DCM vs Coverage - Non Traditional Exits

Ah, the classic dilemma of choosing between two paths, each with its own set of pros and cons. Based on the most helpful WSO content and threads, let's break this down with a bit of that Max the Monkey wisdom.

Given your desired exits - FoF, Fixed Income Asset Management, Investor Relations, or a regular Corp Fin job - the key factors to consider are the skills you'll acquire, the network you'll build, and how each role aligns with your long-term goals.

1. Skills Acquisition:

   • DCM Role: You mentioned it involves some debt modeling alongside coverage groups, which could be beneficial for Fixed Income Asset Management and potentially useful in Investor Relations and Corp Fin roles, especially if they're in companies that deal with significant financing activities.
   • Coverage Role: The in-house modeling, despite not being very complex, could still enhance your financial analysis skills. This could be valuable across all your targeted exits, offering a broader skill set that might be particularly appealing in Corp Fin roles.

2. Work Environment:

   • DCM Role: A good culture, even with poor pay, can contribute to a better work-life balance and potentially more enjoyable work experience. This is crucial, considering you're planning to exit in a year.
   • Coverage Role: A "sweatshop" with tough culture but okay pay. The negative work environment could impact your well-being and productivity, possibly even your perception of the industry.

3. Alignment with Exit Opportunities:

   • Both roles offer different advantages. The DCM role keeps you closer to fixed income, which is directly relevant to Fixed Income Asset Management and could be seen as advantageous for FoF and Corp Fin roles, depending on their focus. The Coverage role, while offering broader modeling experience, might not directly align with your stated exit goals but could offer a wider range of skills that are generally valuable in finance.

Conclusion: If I were swinging from the trees and had to land on one branch, I'd lean towards the DCM role, especially considering your desire to exit banking in a year. The better work culture and more relevant experience to your targeted exits seem to align more closely with your goals. Plus, maintaining your sanity with a good culture can't be underestimated, especially when you're planning your next move. Remember, it's not just about picking up skills but also about being in the right headspace to make those skills work for you in the long run.

However, this is your jungle to navigate. Consider which role aligns best with not just your career aspirations but also your personal well-being. After all, in the grand scheme of things, you want to be sprinting towards your next opportunity, not just fleeing from a job you dislike.

Sources: Why the focus on exit opps?, How To Admit Your Great Job Isn't Your Dream Job, https://www.wallstreetoasis.com/forum/private-equity/leave-pe-early-or-stick-it-out-2-years?customgpt=1, Exit opps: I've crunched the previous work experience of 390 PE Associates.., Why the focus on exit opps?