HF post MBA

Hey guys, would appreciate some insight into the best path forward. I am planning on pursuing an MBA this following year. My background includes 6 months in ER. Prior to that I spent 2 years as a research scientist. I was let go from my role with 30% of the department. Since, I have failed to successfully recruit given my short stint.

Currently grinding away at the GMAT and plan to apply to M7 MBA schools. I want to be a public equities investor but know that’s difficult to do out of MBA. Assuming my options top 2 choices are ER or IBD associate, what which to choose to maximize HF recruiting? Leaning towards IBD given the higher pay to future school loans, but afraid I’ll fall into the golden handcuffs. Any thoughts? Additionally, how often are MBA associates landing at HF’s after an associate stint.

(That’s not to say I won’t try to recruit for HF)

12 Comments
 

Based on the most helpful WSO content, here are some insights and advice for your situation:

  1. Choosing Between ER and IBD:

    • IBD Associate: This path is generally more lucrative and can help you pay off future school loans faster. However, it comes with the risk of falling into the "golden handcuffs" where the high pay and lifestyle make it difficult to leave.
    • ER Associate: While this might align more closely with your goal of becoming a public equities investor, it may not offer the same financial benefits as IBD.
  2. Maximizing HF Recruiting:

    • IBD Path: Many top hedge funds hire associates directly from investment banks. The training and experience you gain in IBD can be highly valuable and make you a strong candidate for HF roles.
    • ER Path: While ER can also lead to HF opportunities, it might not be as direct a route as IBD. However, if you are passionate about public equities, this could be a more fulfilling path.
  3. MBA Associates Landing at HFs:

    • Frequency: It's not very common for MBA associates to land directly at hedge funds after their associate stint. Most HF roles are filled by those with direct experience in investment banking or those who have built a strong network within the industry.
  4. General Advice:

    • Networking: Use LinkedIn to find people with similar backgrounds and see where they landed. Building a strong network can significantly improve your chances of landing your desired role.
    • Focus: Be clear and focused on your career goals. Whether you choose ER or IBD, make sure you can convincingly explain your passion and understanding of the HF industry to recruiters.

In summary, while both ER and IBD can lead to HF opportunities, IBD might offer a more direct and financially beneficial path. However, it's crucial to stay focused on your long-term goals and build a strong network to maximize your chances of success.

Sources: https://www.wallstreetoasis.com/forum/investment-banking/m7-ib-associate-full-time-recruiting?customgpt=1, Join startup HF or pursue MBA? Seeking advice.., Should I Slow Down?, Why do you go into PE only to go into HF, Security or Dream Job?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
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Not sure if this is a hot take or not but think there's plenty of HF that recruit MBAs/summer associates of sorts. Perhaps it's only the top 4 or 5 b-schools that get looks but certainly seen plenty of H/W/S + Columbia (value investing program) all over the public HF seats... maybe a hair less common today than previously but still think there's some folks...

Also would just add post-MBA banking is way different than pre-MBA banking and equity research at that stage is by and large the best way to land at a public equity seat post-MBA. I don't think I've ever seen a post-MBA IB associate move to a hedge fund but plenty of post-MBA equity research people do.

 

What makes post-mba banking different than pre-mba banking from an associates perspective? Been hearing a lot of negative things about mba associate hires, and it’s making me nervous

 

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