CHI v. NY

When weighing a slightly more prestigious firm in Chicago (CHI) versus a less recognized one in New York (NY), here are the key metrics and considerations based on the most helpful WSO content:

1. Career Goals:

   • If your long-term goal is to work in NYC or target mega-fund (MF) private equity (PE), being in NY might provide better access to those opportunities. Chicago tends to lean more towards middle-market (MM) IB and PE, which may not align with MF PE aspirations.
   • If you're open to staying in Chicago or targeting MM PE, the prestigious firm in CHI could be a better fit.

2. Compensation:

   • Base compensation for junior bankers is generally the same across locations, but bonuses can vary. NY bonuses might be higher due to deal flow and firm priorities, but the cost of living in Chicago is significantly lower, making your dollar go further.

3. Cost of Living (COL):

   • Chicago offers a much more affordable lifestyle compared to NYC. You can get better apartments with amenities for 50-60% of the cost of comparable NYC apartments.

4. Work-Life Balance:

   • Chicago is often noted for having a more enjoyable and balanced culture compared to NYC's intense, high-energy environment. If lifestyle and comfort are priorities, CHI might be the better choice.

5. Sector and Deal Flow:

   • Consider the firm's sector focus. Chicago is strong in industrials and middle-market deals, while NYC offers broader exposure across sectors and larger deals. If the prestigious CHI firm aligns with your sector interests, it could be a strong advantage.

6. Networking and Exit Opportunities:

   • NYC has a larger pool of bankers and PE firms, which can enhance networking and exit opportunities. However, if you're good at what you do, demand exists in both cities. Chicago also has strong MM PE shops like Madison Dearborn, GTCR, and Vista Equity.

7. Firm Reputation:

   • A prestigious firm in CHI might carry more weight on your resume than a less recognized one in NY, especially if you plan to stay in the Midwest or target firms that value the brand.

8. Personal Preferences:

   • Consider your personal preferences for city life. NYC offers unmatched energy and opportunities but can be overwhelming. Chicago provides a cleaner, more comfortable environment with a vibrant social scene.

Ultimately, the decision should align with your career goals, lifestyle preferences, and the specific opportunities each firm and city can offer.

Sources: Why not Chicago over NYC?, Is Chicago IB Pay Lower than NYC?, Does Prestige in Commercial Real Estate Development Exist? Google/Blackstone/McKinsey equivalents?, Is Chicago IB Pay Lower than NYC?, Chicago BB and EB Ranking