BB IB vs Buyside Offer in Southeast Asia
Hi all,
I am currently based in one of the countries in SEA (non-Singapore) and fortunate enough to have two offers, one a buyside offer from an investment conglomerate (not a fund, think of it as a balance sheet investor ala Berkshire Hathaway and has a diversified growth/control investments run by one of a well-known individual in my country) and another from a top BB IB (MS/GS/JPM/BofA). For context, I am 2 yrs out of college and previously worked with 2 companies, one with a regional PE firm and another in a permanent capital vehicle/fund of a regional conglomerate. For short-term, I want to find a career where I can stay 3-4 years in before I take my MBA, while long-term I'm thinking of moving into a larger PE firm/start my own business.
For those who don't know the finance landscape in SEA, it is hard for IB analysts to exit into PE as the number of funds in SEA are highly limited and all of them only hire sporadically with only 2-4 seats available at each firm. MFs are basically non-existent in my country as it is covered by Singapore office, which is also the HQ of all the BBs in the region. Majority (~70%) of these IB alums from Singapore went A2A, while the rest exit to MF/LMM PE/Singaporean SWF. Sadly, I don't think I will have the same pool of options to choose from (not that the options are abundant anyway) since I'm part of the satellite office. Also note that I will be the only analyst in my office with 2-3 VPs/ Directors as I'm in the country coverage group, while the industry and product groups are in Singapore/HK.
Some pros of the BB offer that I can think of:
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Good brand name, will be easier for me to get recognized if I want to move to another PE firm and by admission officers
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Pay is 20-30% higher than what I will make at the buyside offer
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Rare opportunity to get this offer; it is very rare for the office to hire an analyst since they only hire to replace churn. Because of this, I think I will only be one out of a handful people in my country with BB IB experience.
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People are very nice, and heard culture is not cut-throat
Cons of the BB offer:
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Exit options are fairly limited, this other buyside offer that I have is one of the typical exit opps from those bankers anyway
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More interesting work at the buyside offer; work will be skewed 60% on M&A and financing projects for our portcos while 40% in assessing new investment opportunities, where I get to lead the projects early on. Also got the opportunity to rotate geographically and be placed at the portcos for full-time if I want to at the buyside offer.
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Hours will be around 80-90 hours/week on avg. from several alums of the office that I talked to, while the buyside offer averages from 50-70 hours/week on avg.
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Currently have a long-term GF and family that I see every week, and also have hobbies on the weekend that I don't want to sacrifice. Due to the hours and unpredictability of it, am 80% sure I will lose my GF.
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Won't receive the same training as those in NYC/SG/HK as I will enter not as a first year
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I want to find a place where I can stay for >3 years before MBA; I don't think I have time to prepare for GMAT and MBA/grants&scholarship applications if I choose the IB offer
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Better camaraderie and culture at the buyside offer. Team is fairly large and people are super fun since my friend is also there. Personally, its hard for me to work alone in a cubicle/at home alone.
I am personally leaning towards the buyside offer after weighing the pros/cons, but can't stop think about the IB offer since it's such a rare opportunity. Would really appreciate your guys' thoughts!
GIC?
My super smart friend had the same conundrum and chose gic because the pay is better + good exits and Singapore is on the comeup
Not GIC sadly, would absolutely pick this if I had the offer though
lakakahakaka calling for help
If you're at a BB IB in their Southeast Asia office (non SG) you'll be in country coverage and likely doing all the crap work as an Analyst - from what I've seen the country cov juniors do the internal kyc processes, internal approvals, lots of pitching / decks for that etc. Not a lot of real modeling or creating IMs etc. Maybe it's different at this BB but would really recommend diligencing that - otherwise the buyside offer seems significantly better from what you have said, if it is true
Have asked around; ~50-60% spent on execution (mainly IMs/pitches) with barely any modeling work, though hours are comparable to SG/HK
Given that you are still early in your career, optionality and career trajectory should be the focus. At face value, both seem like solid options, but the question is where will you be in 5 years at either place? Career tracks in Asia are generally much more longer term and much less restrictive compared to the U.S., where sellside and buyside have very structured windows of entry. Plenty of people jump back and forth mid-career and even late-career in Asia.
SEA local country teams at BBs usually have a clear ceiling for promotions. There are usually 1-2 MDs that run that kingdom and are unlikely to give up their relationships. And like you mentioned, the deal execution experience isn’t great as that is usually handed off to the HQ or regional HQ teams. I would temper your overall expectations on modeling experience in Asia. Deals are still mostly capital markets driven. However, you will have the opportunity to switch over to the regional HQ where the ceiling is much higher, with the potential to come back out to your country down the road as the senior banker or to another high profile job on the buyside given your experience. The network and relationships that you build across colleagues, former colleagues, and clients at a BB are unmatched. That will be irreplaceable down the line.
The conglomerate job may seem more interesting now, but I would also note that SEA conglomerates are generally very political, and without the right family (or in some instances political) background, the ceiling will be quite low. I do not know your personal situation, but that is something to consider, as to whether it is a pro or a con. Separately, optionality will also be more restricted. Many SEA conglomerates are facing balance sheet pressures to divest a lot of their businesses currently due to a lot of shitty investments. You may have the opportunity to jump into banking if layoffs happen if you can build good relationships with bankers, but the job market will be pretty saturated with laid-off bankers in Asia over the near-term.
I do not have the perfect answer for you as you also have a number of personal considerations, but this would be my thought process. Either way, no need to sweat it too much, as both should be good options, and people’s careers are not as locked in as some might think.
Super helpful, thanks a lot :))
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