Career Crossroads: Leaving Banking for Asset Management
I'm an A2A associate at a BB in a niche capital markets group (i.e. Structured Finance, Public Finance, Securitization, etc.). I have an opportunity to move to a major AM (PIMCO, Capital Group, BlackRock, etc.) to do credit research in the same asset class. I'm leaning towards making the move, but could use help in finalizing the decision. My main considerations are outlined below.
Summary: Current job in banking is good (nice mix of pay and wlb), but I'd like to try something new. However, I'm afraid of the pay cut and "pigeon-holing" impact of AM
Banking
- Great culture
- Hours are ok (typically 60 - 70 hours)
- Top performer with a clear path to reach VP+ with a line of sight into mid-six-figure compensation
- Travel is starting to pick up and will continue to grow as I get more senior (negative)
- Day-to-day is becoming dull and I don't have much drive for the role anymore
- Hours should be a bit better (+/- 60 hours)
- No MBA needed to progress (positive), but I will be encouraged to pass the CFA (negative)
- Limited travel (positive)
- Will forgo my 2025 bonus to make the transition and will take a base salary cut
- Compensation long-term is worse (will likely be in $250 - $400k range for the long run) unless I am a superstar
- "Dead-end" job, which will close other exit opportunities available to me in banking
Asset management is one of the exits. Depending on the firm(Blackrock or PIMCO would instant yes), I'd strongly consider.
Stop trying to optimize away from "pigeon-holed". Eventually everyone has to specialize and become really really good at one thing. When you're young, the best thing is to find what that thing is, but as you age you should really become a specialist. Don't view going into an AM and becoming a great person for credit as a bad thing. If you kill it in credit at an AM, you'll have way more(and higher quality) opportunities than if you had stayed in banking trying to hedge your options. So if you actually think you'd be good at the work, and it seems interesting, I say make the move.
Thank you, this is helpful. I'm leaning towards the AM offer and agree that the ceiling could be higher if I turn out to be excellant at it.
What about BlackRock and PIMCO would make you instant yes? Are they considered to be that much better than their peers from a prestige pov?
Those are just names I personally would say yes to in the posters position. Prestige doesn't really affect me anymore as I'm in trading and it's way more "put up or shut up" than banking or PE. I would say yes just because they're great places to be and have a career. I don't know enough about AM to comment on many other firms, but I know a lot of alumni at PIMCO who love it.
OP here. As an update, I accepted the job offer and will start in the new year. Thank you for the advice.
Good to hear. Feel free to PM me if you want to talk markets, I love to talk about them with knowledgeable people. GL
CFA is not mandatory when you make it in. It will help you shine, but solid academic achievement and good experience is more important than passing a couple tests. That being said, if everyone above has it then you will likely need it to advance to senior levels.
For what it's worth, I think you are materially underestimating the comp. I make 200k+ at a much less prestigious/intense shop (literally 40 hour weeks) with 4 yrs exp
If you intend to have a long career I think AM is certainly the way to go
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