Applying as a graduate or lateralling?

Based on the most helpful WSO content, here are some insights to help you with your dilemma:

Scenario 1: Returning to Your Current Employer

• Pros:

  • Higher Starting Position: You would start as a senior analyst (equivalent to Analyst 3 in IB terms), which means you won't lose the years you've already invested in your career.
  • Familiar Environment: You already know the company culture and expectations, which can make the transition smoother.
  • Potential for Internal Mobility: If your current employer has a strong internal mobility program, you might have opportunities to move into different roles or departments that align more closely with your long-term goals.

• Cons:

  • Limited IB Experience: Since your current role is M&A related but not within a bank, you might still face challenges when trying to lateral into a proper IB role later on.
  • Market Uncertainty: Given the current hiring market, there's a risk that lateral opportunities might not be as abundant or accessible as you hope.

Scenario 2: Applying for Graduate IB Analyst Roles

• Pros:

  • Direct IB Experience: Starting as an Analyst 1 in a bank would give you direct IB experience, which is highly valued for future career moves within the industry.
  • Structured Training Programs: Many banks offer comprehensive training programs for new analysts, which can be invaluable for building a strong foundation in IB.
  • Networking Opportunities: Being part of a graduate program can provide you with a network of peers and mentors within the bank, which can be beneficial for your career growth.

• Cons:

  • Starting Over: You would be starting as an Analyst 1, which means you might feel like you're losing a year or two of your career progression.
  • Competitive Market: The hiring market is tough, and you might face stiff competition from candidates with more direct IB experience.

Considerations:

• Long-Term Goals: Think about where you see yourself in the long term. If your ultimate goal is to move up the IB ladder, gaining direct IB experience might be more beneficial.
• Market Conditions: While the current hiring market is challenging, it's also important to consider the long-term outlook. The market can change, and having direct IB experience might position you better for future opportunities.
• Risk Tolerance: Assess your risk tolerance. If you're comfortable with the potential uncertainty of lateraling later, returning to your current employer might be a safer bet. If you prefer a more direct path into IB, applying for graduate roles might be the way to go.

Conclusion:

Both options have their merits and drawbacks. If you value direct IB experience and structured training, applying for graduate IB analyst roles might be the better choice. However, if you prefer a higher starting position and a familiar environment, returning to your current employer could be advantageous. Ultimately, your decision should align with your long-term career goals and risk tolerance.

Sources: Getting an MBA and coming back to IB, https://www.wallstreetoasis.com/forum/private-equity/going-from-mm-investment-bank-to-mega-fund?customgpt=1, Q&A: GS/MS IB Analyst —> Megafund PE Associate —> HBS/GSB Business School, Re-Doing 2 YR IB Analyst Stint, Capital Markets Analyst Trying to Lateral--Advice?