Advice: Small boutique vs top IB
I'm currently an analyst at a small boutique, unknown brand to most people. We have pretty good deal flow in the lower MM space with deals typically around $50-100m in size.
Culture:
The great thing about my boutique is the fact that the hours are fantastic. As an Analyst, I work 9am - 8pm Monday to Thursday and 9am - 5pm on Fridays. I rarely work weekends and it also has a great culture not only in terms of hours but just the team environment of seniors being respectful to juniors and going for team drinks etc.
Pay:
Pay here is pretty decent, it's marginally below market standard but nothing noticeable. In terms of total comp, it works out to be 10-20% lower at the analyst/associate levels - unsure what it looks like VP+.
However, it actually works out to be significantly higher than what BBs / EBs pay on a per hour basis. I.e. I work 50-60 hours per week vs 90 hours at a BB/EB.
Dilemma:
I'm unsure what I want to do long term, a boutique such as mine doesn't offer the best exit ops. So I explored lateralling and am now in the process with a top tier 1 investment bank. The did warn me that on average analysts work till 1/2am during the week and work most weekends but said they liked me and will put me through to the next round.
Advantages:
a) I still don't know what I even want to do, I don't think I want to stay in banking so I could end up recruiting for buyside or go corp dev etc. or I could just end up staying in banking.. who knows but this could give me better exit ops.
b) bigger transactions, more interesting work etc.. One of the burdens of working at a small boutique is a lot of admin/documentation work that would usually be handled by back office at a BB.
Disadvantages:
a) the hours are awful, I'm 28 and feel I no longer have the young mental capacity to grind long hours, I enjoy my personal life and sleep.
b) despite the total comp being slightly better at the tier 1 IB, I'll actually be taking a pay cut on a per hour basis.
What's everyone's thoughts? do I currently have it really good at a rare firm that gives great hours with decent pay? or is sacrificing the work-life balance for a top tier 1 worth the exit ops / fact I have no clue what I want to do long term.
Thank you.
Following
If I wanted to stay in IB, I don’t think I’d be trading away my <55 hour/week analyst gig anytime soon (especially if there’s good deal flow and upward mobility), and definitely not for a 10% raise on 50%+ more hours. Really depends on how much you care about breaking into PE, HE, et cetera.
Good deal flow and progression, I've been told there is room to promote to associate over the next 1-2 years. I just have no clue what I want to do long term, I don't think I want to stay in banking but at the same time it's not like I'm super keen on buy-side really, it's all very similar. Although I would prefer the buy-side given the work sounds more interesting and it's less of the salesman type role in banking.
If your pay is good enough like you say, I would not think an extra 30-40 hours a week is worth it. How are the exit opps at your firm currently? You have it pretty good otherwise, about as good as can be expected in IB
No real exit ops, most people here are quite keen on staying in banking and never leave given the good work-life balance. Over the past 5 years there have only been 3 juniors leave, 1 went to buy-side, 2 went to an EB. Buy-side recruiting from here is quite tough given the small brand.
I'm just so uncertain what I want to do long term, I don't think I want to stay in banking (honestly the only reason I'm doing this is for the pay, the whole sales/pitching element of seniors doesn't excite me, I'm a massive introvert) but at the same time, I'm not sure what else I could do.
Personally I would stay where you are and enjoy that ride. I imagine the hours, lifestyle and pay would get significantly more attractive vs a BB as you progress up the ladder, and from what you've said it seems as though your current boutique is somewhere you could have a long, enjoyable career at.
I will say, however, making the lateral to the BB gives you good optionality. Not only could you recruit into the buyside (if that's what you want to do), but if you come to the conclusion that 80-100 hour work weeks aren't for you, you can always go back to your current boutique or something similar. I presume they would be delighted to have someone with analyst/associate experience at a BB in their ranks.
Agree that this could be a pretty good role as I progress, although I'm not sure leaving then coming back is an option because of how small it is here, people take others leaving quite personally / to heart. For example, the last time someone left, it was very awkward for the following weeks and everyone was pissed and took it very personally.
We're a team of 5-10 people so you can imagine how close everyone is and how impactful someone leaving could be to the team, which would leave a big gap.
Oh ok, yeah that definitely changes it then as you'd probably end up shafting your current boutique. In that case I would definitely say to stay, ultimately you work to give yourself the best lifestyle and it is clear you will get that at your current firm and you're going to have significant opportunities to grow there too.
Look if you want to leave banking then going to a brand name shop can help. That is leaving to PE/HF/CorpDev.
I have interned at a LMM shop and got on very well with the guys over there, currently at a BB but would in the long run going downstream to MM/LMM shops. These guys work 50% of the hours that seniors do. The 3 partners would rack anywhere above 500k per year, but they own the firm, have a good time, revenue down for a year oh well let me play more golf with my buddies it'll land deals next year. My point is that banking can be a pretty cushy job in such niches. You will make good money (although not fuck you money), but you will have a great social/family life. One of the was the owner of the local football/rugby club, was going to all the games - not a thing you would do if working for an MM/EB/BB IB.
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