Do Large Amounts of Exits Reflect Poorly?
Does a high percentage of turnover at the SA and analyst level reduce the perception, brand equity, or future exits of the firm/group? For example, if Citi's RE coverage group only had 20% of analysts do A2A and only 75% of SA return for FT, would this decrease how the street views that coverage group?
Context: I'm headed to a top MM investment bank in a group with a strong culture and good exits. Although I'm very excited about joining the group, there has been a very large amount of exits (mostly analysts and summer interns). Nearly half of the interns which got return offers did not accept. These interns headed to top EB and BBs like JPM (multiple which was interesting considering how small the group is), Evercore, Moelis, and Lazard. Analyst to associate conversation rate sits at slightly less than 25% (I assume that all analysts are offered after they finish their 2/3 years). Hoping to gain some context since I understand that the amount of exits across the board have increased even despite pay bumps.
I don’t think turnover has any bearings on the streets perception of a group. I can think of a few top groups that have had bad junior turnover. The deal flow has exploded at top groups, making the job even less sustainable for juniors. I think some of the same factors that drive junior turnover also drive a strong street reputation. Additionally, A2A conversion signals a weak group, not a strong group. Strong groups send analysts to the buyside. A2A was seen as a last resort at my bank (GS/MS).
I think the interns jumping ship for EBs is more indicative of your groups “street rep.”
20% A2A is pretty high
What would a typically A2A for a solid group (either at BB/EB/ or top MM)? I am surprised that it would be so low due to the pay and culture (I consider solid groups to be those with good culture - for IB - as well as good deal flow).
What would a typically A2A for a solid group (either at BB/EB/ or top MM) *be*? Sorry for the error
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