Stay in SS Credit, try RX, or go back to MBB?

FT recruiting is kicking off soon, and I've been thinking a lot about what direction I want to take my career after college. Right now, I'm thinking of either staying in special sits credit, re-recruiting for RX IB, or going back to MBB.

For context, I'm an international at a large state school doing a STEM degree (so 3 years of OPT thankfully). First year summer, I went back home and worked at a large IB's distressed debt arm (mostly non-performing loans, team was a mix of portfolio management and execution/recovery). Following summer, I did a short MBB sophomore program and then worked at a startup PC shop that invests across the cap stack. This year, I also locked an offer for another special sits credit shop; we'll see how that goes.

Ultimate goal (other than getting a green card lmao) is to become an investor of some form, but not really sure of what type (distressed, vanilla PE, PC, etc., but prob not publics). I could also see myself being an operator (CEO/business owner) but I feel like that is a longer shot.

While I really like investing and the SS market is growing crazy fast, the fact that it is such a unique opportunity also makes me worried I'll get pigeonholed, which will suck if things go south and I can't get a job immediately after. 

Been also thinking of trying RX IB again for the added optionality and the skillset, but that might be tough as an international. Alternatively, I sorta feel like MBB gives the most optionality out of the three/de-risks my career in exchange for the steeper uphill battle to break into investing again. I also kinda like the strategic aspect of consulting, and that could be a good skillset and network to have later on.

Would really appreciate any and all thoughts on this. Really enjoyed reading some other career-advice posts in the forum, and this would help me sanity-check what I should be doing for FT. Thanks!

5 Comments
 

Based on the most helpful WSO content, here’s a breakdown of your options and considerations:

  1. Staying in Special Situations Credit:

    • Pros: Credit is a growing market, and your experience in distressed debt and special sits credit positions you well to build a niche expertise. If you enjoy the work and see yourself as an investor in this space, staying could allow you to deepen your skillset and network.
    • Cons: As you mentioned, there’s a risk of being pigeonholed. If the market slows or you decide to pivot, transitioning to other areas like PE or PC might be more challenging without broader experience.
  2. Re-recruiting for RX IB:

    • Pros: RX IB offers a strong skillset in financial restructuring, which is highly transferable to distressed investing, PE, or even operational roles. It also provides optionality to pivot into other areas of IB or buy-side roles.
    • Cons: As an international, breaking into RX IB could be tougher due to visa sponsorship challenges. Additionally, RX IB can be intense, and you’ll need to weigh whether the added optionality is worth the grind compared to staying in credit.
  3. Going Back to MBB:

    • Pros: MBB provides the broadest optionality and a strong network. It’s a great platform for pivoting into investing, corporate strategy, or even operational roles. The strategic skillset and brand name can de-risk your career and open doors to diverse opportunities.
    • Cons: Breaking back into investing from MBB can be an uphill battle, especially if you’re targeting niche areas like distressed or special sits. You’ll need to actively network and position yourself for buy-side roles.

Key Considerations:

  • Ultimate Goal: If your long-term goal is to become an investor, staying in credit or transitioning to RX IB might align better with that path. However, if you’re still exploring and want to keep your options open, MBB could be a safer bet.
  • Visa/OPT: As an international, consider which path offers the best visa sponsorship prospects. MBB and larger IBs might have more established processes for internationals compared to smaller credit shops.
  • Optionality vs. Specialization: MBB offers the most optionality but requires a proactive approach to pivot back into investing. Credit and RX IB are more specialized but align closely with your goal of becoming an investor.

Suggested Path:

  • If you’re confident in your interest in credit/distressed investing, staying in special sits credit or transitioning to RX IB could be the way to go. RX IB, in particular, offers a broader skillset and optionality while keeping you close to your investing goals.
  • If you’re still exploring or want to hedge against market risks, MBB provides a strong fallback and the flexibility to pivot into various roles. However, you’ll need to stay focused on networking and positioning yourself for buy-side opportunities.

Ultimately, your decision should balance your long-term goals, risk tolerance, and the visa/job market dynamics. Good luck with FT recruiting!

Sources: https://www.wallstreetoasis.com/forum/consulting/should-consultants-get-an-mba-8-scenarios-to-consider?customgpt=1, Why do MBAs seem to favor consulting over banking nowadays?, The Case for Taking a Banking Attitude to Other Industries, Q&A: Deloitte S&O -> F500 Corp. Strategy -> M7 -> MBB, Q&A: The Future/Current State of S&T - BB VP Macro Trader

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