Career path from sell side equity research
Hi all. I'm finishing my junior year, about to start a summer internship at a MM bank doing equity research. I'm familiar with the typical path from IB analyst onward (Analyst to PE to MBA to whatever) but does anyone have a similar "path" for a person starting out in equity research as an associate? I'm personally interested in getting a PHD in Finance at some point and/or working at a hedge fund. Things I've picked up (feel free to correct me):
There's less "up or out" in ER at least for associates. I don't think there's any reason someone can't be an associate for 3-4 years at the same bank right out of UG.
PE exit options are a long shot but ER is ideal for L/S Hedge Funds as well as for megafund asset managers.
Plenty of people go from associate in ER to Analyst/Associate in IB.
Its hard to go from associate to analyst at the same bank because most banks have only a handful of analysts covering each sector.
The culture is flatter.
All sounds somewhat accurate.
Accurate but would add that in my view associate to analyst is actually a pretty common transition at one place.
Would depend on the sector, but if you were in a a sector like staples or cap goods you would have several senior analysts because for example in cap goods one would do electricals, one would do mechanicals, etc... plenty of senior analysts where I work actually joined from university and have stayed for 10 years.
Though I imagine that would depend on the bank in question, in the same way that Fidelity and Capital are poles apart in that regard.
A decent amount of people also end up joining the companies they cover in investor relations, corporate finance or strategy roles.
sell side research...dead end path? (Originally Posted: 07/01/2010)
It seems like most people who start in sell side research get stuck doing just that....are there any exit opps?
rarely, do i ever see someone go into the buy side or somethign like business development
Please share your extensive experience you draw upon to make this claim of ER folks rarely moving into something else.
Second that rjroberts. I knew from the title that this would be a joke. Have you ever heard of a hedge fund PM nyc-matt? Sell side research is tremendously rewarding once you reach analyst. So 1st: many people that enter the field hope to be "stuck" doing it but with a repuation and following that they have developed. And, 2nd: equity research is probably one of the most versatile positions as far as exit opps. The skill set is applicable to many jobs across finance.
sorry for a stupid question, but sell-side vs. buy-side in ER, whats the difference? I mean I know buyside is for actual transactions but what are sell-siders doing? just giving reports/
use the search function people...and the sell side is not dead, at least not according to my mid-year bonus.
lol, this thread is ridiculous. Trolls?
how difficult is it to make analyst? Do you need an MBA?
Yes and No - it really depends, in my opinion. Some shops hire post MBA's as associates, and after several years of assisting an analyst will be promoted to analyst. Some pre-mba associates pick up coverage on a few names of their own (maybe 3-5) after a few years, which is a good path towards becoming an analyst.
Other shops hire associates right out of undergrad for several years and will promote them after ~5 yrs to analyst.
Some analysts leave their firm for another firm or the buyside and his/her associate could be offered the analyst spot assuming he/she doesn't go w/the analyst to the new firm.
It really depends on a ton variables including your shop and analyst's style. If you got CFA then it takes the place of the MBA for sell side ER, in my opinion. There's so much to it including luck.
Esse sit iste tempora. Est libero enim reprehenderit distinctio delectus voluptatum. Non numquam ut sit non ut quis vitae. Voluptatum ducimus ducimus quia animi rem animi sit autem.
Et nesciunt sint iste atque odio. Voluptatibus eum aut voluptatem. Sint minima accusantium autem velit sint. Quae est ut ex enim. Amet mollitia aliquam doloribus voluptas earum.
Laudantium in in cum nisi aut est aut. Dolor eligendi maiores qui. Ullam natus mollitia sit fugiat quod et et quasi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...