Are Target Schools still worth it?

Based on the most helpful WSO content, target schools still hold significant value, especially for landing investment banking (IB) roles at top-tier banks in major financial hubs like New York or London. However, the landscape has evolved over the past decade, and there are a few key considerations to weigh:

1. Reputation and Placement Power

• Schools like HEC, LBS, St. Gallen, Bocconi, and others you mentioned are highly regarded in Europe and have strong placement records in IB. For example, MSc Finance graduates from schools like LBS and Bocconi have historically placed at top firms such as Goldman Sachs, Morgan Stanley, and JPMorgan.
• European master's programs are particularly popular in London, and their alumni networks and career services often provide direct pipelines to front-office roles.

2. Cost vs. ROI

• Spending $100K+ on a master's program can be justified if it significantly boosts your chances of breaking into IB. The average compensation for IB roles (e.g., $168K for 1st-year analysts) suggests that the investment can pay off within a few years if you secure a position at a top-tier bank.
• However, the opportunity cost and debt burden should be carefully considered, especially if you have access to lower-cost alternatives or scholarships.

3. Changing Dynamics

• The talent gap between target and non-target schools has narrowed in some cases, as noted in WSO discussions. Non-target students who hustle and network effectively can still break into IB, though the path may be more challenging.
• That said, attending a target school still provides a significant advantage in terms of access to on-campus recruiting, alumni networks, and brand recognition.

4. Geographic Considerations

• If your goal is to work in New York, some European schools may not have as strong a presence or alumni network in the U.S. compared to London. Schools like LBS and Bocconi are better positioned for London IB roles, while U.S. target schools might offer better access to New York opportunities.

5. Alternatives

• If the cost of a target school is prohibitive, consider semi-target schools or in-state flagship universities with strong finance programs. Networking and leveraging resources like WSO guides can help bridge the gap.

In summary, target schools remain worth it for IB aspirants, especially for those aiming at top-tier banks. However, the decision should factor in your financial situation, career goals, and the specific school's placement record in your desired region.

Sources: Worth Attempting to Transfer from Semi-Target to Target?, Target schools for IB, https://www.wallstreetoasis.com/forum/job-search/ibd-sa-after-graduation?customgpt=1, Target students who don't make it, Top Target Status Losing Value