5-year step back to get into IB front office
Have been working in the CFO/COO function of a BB for ~4 years now and done fairly well. At recruitment time, I was clueless of the IB process so was happy to get a BB job. Having been working within the IB group, I have got very familiar with the business and bankers.
I've run out of patience with my more operational/finance role as comp has not kept up and progression is limited. Given current headcount/hiring restraints, my only move into the front office is to take a graduate role in about a years time. At that point I'll be taking a step back 5 years to Analyst 1 again. Comp/prospects improve, but the heavy demotion stings. External recruitment engagement has been less that fruitful so far.
Is it worth starting again to get into the IB analyst program on the ground floor?
You need to realize this can happen at any point in your career. For some, they may get stuck at VP and have to switch firms, some may get stuck at Director. What’s your alternative? Can go to B-school? But if the banks are promoting from within then may be more economical to do analyst as by the time you finish B-school you’ll get promoted. Although, mba has other benefits too, including choosing from firms, better network etc.
if you like the job and can put the hours in (27 isn’t old) you should consider it. In 5 years time what will you care more about - total comp or the title sting?
Also, make sure you really dislike the job before going to IB. It's (banking) not a job that you should do only for the money, and you shouldn't compare your pay to a banker the same age. But what do you think you "like" doing? Plenty of other things in finance outside IB too. If you make the switch at 27, either keep B-school as backup or make sure you'll like it.
If you consider tuition and expenses plus the opportunity cost of two years without a paycheck, I think the MBA to Assoc1 route is far less economical than starting at An1 in a year. Of course, there are also intangible benefits to doing the MBA like network, travel, and time out of the workforce. Plus OP would likely be a strong candidate given his semi-related experience at a bank. But the dollars and cents decision would probably be to reset as An1.
You have to have a pretty solid game plan if you want to make the switch. You are also a bit too experienced for an analyst role and an untraditional candidate for an associate position. It’d be great for candidates to be able to make the switch to associate internally from corp fin/coo(non-corp strat/dev) but I’ve never seen or heard of this move. However, there are MBA’s with the same amount of experience as you who come in as associates, so targeting that level still makes sense in my eyes. But you need to have done some interesting, ideally relevant work to a banker that makes up for a lack of an MBA if you go down this route. You’d want some mix of the following work experience:
1) Being a manager with direct reports.
2) Have created externally ideally market driven deliverables. Meaning your work is driven by rate movements for example or anything else from a macro or market perspective and not like the bank required implementation of a new process.
3) Strong Excel and PowerPoint skills. You have made compelling models and presentation from scratch. Should note that making models from scratch isn’t part of an associates job and is hardly done at the analyst level at BB’s, but I listed this as it’ll demonstrate strong Excel skills.
4) You’ve done corp development or strategy type of work even if it’s for a business unit. Ideally you’ve completed deal work at minimum for a partnership or minority investment. If not, you’ve helped develop, vet, and execute some milestone or strategic initiative for growth or strategic positioning.
5) In lieu of corp strat or corp dev experience, you’ve developed and project managed multiple complex, senior executive sponsored initiatives involving buy-in multiple teams and quantification.
6) Proven ability to work long hours on tight deadlines.
Aside from corp dev as a standalone experience, you’d want multiple points checked off if you want to make the switch to associate. If you don’t want to get an MBA, I’d encourage you to get some compelling experience for a year or two before making the switch. You could also leave the bank to acquire it and then come back.
I just think it’ll be hard to make the switch to analyst at this point as you might be perceived as too experienced and atypical. I also don’t think getting MBA and coming in as an associate is the worst idea especially if you have to gather relevant work experience/spend time to make the switch anyway. You’d more than offset the cost of the MBA and put yourself in a better position aligning with your goals. However, if you are targeting an analyst position to better position yourself for the buyside, that’s a different conversation and you should do whatever you can to switch ASAP.
Thanks for this thoughtful feedback. Your last paragraph definitely hits on some of my concerns.
I can tick off 2 though 6 of your suggested list - I have no shortage of related experience (just not full blown modelling), so feel a bit short-changed by the A1 restart.
Would you 'bite the bullet', or try find a better deal? Hard to see what other options are out there where I can leverage my relatively bank-specific experience.
Thanks again.
I personally would not want to reset to an analyst. It’ll take you two or three years to get to the associate level anyway. I’d just get an MBA. It’s the most sure fire route to IBD well beyond even getting corp dev or corp strat experience.
But before you do anything else, talk to a banker you’ve worked with and get their feedback on paths to joining their group. Polish up your story and resume to make both as banking relevant as possible and get their thoughts. I’d probably start with the person that’s most familiar with your work and who you are most friendly with. It’d be even better if this person is on the FIG team as there could be a more natural fit.
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