Corporate banking vs Management Consulting
Lately I've been thinking a lot about alternatives to the IB > PE career path that have a better WLB while still having good earning potential. 60-65 hour weeks with occasional 70+ are okay but consistent 75+ hours a week with the potential of 100 hours is hell. Doesn't get much better in PE.
This made me start to consider Consulting, even tier 2, or ECM/DCM over M&A/Coverage. But some capital markets groups still work a shit ton and I don't know if I would enjoy the travelling in Consulting.
And then Corporate Banking popped into my head. People already discuss as it one of the best careers but I never really considered it until now. It actually sounds very similar to Consulting in terms of comp and hours right out of undergrad. I think I prefer it because of the lack of travel. However, I couldn't really find much info about career progression or what the comp and hours look like above the associate level in CB which makes it harder to compare and see the difference 5 or 10 years down the line. So I thought I'd ask all of you for this info and your thoughts on this.
Which is the better long term career for someone who wants to make cash moneys while still having a somewhat decent life, Corporate banking or Management Consulting?
With the assumption that you're a fairly competent individual, what does the progression of the comp and hours look like at each stage and in which career is it faster/easier to move up?
Corporate banking is awesome in the right group but there is a ton of variation across the street/even within banks. I personally enjoy what I do, the work is interesting, the pay is great (this will only be true if you're in IBD) and we usually are done by 8-9pm. There are definitely pros and cons though. I think its really important to be in a CB group with high deal flow and the capability to consistently lead syndications. Deals move pretty fast (at least compared to M&A) and you can get a ton of experience executing credit transactions. Maybe sounds dumb but I like how as an analyst I'm often responsible for coordinating all the lawyers drawing up credit agreements and I get to be a part of the negotiation process-- obviously not making decisions but ferrying changes around and discussing the implications with counsel can be pretty interesting and you start to really understand the game by seeing how CAs are created. Another high point is when your bank is leading the syndicate/JLA and you have some more responsibilities coordinating with other banks, and in general even if you are just participating in a deal you will spend a lot of time talking to people who work at other firms, which keeps things interesting and makes the job feel a little more "front office" as an analyst. I think both of these aspects give really valuable exposure. However, the credit analysis side of the job isn't very deep (typically corporate banking = IG only with rare exceptions, most HY goes to LevFin) and you will have to make these super long credit memos that are mostly qualitative stuff, or plugging financials into pre-built grading models. You might do a little modeling for a borrower without operating history or a sub-IG rating, but its not that intense. Because of this I don't feel like you build a ton of transferable skills, just general bond/credit market and industry knowledge. We'll see about exits, to be honest a lot of people do leave to do M&A but I have also seen some buyside/corporate stuff.
Couldn't agree more on your last point, so I stole your idea and made a post-- would be a great addition to the site and I think the interest is there.
I worked in IB first before switching to CB and I’ll just say working less hours (20-30) really does add up. I saw my Associates and VP’s make tons of money but noticed most of them were not going on vacations, not spending much time with their families and that just wasn’t the life I wanted to live.
Make no mistake, IB gives you the best exit options, but for me CB was the best balance of comp to WLB. I know plenty of young VP’s in CB that all earn over $300K a year and have time to go on vacations, spend time with friends and families and generally just enjoy their lives.
Yes, you will earn more in IB. But if $300K+ at 28-30 years old is “bad” to you then CB is not for you. It’s personally enough for me to live a very comfortable life, and when I hit Director level in a couple of years it will definitely be enough. The best part is that I don’t feel burnt out anymore like I did when I worked in IB. It’s a lifestyle gig.