Corporate Banking (CIB) at a Top BB:
MM Private Credit (PC):
Considerations:
Summary:
Ultimately, the decision should align with your long-term career goals, interests, and preferences for work-life balance.
Sources: IB post MBA, am I missing something?, https://www.wallstreetoasis.com/forum/investment-banking/qa-md-in-ma-and-capital-markets-with-bulge-bracket-and-boutique-experience?customgpt=1, Q&A : Credit (DL, SSG), Some Observations from an MD, Deutsche Bank vs MM SA 2021
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blue owl? work life balance?
Friday WFH, whole month of August WFH. How can it be that bad with those perks?
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if PC is your goal, theres no reason to go corp banking then try and break back into PC. You're not missing anything by going straight to PC.
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I would say that if your end goal is PC, then do PC.
BB corp banking is coverage so you’ll not only be looking at credit/lending stuff - but also bonds, treasury sales, derivatives, etc (which might be something you like / or not).
Stay away from regulated capital. I wouldn't recommend anyone taking CB over PC if they're a 1st year and have a PC option and know they want to do credit investing as a career. The administrative and regulatory-driven BS in banking gets worse and worse every year, and you will see much more exciting and interesting opps in PC.
But to answer your point as to what you'd be missing out on by not going to CIB:
1. You're correct that large BB's offer tremendous amounts of resources and structure. You will likely have more cushion to struggle and get your feet under you at a BB for the first 18 months than you would at a PC shop. You'll get exposure to the whole suite of loan and banking products, which would help if you ever wish to take a treasury or CFO-type role or do anything in finance outside of credit. You will attend a multi-week credit training program at any reputable bank.
2. Comp in CIB will likely be less volatile than PC, with PC being on average probably 10-20% lower than CIB until you're at a mid-to-senior level at which point PC would be more lucrative.
3. BB's offer really great lateral opps. If you're a decent performer, after 1 year you'll have the opportunity to lateral to another group. I have numerous examples of people lateraling to levfin or coverage. Around 30% of interviewees I meet with are laterals and most banks push lateral opps hard.
4. Even if you don't want to stay in banking or even finance, having the BB's name on your resume will open more doors than MM PC. It's more "prestigous" if you care about that sort of thing (you shouldn't).
Even though I'm too senior and don't want to take the paycut, I still find myself thinking about leaving for PC constantly given the admin/regulatory headaches I previously mentioned...
Take all this with a grain of salt since I've never worked in PC.
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