Hey guys, I wanna pick your brains on the benefits of jumping to a new fund. Currently I work at a Big 4 Transactions group that focuses on securitization and credit structures (cmo/cdo/clo/rmbs blah blah blah). I enjoy structured products and have been looking to jump to a more IB structured role or a better credit investing role with some decent luck in getting informational interviews/getting a foot in the door.
Recently, a former alumni contacted me saying he was looking for a junior analyst to aid him in the start up of a new MBS trading and investment shop. Lets just say this guy used to be really high up at a BB prop shop until the crisis gave him the financial willingness to start his own.
Can some of you give me an idea about what the risks are of jumping to a new fund as opposed to waiting for IB contacts to build out. I've heard that people should be wary of small funds at times because it can be a surefire way to instantly close future doors into other industries if you don't enjoy it.
Personal Details:
1 year outta UG, considering going to BS
If anything, you can leverage the relationship - you're mainly looking to move from Big 4 to a credit/IB role, correct?
Risks are the fund shutting down and you being out of a job; you'll have to be very proactive in terms of networking. Of course, if the fund performs well, you'll have a decent upside. Long story short, high risk high reward; just make sure you know what you're getting into and everything is set in stone before you start.
TBH, BS is a bit too early, no?
You and Anihilist are pretty much spot on with my analysis. I am only 23 so BS is still 3-5 years away. I sorta figured if this ends up not being positive I could just stick it through until BS. Thanks for the input, I have my final talk w/ the PM tonight and should know whether or not I will take it.
IMO, at this stage in your career, I think taking the risk of going to the MBS fund would only be beneficial. You are most likely only about 23, so even if things do go badly you could always go back to BS and go from there and I don't think anyone could hold it against you for going to that fund at such a young age. You can afford to take more risks at this age then when you are say 30, so might as well do something exciting and fresh and the reward of doing well at this fund would probably exceed that of doing IB.
Do it. Perfect time in your life to take risks. You don't want to look back in 5 years thinking "man, I should have taken that job". Don't leave "what if" around
On the flipside, you also don't want to look back in 5 years and think "man, what if I had stayed." It depends on how highly you think of the former BB prop trader IMO. If you think he knows his shit and has what it takes to strike gold on his own, then go for it.
Though I agree, you can look at it that way, the above post sums it up. Is Big 4 really a place you think you should have stayed?
Interview went well, headed to Stamford to meet the partners tomorrow. Will let you guys know what happens!
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