How difficult to lateral into ER from Corporate Finance/Strategy

Based on the most helpful WSO content, here are some insights on lateraling into Equity Research (ER) from a Corporate Finance/Strategy background:

1. Background and Experience:

   • You have 1 year of experience in a rotational Corporate Finance position with some strategy-related rotations at a large Asset Management firm (e.g., Blackrock, Vanguard, Fidelity).
   • One of your rotations was heavily research-based with some light bottom-up and financial modeling experience.
   • You have also done a few academic research papers as extracurricular activities for professors.

2. Transition Feasibility:

   • ER can be more welcoming to individuals coming from different backgrounds, including those with a year or two of experience in middle-office (MO) roles.
   • Unlike some traditional paths like Investment Banking (IB) or Sales & Trading (ST), ER does not strictly require entry from undergrad. Your research experience and financial modeling skills can be valuable assets.

3. Strategic Considerations:

   • Skill Development: Continue to build and demonstrate your financial modeling and research skills. Reading books like Aswath Damodaran's on Valuation and applying them by making your own models can be beneficial.
   • Networking: Leverage your alumni network and industry contacts. Even if your school's alumni base is limited to IB, S&T, and PWM, they might still provide valuable connections or advice.
   • Recruiting Process: Familiarize yourself with the ER recruiting process. It might involve a mix of behavioral and technical interviews, similar to other finance roles.

4. Additional Resources:

   • Consider exploring WSO's Financial Modeling Resources, Excel Resources, and other career resources to further enhance your skills.
   • Mock interviews and resume reviews by professionals can also be helpful in preparing for the transition.

In summary, transitioning into ER from a Corporate Finance/Strategy role is feasible, especially if you strategically build on your existing research and modeling experience, network effectively, and prepare thoroughly for the recruiting process.

Sources: The right time to lateral?, Corporate Finance Q&A with accountingbyday, BJM85, STorIB, and djfiii, https://www.wallstreetoasis.com/forum/investment-banking/how-hard-would-it-be-to-lateral-into-investment-banking-for-ft?customgpt=1, Strategic finance?, Future of Equity Research - 12+ Months into MIFID II