Investment Banking Analyst to Equity Research Associate?
Hi monkeys, first time posting on the ER forum. I was wondering how feasible, or if anyone has had any experience transitioning from being a first-year investment banking analyst to working as an equity research associate at the same bank (or just in general).
For context, I've been working in IBD at a BB for the past year, and I realized that I'm not really all that interested in IB (for many reasons), and that PE does not fit my long-term interests that well. I've always enjoyed reading about stocks and I've written research reports in the past and really enjoyed writing them + reading them, in general.
This isn't something I've just randomly thought of either, I've assessed my long term goals, my personality, how I 'function' as an analyst and have truly realized ER simply fits me a lot better.
That being said, I even have specific sectors in mind that I'd love to cover and would really enjoy, mainly because I explore them outside of work in the little free time I have. I was wondering how feasible it would be for me to transfer internally to equity research or make the jump into ER somewhere else and how the process would go for moving from IB into ER (is it networking on LinkedIn, making my own reports, is there a certain process, restrictions to speaking with research people as someone in IBD, etc.).
It's feasible and you are probably better off networking externally given the Chinese Wall of your employer. Maybe some banks have formal process that encourages cross-departmental movement (it's better to keep you internally than losing you to a competitor)
It's networking. Making your own report can only help if your work is good.
I would be more open-minded about sectors because equity research openings don't happen all the time and especially true for hotter sectors.
Appreciate the feedback. I have been going through your website actually, it's super useful man!
I have just not seen any posts about transferring from IBD to ER, but plenty from the other way around. By networking, it's just LinkedIn messaging and emailing like how I did for banking, except more from the perspective of creating theses, I'm assuming.
Regarding sectors, not really interested in the "hotter" sectors like healthcare nor tech, I'd like to be focused on industrials / transportation and utilities / energy. Still, don't know where to start, how long does the lateral process take? I know positions usually open up during Q1, right?
In equity research, there is no timeline, so you might as get used to that right now. Hiring is all need-based due to turnover (obviously there is no headcount growth in this environment)
Yes, positions usually open up during Q1 because of the same bonus dynamics as in IB.
Moving from IB is more common than you’d think. I know at least half a dozen or so associates did just that. It would be easier if your coverage group industry is in the same sector as the research group that you’re interested in joining or has done deals in the same sector. You can probably reach out to the lead analyst of the group that you’re interested in via LinkedIn. Once an initial interest/need is established, further conversation will likely take place under the supervision of the bank’s chaperon. Preparation should be standard as any other ER interview - fit, stock pitch….
In a similar spot, but think I need to be on the desk longer to not look suspicious or like a job hopper. Would 6 months be enough or would I have to wait at least a year or a year and a half?
Ideally one year but doesn’t really matter as long as you can provide a good reason. For switching internally, there’s usually rules on how long you need to stay on before you can make a switch.
how hard is it to switch internally? I can't really network because of the Chinese wall so kind of lost there even though it would probably be the most feasible way to do it
Reach out to senior analyst on LinkedIn to see if they have open position and would be interested in speaking with you. After that, schedule a call via chapter to speak with the senior analyst.
But yes it’s easier to apply for ER positions at the other banks. Then after you get the offer, then go back to your bank and see if there are positions available. I usually see people approach it this way, whether it’s from IB to ER or the other way around.
1. What do you want to do?
2. Why do you want to do it?
3. How long have you been interested in finance?
4. What skills/experience do you already have?
5. What skills/experiences would you need to get?
6. What kind of salary range are you looking at?
7. Do you have any questions about the job?
8. Anything else we should know?
9. Any additional information?
10. Contact Information
11. References
12. Resume
13. Cover Letter
14. LinkedIn Profile
Have a similar situation, thinking of making the jump, have been on the desk for a year and don't really like IBD that much. How much better is the ER lifestyle comparatively? Not looking for 80 hours, but closer to 50 to 60. Eventually wanna jump to a hedge fund L/S, how feasible is this?
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