Oct 20, 2024

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!

10 Comments
 

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:

  • Training and Development: BB firms like Citi, JPM, and BofA are known for their structured training programs, which can provide a solid foundation in finance.
  • Optionality: Starting at a BB can offer more career flexibility. You can transition into various roles within the bank (e.g., equity research, capital markets) or move to other sectors outside of finance.
  • Networking: Larger networks and exposure to a variety of deals and clients can be beneficial for long-term career growth.
  • Work-Life Balance (WLB): While BB roles can be demanding, they often provide a broader range of exit opportunities, which might include roles with better WLB in the future.

MM Private Credit (PC):

  • Specialization: Starting in MM PC can provide early specialization in a niche area like Direct Lending, which can be advantageous if you are certain about your career path.
  • Work-Life Balance: MM PC roles might offer better WLB compared to traditional IB roles.
  • Learning Opportunities: While banks are known for their training programs, MM PC shops can also offer valuable learning experiences, especially if you are interested in credit analysis and direct lending.
  • Pigeon-Holing: There is a risk of becoming too specialized early on, which might limit your career options outside of private credit.

Considerations:

  • Career Goals: If your goal is to work in MM PC long-term, starting directly in that field might make sense. However, if you value optionality and broader career opportunities, starting at a BB might be more advantageous.
  • Training Quality: BB firms generally have more established training programs, which can be beneficial early in your career.
  • Interest and Fit: Consider where you will be more engaged and interested in the work, as this can significantly impact your job satisfaction and performance.

Summary:

  • BB Corporate Banking: Offers better training, broader career options, and larger networks but might come with a more demanding workload.
  • MM Private Credit: Provides early specialization, potentially better WLB, and focused learning in credit but might limit broader career opportunities.

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

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Bump.

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).

 
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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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