First-time poster. Started in SS ER at a BB out of college and now 6/7 years out. Figured I could share some observations on where my analyst classmates currently are to hopefully give some insight into exit opps and career paths for folks trying to decide if ER is for them. Will try to balance being high level to protect identities with giving informative content.
Where they are now:
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45% at hedge funds (almost all big MM)
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20% still in SS ER (mostly BB)
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10% in tech corp fin roles
The final 25% is fragmented between:
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Long Only AM
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VC
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Consulting
Additional Notes:
-Keep in mind that these roles are where they are now. Not all are still in their first role post ER, but pretty much all the functions listed represent the initial exit opps on offer (except b-school).
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In all 25% of us did B-School before transitioning to new roles. Mostly M7 programs.
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The pull towards HF is very real after 2yrs in ER, but 90% of those seats are short term multi managers.
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If I had to guess, I'd say the HF crew is less happy on average than the rest, but they're generally making more as well.
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LO gigs are rare. Much harder to break into than HF. Generally seen to offer better lifestyle / job security.
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Everyone is doing well for themselves. ER has some major structural challenges but can still be a great place to learn and gain exposure, esp if you cover the right space.
Thanks for sharing, SB'ed. On the b school exits, were any of the exits straight from ER or were most 2+2? Also, would you be able to comment how AM/ER is perceived (especially for H + S) vs. the IB/PE path?
None were 2+2. One was ER -> LO -> H/S. The rest were straight from ER. In general I'd say ER is comparable to IB and AM is comparable to PE.
Buyside gives you a better shot at H/S than sell side imo, but I don't perceive a meaningful difference between public vs private market.
Have also seen people go straight from ER to H/S fwiw. And again pretty much everyone is M7. At a certain level the biggest factor is often the person and their story not the title.
I'm so lost with all the abbreviations. What's 2+2 and LO and H/S, please?
Depends on what / how you want to learn.
Sell side will give you a more structured learning environment and you'll likely have an analyst class that you can bond with and leverage in the learning process. But your biggest clients on the sell side (in terms of commission) are MM hedge funds. So your work naturally is typically catered to them and their investing style (hyper focused on qtr earnings and NT catalysts).
At a LO you're less likely to have a structured learning experience and more likely to do more long term focused research, trying to figure out the big picture, etc.
In both I'd say rather than the function it often comes down to the person you work for. Working for the right Analyst / PM - someone who will take their time to help train you, give you relevant exposure, etc. - is worth its weight in gold.
Hi there, thanks for doing this. Currently in the UK at a big 4 doing audit, doing the ACA. Currently studying for CFA level 1. My goals are to break into SS ER for the training and development, but I am a bit worried about how fast paced the work may be? I have struggled to keep up with my workload during busy season, and I wonder just how intense/fast paced ER is? (some other users on here advised I look into corp fin instead, which I am also now considering)
As a follow up, of those career paths you've listed above, would you say there are any which stand out to you as being not as stressful/closer to a 9-5 lifestyle job? (other than LO which seems impossible to break into).
Thanks!
ER is not a 9-5 by any means (nor are the vast majority of the paths discussed here generally). In my experience hours varied significantly based on the style of the senior analyst. Some teams work 70-80 hour weeks fairly regularly. Others are more 55-65. My perception from the US is that UK hours tend to be better on average, but I'm sure some teams over there get crushed regularly as well.
As for the other paths, PWM and Corp Fin probably have the best hours but even then I think 8-6 is more realistic for my cohorts experience than 9-5.
Generally speaking high performance roles in almost any field will demand more than 9-5. A lot of managing work life balance comes down to learning how to work smarter, which comes with time and experience, as well as accepting comp ceilings (which is a perfectly valid trade to gain family / friend time).
SM HF also very achievable it's just that there's a greater volume of seats in MM for obvious reasons. No one in my cohort has ended up at activist / special sits type shops but fundamental L/S equity SM is very much attainable (and accounts for the portion of the HF crew that isn't at pod shops). The HF split is around 70% MM / 30% SM.
The highest quality SM names are (of course) harder to get into, but people do it. You'll come across many of those funds as clients in the course of your time in ER (if you work for a good analyst), so its about making an impression and really knowing your stuff.
Disclaimer: I never pursued the HF path so can't offer more granular details on that recruiting process but people definitely get looks / land.
Hi, thanks so much for doing this!
A couple of questions I had in mind:
1) How is the move to the buyside like? As you mentioned, most are pulled over in around 2 years, but in terms of moving, is it more active on the analyst part where we have to look for opportunities or do headhunters approach ER too? Is it also true that headhunters would consider analysts from IB over ER?
2) Being in an investment bank's ER division, do you ever feel that it is a department that often gets forgotten by the rest since most ppl tend to focus heavily on IBD or S&T? In terms of perceived prestige, management decisions, benefits, or even say the recent pay bumps that most banks are giving to IB analysts, is the ER division often the last to get the pie?
3) How is the culture like? How much interaction is there within and between teams? As well as chances for travel opportunities around town to meet clients for meals or even overseas
4) Lastly comp wise, would you say it is much lower than IB or S&T as you move up the levels? After VP, does it start to slowly converge to banking comps? Is the tradeoff for slightly better working hours worth the lesser comp in your opinion
- Headhunters will reach out for roles. HFs vary significantly in terms of strategy, and no doubt there are strategies / funds that prefer IB. But there are also many that want ER / industry expertise. Also, if you work for a good analyst who gives you exposure, you will have an opportunity to build direct relationships with clients at many funds (Citadel, P72, Viking, Coatue, Glenview, Millennium, etc. etc.). So people might have to do some of their own work but you have the perfect means by which to be right in front of folks in any case. I never went or explored this route personally, just what I've observed from peers.
- I think folks in ER often feel like the black sheep of the bank. Everyone likes to complain and this is def a ER complaint that was in the conversation when I was there. I don’t know of any BB where ER is a focus for the firm.
- I would imagine this can vary considerably from firm to firm and group to group. My group was very collegial. Hours were good (55-65) and I had a good relationship with associates on other teams. My work and opinions were respected and I was treated as such. My senior analyst was all for giving associates client exposure so I got a lot of face time / phone time with clients / senior management. Other analysts were much more protective though. Comes down to the person.
- Higher up I don’t really know. I had no interest in being a senior analyst nor an MD in IB and so frankly have never spent any time trying to research their relative compensation. I know the best analysts cracked 7 figures. Other ER MDs were in the 600-800k range (I’d guess). At a junior level when I started salaries were the same between BB ER / IB. Banking bonuses were higher. What determines a fair tradeoff in hours / comp is a personal choice. For me it was worth it. I’ve yet to meet a sell-sider in need of charity. There are others for whom it wouldn’t be. Anecdotally, my quality of life in ER was dramatically better than an old roommate of mine in IB at a different BB.