Corp Dev Analyst -> Corporate Banking Associate?
Currently a Corp Dev analyst at a public financial services firm. I did an IB analyst stint at MM bank before lateraling into my current role.
I’m thinking about leaving as I don’t really see a future in my current seat. Additionally, my comp SUCKS. I make less than the first year analysts now make at my firm. I’m still pulling 60 hour weeks in Corp Dev, with a decent grip of work on the weekends at times. I thought this would be a really interesting role, but it’s been disappointing. There’s a limited amount of strategy and limited deal flow, but lots of operations work (‘strategic finance’). There’s minimal opportunity for comp increases and slow progression (even on a relatively lean team).
I got hit up for a BB Corp Banking Associate role, and am now midway through interviews. Here are some reasons I’m interested in doing this:
- Hours would still be decent
- Team focuses on a vertical I really want exposure to
- Team seems to be a better fit than my current one
- I’ve always been interested in lending and generally like the banking business
However, I feel conflicted about this for a couple of reasons:
My comp currently sucks. I live in a Tier 1 city and need to make more money. ** Any idea what comp looks like for a BB Corporate Banking Associate in a T1 city (think SF/NY/LA/CHI)?** I have IB and Corp Dev experience.
Alternative 1 would be to recruit directly for private credit, as I really like that space. However, I’ve found many want lev-fin experience for this, and my experience is pure M&A.
Alternative 2 would be to jump back into IB in a strong group, deal with the grind, and recruit for better buyside roles in 1-2 years. I have already done an analyst stint, and I could do it again, but not sure how much gas I have in the tank to pull 100+ hour weeks back to back.
Any thoughts? Feel stuck and would really appreciate any light more experienced members could shed on this.
Bump
Associate 1 comp at BB is around $125-145 base with 30-50% bonus (raises taken into account)
Advocate of CB, good wlb with some weekend work but nothing crazy.
Based on your post, I would recommend CB. AS1 is easily pulling 200K+ under current comp structures and once you get a few underwritings under your belt, it can easily be a 50-55 hour/week position.
My title is outdated, but I was an Associate in CB who made the transition to PC and the difference ultimately boils down to marginally better comp for worse hours and a chance to work on a broader, more complex array of financings.
I almost wish I stayed in CB. About a year into each level, you can essentially do the job with your eyes closed, and there’s a clear path for comp/responsibility progression.
The few things that I will caveat about CB is that the ability to do the job with your eyes closed comes from the monotonous and administrative nature of the work. All of the KYC, onboarding, internal rating stuff is boring, while most of the deals, credit memos, and questions asked from internal committees are similar, one way or another. That said, you learn a lot about the companies in your industry, the products your bank offers, and you become an expert on underwriting bank debt.
Honestly a good summary of CB life and would have to agree on all points.
Super helpful. Thank you.
As an update - I did get the AS1 offer at a large European bank, but it was lighter than these numbers. Base of $125k, bonus range around 40-50%. Granted, they did say that AS3s are in the $160k range base, with similar bonus %.
I think I liked the team overall and I will probably move forward, but still feel like the base is light for this market and can’t quite shake that feeling that I should explore my options a bit more. Not sure.
Do you guys feel like there’s some exposure to modeling in CB, and if I didn’t like it after 1-2 years, that exits to Private Credit are possible? I also have a leveraged lending offer, but hesitant to take it as the comp is actually even lower ($100k base + 25% bonus.. ridiculously low, and they know that, but claim they have good WLB).
Is this in NY? If it is then you should negotiate pay. Not sure how they can be paying $125 when they are definitely fully-aware that most BB's pay that to A2s. I can't tell you whether or not you should take an offer, but I'll lay our some things to look for, regarding your questions.
Modeling and exits are going to be a pretty large function of how leveraged the book is. Leveraged or IG, you will be modeling cash flows, but the former will add an entire dimension of full 3-statement and valuation work, along with an additional layer of complexity surrounding key terms and due diligence. A transition to PC is certainly possible either way, but again, the more leveraged the book is the better.
Those items with also be a function of the bank's status in the syndicate. Deal experience acting as Admin or JLA is infinitely better than being a Lender/Managing Agent/some other meaningless title on deals, and will really help when recruiting outside. I would take a look at the credit agreements for some companies in the sector your offer is for and try and get a sense of what role they play with their clients.
My advice to you would be that if you want to exit to PC in 2 years, then just try and recruit for it now. If you don't know what you want to do, and want to leave your options open, then do some of the due diligence I mentioned above and base your decision off that. If you can see yourself being in CB long-term, then try and up the pay, but if its already a bit more than what you're getting now, then seriously consider accepting it.
All of the same goes for the LL offer, but unless they up the pay, frankly IMO it's just too low to accept.
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