Public / Private Markets Equity Investing vs Corporate Banking

Moving countries to a big financial hub in this world and have an offer to join a $1bn+ public (L/S equity) / private markets investing shop.

For background, I've done years of BB M&A, private equity investing at a marquee shop and corp dev at a top tier firm and I'm slowly realising that I quite enjoy and am good at all the analytical stuff these jobs require but that I enjoy relationship management much more than that and that I'm probably better at the latter. I'd think that I could be a 9 or 9.5/10 in relationship management vs 7.5-8/10 in the investing/analytical world.

The other thing that really matters to me is WLB. I can't lie, I'm done with doing consistent late night and having to cancel plans. It's important to me to go to dinner/drinks with friends when I like, going to the gym and having my weekends for me without fearing my life is blown apart anytime by a lovely e-mail.

On the investing shop, the fund really likes me and the way I think through an investment idea and ultimately give a recommendation on a stock but I've never done public markets so I'm not sure how good I am and for how long I'd last (being upfront as I know public markets is not a stable career). Being super honest with myself, I couldn't tell you what my special edge is to generate alpha and how that translates into a long, successful career (I know numbers, have good background like everyone else but cooking with water here!). Also, I've been told WLB is good but I'm not trusting this 100% as I've been told the same in my PE and corp dev gigs and have been burned (obviously I didn't have high expectations in PE but you can imagine). Another point for me is that I'm not a die-hard passionate markets lover and public markets was really not a dream or on the radar over the last few years for me. As any person who likes finance, public markets is of course exciting but I wouldn't die from not doing it.

On corporate banking, I've spoken to multiple friends/mentors who have done or are doing CB and they've all told me I'd be an excellent fit given my past experience as an advisor and the client, my good understanding of the product suite (done loads of refi, trade finance, RCFs, FX hedging, project finance at my very messy PE portco) and great ability of building and nurting relationships. I think the lifestyle/WLB also sounds reasonable enough to me and day to day is exciting for me too (at senior assoc / early VP level) and I could see myself doing this for a few years minimum. Pay is also fine and works well for me and I'm also excited about the clear progression forward to D/MD (not having structured/clear upward mobility is something I hated in corporate/PE).

As a caveat, I don't have an offer yet for a CB gig but was put into a process via a connection of mine and have done some tests already. I'm not in a rush with cash runway/visa and can totally not do anything for a few months so I can take my time.

So WSO, what is your honest take on this? What should I do?

What do do?

Take public / private markets equity investing
67% (4 votes)
Try to get CB gig now or wait until one becomes available
33% (2 votes)
Total votes: 6
2 Comments
 

Based on the most helpful WSO content, here’s a breakdown of your situation and considerations:

Public/Private Markets Equity Investing:

  1. Pros:

    • Opportunity to work in a $1bn+ fund, which indicates a solid platform with resources.
    • Your analytical skills and investment background align well with the role.
    • Public markets can be intellectually stimulating and exciting for those passionate about markets.
  2. Cons:

    • You’ve admitted that public markets weren’t a dream for you, and you lack a clear "edge" to generate alpha, which is critical for long-term success in this field.
    • WLB promises in investing roles can often be misleading, as you’ve experienced in PE and corp dev.
    • Public markets can be volatile and less stable as a career, which might not align with your desire for stability and WLB.
  3. Key Insight:

    • If you’re not deeply passionate about public markets and don’t see a long-term fit, this might not be the best move, especially given your concerns about WLB and career stability.

Corporate Banking:

  1. Pros:

    • Strong alignment with your relationship management skills, which you rate highly.
    • Your prior experience with refinancing, trade finance, and other CB-related products positions you well for success.
    • Clear upward mobility to D/MD, which you value, and a more predictable career path.
    • Better WLB compared to PE and public markets, with typical hours being 9-6 and rare late nights unless on specific deals (e.g., bridge financing for M&A).
  2. Cons:

    • CB may lack the prestige or excitement of investing roles, and exits to high-profile roles like PE or hedge funds are limited.
    • You don’t yet have an offer, so there’s some uncertainty in this path.
  3. Key Insight:

    • Corporate banking seems to align better with your strengths, career goals, and lifestyle preferences. It offers a balance of relationship management, clear progression, and reasonable WLB.

Recommendation:

Given your priorities (WLB, relationship management, and clear career progression), corporate banking appears to be the better fit. It aligns with your skills and offers the stability and lifestyle you’re seeking. While the public markets role is a great opportunity, your lack of passion for markets and concerns about long-term fit suggest it might not be the right move.

If you’re still unsure, consider the following: - Leverage your time: Since you’re not in a rush, continue exploring the CB process while keeping the investing shop offer as a backup. - Clarify WLB expectations: Speak to current employees at the investing shop to get a realistic sense of hours and culture. - Evaluate long-term goals: Think about where you see yourself in 5-10 years. If it’s in a stable, relationship-driven role with clear progression, CB is likely the better choice.

Ultimately, trust your instincts and prioritize what aligns with your strengths and values.

Sources: Q&A: Non-Target School to Portfolio Manager at a Top Hedge Fund – 6 Years Out of Undergrad, Unpacking Corporate Banking at Citi/BAML?, Why corporate banking instead of investment banking?, Point 72 vs Blackstone, What is corporate banking?

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

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