Worth the switch? 2nd year IB ASO to C/P72/M
Currently a few years post-MBA at a top IB shop. Have been having conversations with the named HFs and am pretty lost with regard to comp expectations, entry level (do I lose more years of career progression?), WLB, etc. What should I expect or negotiate for? Would this be a worthwhile switch?
The numbers: hours have been pretty miserable (averaging mid-80s per week for a long while) and TC for the year is probably just shy of 400.
Do HF if you’re betting on yourself to make $$$
Bumo interested and following. Also applying to MBAs and am curious.
I am curious if you pursue this path as I'm also post MBA ASO. Though I personally wouldn't want to work in a pod shop
Pod shop is likely your best bet as an MBA assoc wanting to do L/S.
What was your pre-mba experience? My understanding is you’d probably take a pay cut in year one but with significant upside if you’re good.
Have a background in accounting, which I assume I’ll get only partial credit for at best
In my experience, you will get the same package as everyone else in most cases unless your pre-MBA experience is materially valuable or you have prior investing experience. Expect the same base as someone coming in after a year or two in IB or an undergrad. Without investing experience, they're all the same.
It differs if you have something like a PhD and its relevant etc.
Total comp should be around 300/350k.
Do MMHFs recruit out of MBA??
Not specifically, Baly has an internship program for MBAs though
MBA’s apply to MMHF programs depending on xp (p72 academy vs experienced academy etc)
Citadel/MLP/P72 graduate schemes+ Baly MBA summer associate openings
Know at least 1 MBA that was in C/M grad process this year
Appreciate it! 350 total sounds like a tough sell at this point unless there are material WLB gains. Have you or anyone you know made the switch that can speak to the trade-off?
And candidly, having worked with plenty of second year analysts (and having seen one go this route), there’s a pretty significant difference in general acumen / competence. Would be surprised if it warrants an identical pay package but ofc am here for that insight!
People don’t choose this gig for WLB, they choose it because they want to crush it (which necessitates making markets your life). The lack of career security is real so people will put in the time they think they need to in order to make $ and learn. As a junior this will likely include some of your weekend at various points, especially when ramping and when in earnings. So can’t really comment on WLB for you, I’ve never worked in IB.
That aside, curious what you mean in terms of quality difference between analyst 2 and associate. No one hired from banking adds value, you’re being hired to be a model monkey for the PM and to learn the process and how stocks work in your first 6-12m.
Thats why you’ll be paid the same, you don’t make $ for the PM any faster because the skillet is tangentially related at best - and this is why the large MMs have started hiring undergrads for their training programs.
Might sound tough, but this is the reality of it.
There is also the possibility you get 350 in year 1, and 150 in year 2 because your pod blows up.
I actually don’t know anyone that’s made the move as an IB associate, but I do know people that have come in from “better” seats who’ve been paid around the same as an undergraduate would in year 1/2. Mostly from PE, but depending on the pod and the experience I’ve seen some people get their comp matched.
How is 350 a tough sell if your current comp is "just shy of 400"? Not the right mentality for the line of work man. Maybe check to see if the government is hiring
I would say picking to go the HF route or not based on ~$50k junior comp difference is a really bad reason for doing it or not doing it and very shortsighted. You need to pick the role you’d like over the next 10 years.
echoing others' comments. you seem too risk averse to be at a HF anyway
Atque consectetur temporibus dolores aliquid. Modi numquam dolorem quis quidem cumque. Corporis qui quisquam eos necessitatibus voluptas fugit et vel.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...