Does FIG really pigeonhole you?
About to join a middle-market FIG group with a focus on insurance / reinsurance, and specialty finance. There’s occasional exposure to asset management and fintech, though fintech is limited to capital markets work.
If I decide to lateral to another coverage group at a different bank during my analyst stint, would groups like Tech, Healthcare, Consumer, or Industrials consider my resume?
Also, if I go directly into PE recruiting, would I be limited to financial services-focused PE funds? Or is it still realistic to break into generalist PE or even private credit?
bump
I honestly don't think it pigeonholes you at all, especially if you make good connections while in your FIG role. It is definitely a hot take, but I have seen people go to PE after several years in FIG because whatever group they were in provided banking services to the PE firm. Now, is that super common? No, but people do it.
Make friends in the group that covers PE and AM wherever you are (if you have groups like that) and play the long game if you really want to do PE. I have done both and I personally hate PE, the only redeeming quality is the comp once you're higher up. People are nastier, work is so much less fun, and i feel like most people start slacking once they get into PE which annoys the hell out of me. Everyone's exp is different, but those are my two cents.
As for your question of limiting yourself to financial services focused firms... It will be a hell of a lot easier to get in to those but you can 100% break into general PE and Private Credit. Just be a kind, humble person who doesn't take themselves very seriously but takes their work seriously, and you will end up where you want to be. Just don't end up in a PE firm that does B2B SaaS. Those firms are full of dysfunctional idiots.
Is it possible that I lateral to a different coverage group at a better bank from MM FIG?
depends on the bank that you are transferring from. If you're at a smaller firm like M&T, Citizens, or huntington that might be tough. If you're at somewhere like a truist, PNC, US Bank, or any large canadian bank, a lateral to another bank should not be too terribly difficult, even if it is to another coverage group I feel.
What’s wrong with PE firms doing B2B SaaS lol
Nothing really, just a lack of substance in the business model and investing in software is really hard. Unless the portco has a bulletproof product it is near impossible to scale MRR and ARR to get decent returns. My first ever internship was at a B2B SaaS Fund in KC and the fund was selling at pretty low returns tbh. The other two firms that we knew of in town were struggling and the few interactions we had with them were pretty nasty. I guess I shouldn't generalize but from the ones I know of in the midwest / chicago, its a really wack space.
Back in the day, it was moreso before a lot of groups took fintech and insuretech into the vocation
These days not really
No. FIG is paradise.
I'm at the crossroad of my career so a serious response would be appreciated
FIG is paradise.
Guy graduates college
“I’m at the crossroads of my career”
Lol chill bro
Can't really speak on the exits as I haven't left banking and don't have plans to in the near term but maybe can offer personal perspective on the skills you get. For context I primarily cover Brokerage, RIA, Reinsurance, and Spec Fin. Modeling is modeling, you are still going to be building operating models, cash flow analysis, LBOs etc. It can get very niche when you start modeling out product economics and getting into more actuarial analysis in relation to reserves and the reinsurance component of businesses but every industry has their own specifics. Spec fin is going to be balance sheet driven since you're dealing with lending businesses so most of your modeling is around recasting balance sheets and analysis on the portfolio itself, looking at cost of funds etc. Could argue its actually more tedious technically than a lot of other industries. The actual process of a transaction is the exact same as any other industries M&A process. People from my firm have gone into PE that isn't FIG focused. Realistically as an analyst, you are not an industry expert enough for you to be pidgeon holed because you sold PnC brokerages for a year.
Appreciate it. Would you say it’s possible to start with FIG and lateral to a different industry group? I chose FIG at my current firm just because the deal flow is comparably stronger
Yes, outside of college kids on WSO no one gives a shit if you were a FIG analyst. Your first year as an analyst you're practically useless anyway. I would recommend as general advice to focus on the job you have at hand and not worry about what your next is right away. Take the time to learn, absord knowledge from seniors around you, and actually try to get really good at your current role. A lot of what you will be doing is directly transferrable to the work an analyst in another sector will be. Also actually trying to understand your industry you cover vastly improves your skills in general.
Very insightful, thank you. Are you at a BB/EB FIG group? Will you hire laterals from MMs?
No, that's disgusting
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