Career in ib/LevFin vs. buy side? (2+ years in)
Looking at LevFin (at a Balance Sheet bank), it may even be more achievable vs. M&A coverage perhaps to build a long career. There's a fair amount of flow business - sure you need relationships, but refinancings come and go and when m&a brings in an lbo you come along as well.
Plus Banks have become very good at manipulating and kinda guiltripping juniors into staying or making it look like a stupid move
Many of the posts here are US-oriented, where people go to a fund for 2 years, then MBA and re-enter. This is less often the case in Europe/UK, but I would assume that juniors here have similar issues (e.g. limited upwards mobility).
Ignoring work life balance (looks like you have to hustle anywhere anyway) how reasonable is it to expect/hope to have a decent career on the buyside?
Curious to hear from people that are 3-5+years on the buyside - I guess there's some bias because those that cannot make it drop out. But do any of you regret the move?
Thank you!
Based on the most helpful WSO content, it seems like both paths have their own unique benefits and challenges.
In terms of Investment Banking or Leveraged Finance (LevFin), it's true that there's a steady flow of business and opportunities for career progression. You're right that banks have become adept at retaining their junior talent, often by highlighting the potential for growth and the prestige associated with staying in banking.
On the other hand, the buy-side also offers a compelling career path. It's true that the structure might be a bit different in Europe/UK compared to the US, but the core benefits remain. You get to work closely with investments, have a more direct impact on the fund's performance, and potentially earn higher compensation.
However, it's important to note that the buy-side is not for everyone. It requires a certain level of commitment and passion for investing. Some people find it more challenging than banking due to the increased responsibility and the pressure to deliver strong returns.
In terms of regret, it really depends on the individual. Some people thrive on the buy-side and wouldn't have it any other way. Others might miss the structure and predictability of banking.
Ultimately, the best path depends on your personal interests, career goals, and work style. It's a decision that requires careful consideration and, ideally, some firsthand experience in both areas.
Remember, there's no one-size-fits-all answer here. It's about finding the path that aligns best with your personal and professional goals.
Sources: https://www.wallstreetoasis.com/forum/private-equity/where-is-the-industry-going-for-young-professionals?customgpt=1, Banking -> Startup PM on who SHOULD join IB, The Allure of Investment Banking, Accounting vs Finance: Part 1 – Career Paths
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