Is Equity Research a good entry point into finance?

Hi all,

I’m curious to hear everyone’s thoughts on using equity research as a pivot into finance.

For background, I graduated from Wake Forest in 2022 with a 3.7+ GPA. I was a Philosophy major and Finance minor, originally planning on pursuing law school. After bailing on that during my senior year, I didn’t know what the hell I wanted to do but I was vaguely interested in that finance minor, so I (naturally like many others) took a job in consulting.

I now have 2 years of experience, specializing in investor relations and corporate communications for the financial services sector. Given that niche IR experience, I’ve come to realize that ER might be my best bet at breaking in without going back to school. Plus, investing and financial markets (public more so than private) are by far the most interesting to me, and so I passed the SIE recently and am currently taking Wall Street Prep’s financial modeling course.

I have the following questions for those currently in ER as I start applying:

  • is the name brand of your firm more or less important than the name brand of your Analyst?

  • beyond HFs, where do you see your peers going to?

  • I know networking is number one, but what else can I be doing in the meantime to bolster the application?

  • are there industries other than ER that I might not be thinking about?

 

Based on the insights from Wall Street Oasis, Equity Research (ER) can indeed serve as a solid entry point into the finance sector, especially for someone with your background in investor relations and corporate communications within the financial services sector. Here’s a breakdown of how ER can be a strategic move for you:

  1. Relevance to Previous Experience: Your experience in investor relations aligns well with the skills required in ER, such as understanding financial statements, communicating complex financial information, and dealing with investors.

  2. Interest in Financial Markets: ER will allow you to deepen your understanding and analysis of public markets, which you've expressed a strong interest in.

  3. Educational Background: Although your major was in Philosophy, your minor in Finance and the proactive steps you've taken, such as passing the SIE and taking financial modeling courses, demonstrate a strong commitment to transitioning into finance.

  4. Networking and Skill Enhancement: As you've rightly pointed out, networking is crucial. Continuously engaging with professionals in the field through forums, LinkedIn, and attending industry events can provide insights and open doors. Additionally, continuing to enhance your financial modeling skills and perhaps starting to write sample equity research reports could further bolster your application.

  5. Exploring Other Industries: While ER is a great fit, you might also consider roles in financial analysis, asset management, or roles that involve financial communications within corporate settings, which could leverage your previous IR experience.

In summary, ER could be a very suitable option for you to pivot into finance, leveraging your existing skills and interests while providing a platform for further career development in the financial sector.

Sources: Is Equity Research really decent at getting exit opps to top AM and HFs?, Q&A: Equity Research Associate at a Boutique Firm, Q&A: Sell-Side Equity Research today, Future of Equity Research - 12+ Months into MIFID II, Starting Career in ER??

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Culpa quam impedit ratione exercitationem. Laudantium est impedit aut in.

Libero blanditiis quia quam. A beatae nesciunt ipsam earum reiciendis consequuntur quam. Odit explicabo et et ullam omnis. Impedit dolores minima saepe aut et quasi officiis perspiciatis. Voluptatem ipsam sed cumque molestias expedita sed esse.

Career Advancement Opportunities

June 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Perella Weinberg Partners New 98.9%
  • Lazard Freres 01 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 16 97.1%

Overall Employee Satisfaction

June 2024 Investment Banking

  • Harris Williams & Co. 19 99.4%
  • Lazard Freres 06 98.9%
  • JPMorgan Chase 09 98.3%
  • Morgan Stanley 05 97.7%
  • Moelis & Company 01 97.1%

Professional Growth Opportunities

June 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Goldman Sachs 16 97.7%
  • Moelis & Company 05 97.1%

Total Avg Compensation

June 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (22) $375
  • Associates (94) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (69) $168
  • 1st Year Analyst (206) $159
  • Intern/Summer Analyst (151) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.8
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”