Top BB or EB for MMHF Exit
Hi all, understand this is quite an annoying type of question to be asked, but would love to hear some opinions here on WSO and I have greatly benefitted a lot before too.
For this, I really thought through it a lot, and have compiled it into a pros and cons list below. I have the BB offer on hand (GS/MS/JPM), and I wrapped up the EB (along the vein of Liontree/Raine where they are more specialised in an industry) process. Not counting my chickens before they hatch, but do have a good feeling about the latter and am also leaning towards it for an offer. Just a heads up that I'm non-US. But long term, I still want to be in an investor role at an MMHF.
Pros of BB:
- Brand name (for obvious reasons, and even the MMHF I was at still talked about the emphasis on this because especially as a freshgrad, the brand of your shop matters a lot)
- Wider optionality of exits, in the sense MFPE or many other roles will be available after going through the 1st 1/2 years
- Overseas exposure/different geography from my former internships
Cons of BB:
- Generalist nature/no clue of what group or sector I would head into - have been trying to find out by asking people but not too much headway yet.
- I don't really enjoy banking work. Not trying to sound like an ungrateful bitch but I much prefer the buy side.
- Definitely will spend a lot of time spinning wheels/pitching esp as deals in the region haven't exactly recovered
- Lower pay (I know it's insignificant and doesn't matter over the long run but yes)
Pros of EB:
- Industry I'm highly passionate about and would love to be an eventual sector expert in
- Higher conversion rate (relatively speaking) as their intern intake is for full-time conversion
- Better for MMHF recruiting down the road as the sector knowledge may be helpful relative to a more generalist deal-making where I can't control the industry I want to do as well
Cons of EB:
- If I suddenly hate the industry (unlikely but you never know), I'm cooked
- Lack of optionality/exits relative to broader brand name banks
- Not even get on recruiter/HH radar due to niche area
I really thought about this quite a bit, and have checked in with people in the industry as well as my own experiences. Not sure if I may be misunderstanding any part (like would an EB actually provide the better sector expertise for my own learning/exits into a pod seat down the road?) Understand that of course a sell-side ER role or a buy-side LO etc. would be optimal for that, and while I'm in the process for them, offers still seem a bit far away to think about anything in that sense.
Any thoughts? Am a risk-taker but will have financial burdens and commitments in terms of family when I graduate school, so job security and return offer is something that I definitely do value too. I lean towards the EB because if I will be "stuck" in a role, I rather do something I like too.
TLDR: Weigh-off between "passion and a potential path to MMHF" and "optionality/brand name and more well-rounded development".
Based on the most helpful WSO content, here's a detailed breakdown of the considerations for choosing between a top BB (like GS/MS/JPM) and an EB (such as Liontree/Raine) for a future exit into an MMHF:
Pros of BB:
Cons of BB:
Pros of EB:
Cons of EB:
Additional Considerations:
Conclusion:
Ultimately, the decision should align with your long-term career goals, personal interests, and financial considerations. If you value job security and broader exit options, a BB might be the better choice. However, if you are passionate about a specific industry and prefer a more specialized role, an EB could be more suitable.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/eb-vs-bb-long-term-and-exits?customgpt=1, Top BB vs. Top EB - 2019 Future Prospects, Exit Opps, Branding, Etc., IB post MBA, am I missing something?, 8 Reflections on Leaving IB After a Decade, https://www.wallstreetoasis.com/forum/investment-banking/qa-md-in-ma-and-capital-markets-with-bulge-bracket-and-boutique-experience?customgpt=1
BB, you’re overthinking this
No one is hiring a banker for sector expertise.
Just realised this is for SA - take the BB and try to recruit for MLP/Citadel/P72 Academy FT. This is what I did and the BB name helped somewhat. If you want to do MMHF push for the FT programs as much as possible
Thanks for the reply, and glad it went well for you. For me I was also thinking more from the perspective of return offers (like if the EB goes well, at least I would have a job secured relative to a more "toss-up" style for BB, and going through another recruiting cycle that may be fruitless). But greatly appreciate your perspective on this, I think when I mean "sector expertise" it's def after a few years full-time at the EB. But ofc fully agreed with you that a good MMHF program will be the best way to start off for sure.
Incremental supply of MMHF intern seats is coming online (to my knowledge). Believe BAM is starting a program and MLP as well
It’s an excellent talent pipeline / way to attract the top undergrads
You’re smoking MLP and Bally have HAD programs.
The 4 biggest MMHFs have had internship programs for a while
Citadel/P72 have had structured internships for their grad programs for a while
BAM recruits summer associates (I.e MBA) for L/S and the occasional summer analyst on a needs basis (see postings in APAC etc) - they do have MO/quant internships
MLP recruits for l/s on a needs basis too but has MO/BO internships
Bruh
Talked to people at two of Q/LionTree/Raine non-US location very recently for off-cycle FT (including head of hiring).
Both said we’d prefer if you join GS/JPM first and lateral to us as their training grounds are unmatched and because our London/Paris offices are very lean.
So I think the answer is top BB. Especially like the guy above said, no one is hiring an analyst for sector expertise.
Sigh. This question again. It doesn’t really matter. From any BB or any EB of decent reputation you will get interviews for hedge funds, it’s on you to convert them. Pick the firm with the better people and culture that you will actually enjoy working at for 2-3 years of your life, and use your spare time to practice modeling quarters / years vs consensus and building stock pitches. Any decent IB firm name gets you the first interview, but doesn’t mean jack shit beyond that if you whiff the interviews or the case study
Do you think group matters at all? I know HF don't look for industry expertise in IB candidates, but would groups like Healthcare/Industrials be preferred over Power/Energy all else equal? For context, I'm going through placement at an EB where all groups above have strong deal flow and decent culture but power has slightly better culture - appreciate any insight!
You’re going to spend 2+ years of your life learning about businesses in the industry of your banking group, so naturally when you recruit for buyside, you’ll likely gravitate towards recruiting for those industries. It’s completely possible to change industries when you go from banking to buyside, but you’ll have to teach yourself the industry you’re recruiting for when you pitch your stock and you’ll naturally be at a disadvantage compared to somebody who did banking or ER in that industry for two years. I did tech banking, and then recruited for a software HF position and I certainly found my experience analyzing software companies in banking very helpful
Doesn’t matter bro. You will get interviews at all the MMHF’s if you work in banking and try hard enough. Then it’s on you to convert them.
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