ER to l/s London. Still a viable path?
Hi guys,
Ignore title.
I recently secured a 2025 SA position at a BB in London. While I’m excited about the opportunity, I came across the recent Bloomberg article highlighting challenges in the Equity Research space (reduced headcount, shrinking budgets, regulatory pressures, lower bonuses, rise of ai ...).
Given my long-term goal of transitioning to MM L/S earlier in my carrer ( likely after 1-2 years of full-time experience)
I’m wondering if Equity Research is still a viable stepping stone for this path, especially in london.
I’d love to hear your thoughts.
Equity Research (ER) remains a viable stepping stone for transitioning to MM L/S funds, even in London, but the path has become more nuanced due to industry headwinds. Based on the most helpful WSO content, here are some key considerations:
ER as a Foundation for Buy-Side Moves: ER still provides strong fundamental training in analysis, pitching, and critical thinking, which are highly valued on the buy-side. It also offers access to prominent PMs and networking opportunities, which can be leveraged for a move to L/S funds.
Challenges in ER: The industry has faced significant challenges, including shrinking budgets, regulatory pressures (e.g., MiFID II), and reduced headcount. Bonuses and compensation have become less predictable, and the rise of AI is reshaping the landscape. However, high-quality research and differentiated insights are still in demand, particularly from top-performing analysts.
London-Specific Dynamics: London remains a key hub for finance, and while MiFID II has impacted the ER space, the city still offers opportunities for those who excel. Joining a high-ranked team or sector with strong buy-side interest can enhance your prospects.
Timing Your Transition: Spending 1-2 years in ER at a BB can be a solid strategy. It allows you to build a strong skill set and network while positioning yourself for a move to L/S funds. However, the window for transitioning may narrow as the industry evolves, so staying proactive in networking and skill-building is crucial.
Alternative Paths: If ER's challenges seem too significant, consider other roles that align with your long-term goals, such as investment banking or corporate finance, which can also lead to buy-side opportunities.
In summary, while ER is still a viable path to MM L/S in London, success will depend on your ability to stand out, adapt to industry changes, and leverage your network effectively.
Sources: https://www.wallstreetoasis.com/forum/equity-research/career-ladder-equity-research-vs-investment-banking-a-definitive-guide-part-3?customgpt=1, Future of Equity Research - 12+ Months into MIFID II, I was in Equities Research for 10 years in Asia – Ask Me Anything, Q&A: London L/S + event-driven analyst, Career Ladder: Equity Research vs. Investment Banking - (A Definitive Guide, Part 3)
obviously
MM L/S remains the most common exit opp out of ER
Eveniet laboriosam recusandae ex nam quas. Illum aliquid facere eos accusantium aliquam asperiores esse molestiae. Rerum temporibus aut vitae totam optio maiores ex. Enim sed omnis consectetur aut animi impedit ad.
Non qui quidem ratione eos dolorem aut. Quo autem eaque est molestias facilis magni voluptatem. Et enim laborum maiores aut blanditiis sint. Et mollitia esse iure quis suscipit.
Omnis in est recusandae aut odio architecto qui. Ut quis rerum quo a molestiae. Consequatur facilis suscipit aut a et voluptas quo omnis. Sapiente sunt ipsa qui error.
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...