Debt Collector to IB?
Hello,
I am eyeing possibly doing an MFin program in order to get break into IB. I was a fairly successful undergrad student at UC Berkley, getting a 3.75 gpa in economics, and started a debt collections business the early part of my senior year, which I was able to grow with some friends to the point where I pocket ~45k/yr. It isn't much but after a few years of doing that (I am 24 now), I am contemplating going back to school and break into high finance, which is something I wanted to do initially. I don't believe I have the work experience necessary for a good MBA program, but I do believe I have the connections and grades for a 'good' Mfin program.
1. Will my past as being a founder of a debt collection agency hurt me due to the negative reputation of the industry? I followed all regulations so I assume I am in the clear in this aspect.
2. Am I in over my head (For reference, while NYC is the goal, I would love Chicago or Southern placements)
3. Will I have to fully divest from the business if I were to join a major institution (I assume so?)
You need MBA. MFin is essentially a fifth year for people still in college who were close and just need an extra season of recruiting - you need the whole pipeline that MBA brings, MFin has a high chance of being a waste of money as recruiting would happen before you even start classes. Go get an FP&A / corp fin job for a year or two to get traditional work experience, work on your app in the meantime.
To answer a few of your questions
1. Don't think it'll be a problem, people in finance are capitalists for the most part
2. Should be fine with MBA. If you want Chicago or the South, go to UChicago or Rice to get into Chi/Houston IB (Houston is brutal, be aware. Do a search on here). Otherwise M7 or top 15 should be fine if you want NY.
3. Yes
Thank you for the reply. I am assuming that the reputation of the financial firm would matter somewhat for MBA admissions, I will look more into it in the coming weeks. I'll start networking at some of the firms in my region.
What matters most is how you frame your experiences and the lessons you've learned. If you've managed your business ethically, adhered to regulations, and can speak to how the experience has equipped you with unique skills or perspectives, it shouldn't necessarily hurt your chances. Highlight the entrepreneurial skills, leadership, and financial acumen you've gained. However, be prepared to discuss this aspect of your background in interviews, focusing on positive outcomes and learnings rather than the industry's negative connotations.
You have a unique background, so it may catch the eye during screening. Having said that, entrepreunerial experience is more highly valued in consulting than IB. Pursuing an MFin could be a sensible thing to do, given the current macro backdrop.
If you want more specific, tailored advice, please reach out via the mentoring scheme. I'd be happy to advise.
Dude, if you're going to comment on every single post with your mentorship link, you should at least make the ChatGPT copy and pastes less obvious.
What's wrong with you to start a debt collection business?
It wasn't the best feeling attempting to collect on credit card debt against some people initially (when it was a two man operation), especially when plenty were not in the best financial position. A lot of people just have bad experiences or know someone who has on the receiving end of debt collections. We usually worked something out. It become a hell of a lot easier after we got some contracts to collect debts to regional logistic companies, and we mostly had to deal with corporate accounts payable.
"I don't have enough experience" - by the time you start MBA, you would be 25 to 26 yr old? That's not too young. By the time you start, you would have +3 years of founding and running a business. That's enough experience.
"High finance" - you need to elaborate. If you are looking for a coverage team providing strategic advisories, then you need an MBA. If you are looking for more quant-related roles, mFin would be better. If former, you should also think about which industry you want to pursue- specialty finance, business services, fintech, etc.
I don't know what kind / size of debt collection you were running, but in general, it could be a highly relevant experience in some fields. While there is not a lot of information here, it seems like you need to first figure out which part of your experience fits well into the "high finance" you are referring to.
The end game would ideally be a hedgefund, I am eyeing investment banking as an entry for this role.
Quia doloribus praesentium nihil voluptatibus. Fuga a dolorum eveniet laboriosam.
Nihil quod et unde. Voluptatem quos at commodi fugit harum delectus. Voluptatem deleniti vero explicabo quibusdam dignissimos ut provident. Commodi atque placeat dolores et expedita non sit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...