Banking Analyst Offer
Hi, monkeys, I've been working since this summer to secure FT IB positions as a senior from non-target without a junior internship, and the WSO community helped me tremendously. I did not get any IB interviewers or buy-side offers as I had hoped. But recently, I got an offer from a decent bank in DTLA for a banking analyst position:
"Banking Analyst I, is an entry-level position that will assist Relationship Managers and credit colleagues with new and existing clients. Responsibility will include but not limited to, credit requests through spreading financial statements, completing covenant calculations, identifying credit risks, research, analysis, pitch books, and other sales and credit support.
This program will offer participants the opportunity to rotate through various parts of the bank to provide meaningful work experience, senior leader exposure, and targeted educational opportunities to develop future leaders: Relationship Manager, Credit Officer, Treasury Management Officer."
Starting base salary: $29.81 - $37.55 per hour. Exact compensation may vary based on skills, experience, and location. This job is eligible for bonus and/or commissions.
There are 10% bonus and 5k sign up cash. Something around $70-80k per year total.
Essentially a generalist program where you work 6 months under different teams can be a great mentoring experience, as the company claims...
I still have half a year left in my non-target school to graduate. Do you think I should take the offer as an undergrad? Or if I want to go to buy-side jobs, would it require a different experience? Do you think money is good for West Coast?
P.S. my friend says to be careful what you choose as your first job, as it will define your career path.
Sounds like commercial banking? I think idk
Yes exactly, the bank called City National Bank
Lol I knew this was CNB just from the description. I work in the building across from your future office location 😉
If you have no other offers or prospective positions lined up, I would certainly accept the offer for now. As you are probably aware, the market for new Analysts is pretty limited right now, so being a non-target with no prior experience will make it difficult to break in, but not impossible. If you are set on IB or buy-side (I would honestly focus on IB if I were you, that should be more doable than buy-side out of a non-target undergrad), continue networking as hard as you can and try to land an FT offer and then renege on the commercial banking offer if you do receive an IB offer. Even if you do not get an IB offer, it would still be beneficial to expand your network for potential lateral opportunities in the future. Commercial Banking is a pretty good gig, albeit not one that will provide exit opps to PE or HF.
I have seen people lateral in to IB from commercial banking; it is not the easiest transition (you will probably have to start over as an Analyst I and end up at an LMM or MM bank), but there are harder positions to make the transition from. In regards to your friend's comment, your first role WILL NOT define your career path; it will certainly influence it, but you can always get an MBA down the line to reset, or like I said above, commercial banking can certainly open doors to get into IB after a year or 2. Lastly, $70k-$80k sounds about right for a 1st year commercial banking analyst role at a bank the size of CNB, but would probably try and get closer to $80k given the cost of living in LA.
Thanks man! It sounds like the best logical plan. My goal is definitely buy-side companies. I am grateful that I managed to pull this offer, so not in a position to think long.
Do you still think it will be almost impossible to go Private Equity after 2 years of a Commercial banking Analyst? I heard the trend for IB slowly changing, but have no expertise.
Yes, I would say it is a very uphill battle to go to PE from commercial banking. I personally do not know anyone that made the jump to PE directly from commercial banking, and I do not think I've come across that profile in my online searches. That is not to say there is not anyone out there that has done it, but the profile of firms that would be receptive to a CB background are probably tiny LMM boutiques. Even then, you would still be competing against people from tiny LMM IB boutiques, or people with more relevant experience (consulting, valuation, etc.). Your career is a marathon, not a sprint. If you end up at the commercial banking position for FT, put in a year or 2, lateral to IB, and then use that as a stepping stone to PE. 1-2 years in the context of an entire 25+ year career is nothing.
No shot at PE from this role, but I would accept it for now (a job is better than no job) and you can lateral to IB or do an MBA down the line
I am going to go out on a limb here and say it's a distraction
If you want to be in IB/PE then you need to get into IB/PE pronto. That might mean a masters degree, or joining a really disreputable LMM IB shop.
Otherwise you are going to face the question: why credit?
You meant I will stuck being a credit officer as my career after 2 years of program. Is it something IB/PE don’t like?
In my view “banking analyst” sounds close enough to get a relevant experience etc. because for this program they will rotate me each 6 months for different teams.
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