Started ER Internship, Reconsidering: Exit Opps?
For a bit of background, I just started my internship in equity research at a low-tier BB (DB/Citi/UBS) and already having second thoughts. I decided not to do IB because I knew I didn't want PE and thought I was more interested in publics. The issue, however, is that I don't really mesh with the culture or work in ER at all. There is no bullpen atmosphere (we're in cubicles), my floor is incredibly quiet, and people don't really make an effort to get to know one another. Did not think it would be this introverted. Also, the job is less "forming views on industries and the market" and instead is going so granular on stuff for your analyst that you forget why you're even doing it.
I thought it would be great because people exit from ER to MM L/S funds and LOs all the time and I figured that was what I want to do, but I'm really reconsidering that based on what I read about MM HF life on here and how I'm already wishing for something more collaborative, less isolating. Seems like corporate exits are limited too (corp dev off limits); Plus, if I came back full time, it would almost 100% be to a different team than I'm interning in and I don't like leaving career prospects in the balance like that.
Has anyone been in this position? Has me thinking about re-recruiting but I know that's a bloodbath and I go to a semi-target. I don't want private equity but having a wider slate than just public markets investing would be nice to consider and I think the culture is just off. Maybe it's better at a MM HF or a different firm? Genuinely interested in markets so have considered S&T but that seems so niche and doesn't build a very wide skillset.
Any advice would be appreciated
Based on the most helpful WSO content, your concerns about equity research (ER) and its exit opportunities are valid, and you're not alone in feeling this way. Here's a breakdown of your situation and potential paths forward:
1. Exit Opportunities from ER
2. Cultural Fit and Work Environment
3. Re-Recruiting Options
4. Next Steps
5. Considerations for MM HFs or Other Firms
Ultimately, it's okay to feel uncertain early in your career. Use this experience to clarify your goals and take proactive steps toward a role that aligns with your interests and values.
Sources: Consulting Exit Opps for Introverts, Breakdown of Post-IB Exit Opportunities, Intern Burnout, Considering Full-Time, A warning to those aiming for Sell Side Equity Research, Future of Equity Research - 12+ Months into MIFID II
I hate to break it to you you will not get to do “non- granular” stuff as an entry-level hire at an investment bank
what do you think analysts/associates do? close deals? you build models in excel! If you think equity research models are too granular you haven’t seen a proper buyside model from a top tier HF or LO
investment banking involves even more detailed models because you have access to non public company data although you don’t need to do quarterly updates and the company gives you its projections
ecm - endless updates of memos and power points with the latest valuation/projection tweaks
s&t - endless emails, managing call schedules, booking dinners and meetings, writing summary updates on a daily or weekly basis
and yes research is quieter
but doesn’t sound like you have a reasonable set of expectations of what life of a first year analyst is like…
Hi thanks for your comment and would like to follow up on that: I cover a dying industry in APAC (about 10 stocks covered) with a worst performing boss internally. 1 year into the job and things start to get very repetitive and I see 0 upside opportunities (at our place you don’t get coverage in 5-6 years, and a lot of ppl won’t ever have that, cuz inagine only 10 stocks coverage each team). No client exposure either given other teams have like 3 calls a day but we have 3 calls a week so I’ll never get the chance to independently lead a client call. Should I quit?
Get out
Yes, this sounds like a bad set up - get a new sector, new boss, new firm
I think you just want validation here… but someone should also point out that you’re putting too high expectations on yourself if you think you’re going to be an expert worth talking to after 1 year. Unless you’re coming from a pharma phd background, it’s unlikely that you’ll be more knowledgeable and insightful than investors who have also studied these stocks day in day out for years. But an apprenticeship model isn’t everyone’s cup of tea, and if you want shorter runways you should move to startups or VC, even S&T is an apprenticeship for the first 3-4 years.
ER is very analyst and team dependent. Cubicles are definitely not helpful, my firm doesn't have cubicle, it's open plan desks. It is absolutely very quiet sometimes because this is an incredibly cerebral job. You cannot think if you are talking constantly - unless you are having debates with clients. But the thing with people not getting to know one another is a cultural thing. The job is very busy for sure but I know everyone around me and we joke and chat from time to time. You can't have a bullpen culture like IB though because ER is very flat. At many shops the MDs sit on the floor right next to the juniors. And bear in mind this isn't like S&T where the MDs are likely to be big personality extroverted. These guys are nerds. You have to be slightly autistic to be a senior in ER. But yeah, your exact experience will depend on analyst and team.
Buyside people are even worse, yes. MM guys are massive autists. There's simply no other way. Incredibly cerebral job which requires intense focus and basically obsession about markets. If you don't have that, you probably won't make it. Most people I've met from an MM just constantly talks about stocks. Even outside of work. Some barely have a sense of humour. I wish I was exaggerating, but that's been my experience. It's a great job for some, but don't be fooled, it's a very specific job.
I wouldn't worry about the FT conversion thing though. 1) Most people do not get to choose what they specialise in and tbh it often doesn't matter. Ultimately if you like stocks you like stocks probably. Once you get over initial perception fears, I think you either like it or don't. 2) You can often switch sectors early in your career. Or sometimes even later. If the bank is set up like that.
Thanks for the response. Is it truly worse at an MM, or is it a more collaborative culture at all... I sort of got into research because I like (not love) markets and wanted something with comparatively chiller hours than IB while still using my brain. Do you have any ideas on finance career paths that sort of scratch that itch while not being socially dead? Or is it outside of this industry entirely
ER doesn't have to be socially dead. You're just at a bad firm.
And yes it's almost definitely "worse" at an MM.
More social end of the stick is sales probably.
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