ER Lateraling?
How common is it for ER associates to lateral to other firms? Does it make sense to do so if you start out at a Regional MM and want to get a brand name before going buyside? Or is that jump not necessary? Any help is appreciated
It depends on your goal. Before I go into the decision tree, just know when you move, you have to deal with quirks with your new analyst and team, and you reset your clock for at least 1.5 to 2 years before you can pursue another move to where you want to go.
Analysts in the same sector play the zero-sum game of getting II votes, so many view each other as nemesis as long as they are still in the profession, and losing a junior to a competitor is a huge hit to their ego.
I am in the camp of everyone for themselves in this profession, but I just want you to think through it because you will burn a big bridge.
If your goal is to become a sell-side analyst and you are not getting exposure to equity salespeople and clients for brand-building purposes, you SHOULD lateral provided the new opportunity provides the things that are lacking under your current analyst.
If you are not getting traction to buy-side jobs, 99% of the time it’s your issue. Unless you work at a really bad shop, buy-side clients should know who your analyst is. If you don’t know your coverage well or you can’t think like an investor, moving to a competitor analyst will not help YOU significantly, even if they are II #1 or are most respected by the buy side.
You should instead pinpoint whether you have any product issues (research process, stock pitches, technical interview, etc.) I suspect most of you also don’t do enough one-on-one networking to build a brand in front of firms you want to work at.
You don’t need to move to a new seat to fix your product and distribution issues. You can take control of them on your own time.
Thank you for the well thought out response. I think the first half applies to people at more name brand shops or in groups where analysts cover more prominent names. My analyst covers smaller cap names across a few diff industries and I’m not sure how to check how he’s ranked. I want to end up on the buyside and haven’t started so my concern is I won’t get looks given the smaller company name and unknown analyst. In a case like this, how easy would it be to lateral to a more known analyst with the intent of jumping to the buyside
I suspect most of you also don’t do enough one-on-one networking to build a brand in front of firms you want to work at. You don’t need to move to a new seat to fix your product and distribution issues. You can take control of them on your own time.
Very elaborate and well thought out response. I’m currently caught in that situation where I’m in a MM and have an offer at a BB. Really conflicted because of the good working rs with my analyst. One drawback imo is the remote nature. Whilst some view it as a privilege, I’m sometimes concerned that I may be shortchanging my learning. Granted I know I’m 100% accountable for that but can’t help but to feel that way sometimes. Any advice?
How small of a shop without saying the shop?
Wedbush/B Riley/Roth Capital markets
Maybe it’s worth a lateral. Dunno how those are regional given all of ER is in nyc.
Have seen this happen multiple times. Everyone at these banks is craving an associate that they can plug and play, knows the basics and they don't have to hold their hand. I would stay at your small shop a year or so to learn the ropes and gather some experience. Then you can leverage your experience to move. If you recruit right now, you have nothing to offer the bulge brackets etc. over someone who also doesn't have experience. After 1-2 years you will be able to apply and tell them I've learned alot of the basics at this point and can hit the ground running vs. someone raw out of school.
I have worked at middle market and bulge bracket firms. There are pluses and minuses, but externally the respect you get is much higher at bulge brackets. Fair or not, just how it is.
How soon into the job would it make sense to lateral (6 months, a year, less)? This is for a first year associate. Would this usually be done via networking? If so, would it make sense to network asap and mention I want to make a jump soon? Thanks for all the help. I’m totally lost so I appreciate the advice
How long have you been on the desk? If you’re dead set on leaving I’d start asap. 1Q has the most openings. You should start looking now vs in June.
You can lateral whenever you want and I agree with above that Q1 tends to have most opportunities. Question is how you create a compelling narrative when applying. Why leaving and how are you more qualified than someone with no experience would be the top questions.
What about if you plan to go overseas (London/NYC/SG)?
In a similar situation to OP - at a mid-market bank here in Australia (probably ‘best’ one/most ECM deal flow). Ultimate dream would be to do a couple years buyside overseas. What would be the best way to do this? Firm has offices in both US/UK locations so possible to request a transfer but I think the bank has less relevance in UK/US vs Aus. So was thinking lateral to a BB in Aus, then move overseas with BB on resume to either another BB gig overseas or trying directly for buyside? Is there a better event path than this?
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