Buyside Small Cap ER

Im in UG and currently in the interview process of a buyside small cap ER opportunity, fund size $100-500M. 

How does small cap ER differ from the large caps in terms of processes? I believe most of the small caps are not cash generating thus DCF is not/rarely used, so comps are more common?

Is small caps one of those pigeon-holes in ER? Im a student and really dont want to limit my opportunities in the future. I haven't done any ER internships before so i dont know if I'll like it or not, but right now my goal is to ultimately land in IB/AM.

I also want to know how favorable will recruiters look at this experience when I recruit for IB or AM later on. 

Cheers

12 Comments
 

Thanks.

If you want to keep your options open, frankly go do IB.

My logic is that when I recruit for IB, I could spin it as a "buyside front office gig".  

AM is the exit opportunity so they would prefer someone who is super committed to the profession (as most buy-siders are). 

I should clarify I meant AM/principle investing at BBs. Would this ER gig help making this transition? 

 
Most Helpful

I suspect you have a foundational misunderstanding of IB vs. AM, buy-side vs. sell-side, etc. 

IB people know AM is a front office gig and bankers are aware AM is the exit of IB, not the other way around, so they will want to understand why you decided not to stay or could not stay in AM where comp trajectory and work balance are better and intellectual stimulation is stronger. 

AM at an investment bank is less coveted than a standalone partnership-based asset manager like Fidelity and Wellington. Threads in the AM sub forum discussed this topic. 

 

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