Does ER Have Corporate Finance Exit Opps?
Hi,
So basically, I have narrowed my interests to 3 areas: equity research, long-short or fundamental/deep value hedge funds, or corporate finance. I know that equity researchers can obviously continue to be in ER and typically do well in terms of exiting into long/short or value hedge funds (correct me if I'm wrong on the hedge fund part), but would it be possible to do ER and then exit to a financial executive position at a F500 company? I'm particularly interested in infrastructure or energy companies, so would having deep industry knowledge plus, for example, a CPA and a finance degree be good enough to switch to corporate finance? Are there any skills that I would learn in ER that may benefit me in corporate finance, or is traditional M&A banking the only way to get experience in that?
if your goal is corporate FP&A, ER isn't a great stepping stone, not necessarily because the nature of the work but because of how it's viewed
I'm not just interested in FP&A. I'd also enjoy corp dev or corporate treasury. I bet treasury would be tough but what about corp dev?
And how is it viewed?
I know several ppl who moved from ER to corp fin in the energy sector. Unfortunately some of them ended up in the IR role... but in general its not difficult; in ER you know the companies you cover in and out and management knows that. You also speak with these people and build relationships, shouldnt be too hard to feel around should you want to jump ship.
errr what is IR?
Investor Relations
What does the Investor Relations function do? Would ER have any skills transferable to capital budgeting type of work or corporate development? Those are my primary areas of interest in corporate finance along with maybe treasury
How would you get a CPA doing ER?
M&A is the way to go for Corp Dev bro.....that is pretty much exactly what they do, except less hours, less pay, likely less deals, and work for a corporation instead of a bank. 99% of Corp Dev folks are ex bankers who want a more chill job.
Pay sucks in corporate development
It is easier to go to a company in the sector you cover from ER than it is to go to a hedge fund, in my experience anyone who wants to go work in their industry has gotten a job with relative ease, it is far more difficult to get a buyside job in my opinion. I've seen this happen a number of times with ER people going to relatively high levels within small cap companies in particular, a little more difficult if you are talking 40 billion+ large cap companies, you can still get a job there it just won't be anywhere near C-level with the exception of being head of IR, not a bad job by the way.
ER to corporate finance Question (Originally Posted: 11/03/2012)
There was another topic on this today, but I was wondering how common it is on either the buyside or the sell-side for an ER person to move into a corporate finance role. Basic research on this site says common moves are to either IR or corporate development positions, yet research on the IR roles say that they are more PR bent. Does anyone have any experience with that and what motivating factors would be, other than lifestyle change?
I'd imagine that the move from ER to a corporate role would be more attractive at the executive level, and that moving from the sell-side into the corporate role would be more likely than the a buy sider doing so.
Are these statements accurate, or am I way off base on that? (My question stems from the Goldman consumer analyst moving to be a CFO in September (http://dealbook.nytimes.com/2012/09/12/goldman-analyst-headed-to-david-…))
Thanks!
Saying she's an analyst is entirely misleading...I think once you're MD just about anything is possible.
"The analyst, Adrianne Shapira, a Goldman managing director, spent 13 years at the firm and covered retail companies like Target, Best Buy, Macy’s and J.C. Penney. She will step into her new role at David Yurman on Oct. 22, the jeweler said in a statement."
What the fuck are you talking about? The is so much wrong with everything you wrote.
ER exit ops into corporate finance (Originally Posted: 03/08/2013)
What specific positions, apart from investor relations, do ER associates move into if they decide to head over to one of the companies they have been covering? Curious because I couldn't really find anything specific about it. Thanks
Here is what I have seen. These are ranked by most common to least common, and it of course depends on what shop you're at.
Asset managers - Wellington, Fidelity, etc - this is VERY common at my shop as we are more value, long-term oriented. I'd say 60% of our leaving associates do this.
HF - Probably 30% of our guys go to HFs, all different strategies.
Different sellside shop - 10% go to other sellside research shops.
I don't know a single associate at my firm who has left to go corporate, nobody really wants to take the paycut.
many thanks for your answer newfirstyear
any insight on the compensation? also, how much less do you mean by saying paycut
thanks
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