DivFin ER exit opps to buyside?
Hello, sorry if this is a silly question but if you were to cover DivFin (ie asset gatherers, wealth managers, etc)--would that impair your chances of getting a buyside seat? How do fund mandates work and do they typically invest in other asset gatherers or would that be a bit counterintuitive/any compliance issues? Sorry not too well versed and have a few interviews in a DivFin team ahead but ultimately want to end up on the buy-side (ideally L/O).
Appreciate any insights and how exit opps in DivFin differ from broadly doing other niches in financials (eg Insurance/Banks)--thank you!
Based on the most helpful WSO content, here are some insights regarding exit opportunities from a DivFin (Diversified Financials) role to the buy-side:
Exit Opportunities from DivFin to Buy-Side:
General Transition Feasibility:
Fund Mandates and Compliance:
Comparison with Other Financial Niches:
Key Considerations:
Additional Resources:
Good luck with your interviews and your career transition!
Sources: Breakdown of Post-IB Exit Opportunities, Asset Management exit options vs Investment Banking, Asset-Backed Finance & Capital Markets Exit Ops from BB, "Exit Opps" and the sequential nature of early finance careers, Exit opps for Structured Finance/Securitization?
My understanding is they would invest in every stock but their own, so your coverage universe shrinks by one but it’s not like the buy side doesn’t invest in the sector - just look at the institutional ownership for St James Place or something. If the buyside didn’t invest in the sector, the sellside wouldn’t cover it.
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