Nov 13, 2024

Does it ever make sense being employee #1?

As the header suggests, I'm employee number 1 (for IPs, excluding management) at a small advisory shop doing opportunistic LMM/MM-sized merchant banking deals. Ignore analyst title, intentionally making this slightly ambiguous to mask my identity.

The directors all come from really high pedigree backgrounds in their past shops, and came together to set this up. Knowing their backgrounds, I was really keen to learn from these guys, hopefully gain some mentorship from them, and had no issues with a lean set up initially (have been part of lean set ups in the past so I knew what I was getting into), even though I had verbal offers at other more-established shops I turned them down as it felt like such a novel opportunity to build something out.

Deal flow has been extremely good and we crank work out at the speed of light due to how lean we are and there's close to zero bureaucracy beyond the required regulatory bs, but I'm starting to doubt whether there are any real merits to adding more lines to my deal sheet today when it's a smaller, basically (intentionally) unknown shop (i.e. does having 10 deals closed vs. 4 deals closed really mean anything when no one knows where you did your deals at?). Aim has also always been to pivot to the buy-side (initially was dead set on PE but over time I'm now open to all asset classes (PE/PC/Infra/Special Sits/etc.) due to exposure across these asset classes.

Just wanted everyone's $0.02 on whether this move made sense in the first place. I believe the understanding is that we will continue to build this out and hire more in the coming years + build brand name, but when everyday you're being grinded, it's hard to see past the next week/month/quarter (and yes I know I was pretty dumb not to get a clearer understanding or even get it in writing how fast management was going to build the team/brand).

So, has anyone been employee #1 or been offered a role where they'd be the first non-management IP, and why you accepted/rejected this offer? And for anyone in a hiring position at a larger institution, does such a candidate's background interest you enough to offer an interview for a lateral after a few years on the desk at this sort of shop? Thank you in advance, just trying to get some motivation to keep chugging away

6 Comments

Nepotism Nick

Most Helpful

I write this as I have been working consistent 90-hour work weeks for the past 6 months. You be number one for yourself. Not for anyone else, not for your VP, associate, or senior analyst. Yourself. Every blood, sweat, and tears you put into a live engagement is so you can get quicker, more efficient, and better. It’s so you can put that deal on your resume so you can lateral to a better shop to fulfill every damn goal you dreamt of.

You don’t be number one to be employed a little longer in a downturn market; you don’t go the extra mile at work and use that little extra brain power you have left when all you want to do is sleep, just to please your VP. You do this so you can be number one for yourself.

My grandfather, who immigrated to this country with nothing in his pocket, said, “If you’re going to do something, you be the best at it, even if you’re a fucking janitor.” God bless his soul, he passed away 14 years ago, but that stuck with me. Now, every day, I remember that I may be a W2 employee, but I always remember who I work for. Myself. Everything I do is for myself.

Never forget who you’re doing this for.

Quote

Report

Other

Authored by: Certified Investment Banking Professional - 1st Year AssociateCertified Investment Banking Pro

Analyst 2 in IB-M&A

Thanks Nick, love the story and energy, and really appreciate your points.

But just to clarify, I don't mean whether I should be aiming to be top bucket, I'm referring to literally being the first IP (investment professional) employee of the firm.

Quote

Report

Other

Formula for Equation of Exchange

TechBanking

Nepotism Nick
I write this as I have been working consistent 90-hour work weeks for the past 6 months. You be number one for yourself. Not for anyone else, not for your VP, associate, or senior analyst. Yourself. Every blood, sweat, and tears you put into a live engagement is so you can get quicker, more efficient, and better. It’s so you can put that deal on your resume so you can lateral to a better shop to fulfill every damn goal you dreamt of.

You don’t be number one to be employed a little longer in a downturn market; you don’t go the extra mile at work and use that little extra brain power you have left when all you want to do is sleep, just to please your VP. You do this so you can be number one for yourself.

My grandfather, who immigrated to this country with nothing in his pocket, said, “If you’re going to do something, you be the best at it, even if you’re a fucking janitor.” God bless his soul, he passed away 14 years ago, but that stuck with me. Now, every day, I remember that I may be a W2 employee, but I always remember who I work for. Myself. Everything I do is for myself.

Never forget who you’re doing this for.

Great comment. My grandfather always said work for yourself because no one else gives a crap (he used a different word).

Quote

Report

Other

Authored by: Certified Private Equity Professional - PartnerCertified Private Equity Pro

WSO Monkey Bot

Based on previous WSO threads, here are some insights on being employee #1 at a small advisory shop:

Merits of Being Employee #1:

Learning and Mentorship:
- Working closely with directors from high pedigree backgrounds can provide invaluable learning opportunities and mentorship.
- Exposure to various asset classes (PE, PC, Infra, Special Sits) can broaden your skill set and knowledge base.
Deal Flow and Experience:
- High deal flow and a lean setup can accelerate your learning curve and provide substantial hands-on experience.
- Closing multiple deals, even at a smaller shop, can demonstrate your ability to handle significant responsibilities and work efficiently.
Building Something New:
- Being part of a new venture allows you to contribute to building the firm's brand and reputation from the ground up.
- This experience can be rewarding and provide a sense of ownership and accomplishment.

Potential Drawbacks:

Brand Recognition:
- The lack of a well-known brand can be a challenge when trying to leverage your experience for future opportunities.
- Having multiple deals on your resume may not carry the same weight if the firm is not recognized in the industry.
Uncertainty and Growth:
- The uncertainty about the firm's growth trajectory and timeline for building the team/brand can be stressful.
- Without a clear understanding or written agreement on the firm's growth plans, it can be difficult to see long-term benefits.

Considerations for Future Opportunities:

Lateral Moves:
- Hiring managers at larger institutions may be interested in candidates with diverse deal experience and a demonstrated ability to work in a lean, high-pressure environment.
- Highlighting your hands-on experience, deal flow, and the mentorship received can make you an attractive candidate for lateral moves.
Networking and Reputation:
- Building a strong professional network and maintaining a positive reputation within the industry can help mitigate the lack of brand recognition.
- Leveraging connections and recommendations from the directors can also enhance your prospects for future opportunities.

Conclusion:

Being employee #1 can offer significant learning and growth opportunities, but it comes with challenges related to brand recognition and uncertainty about the firm's growth.
Weighing the immediate benefits of hands-on experience and mentorship against the long-term uncertainties is crucial.
If you aim to pivot to the buy-side or other asset classes, focus on building a strong network and showcasing your diverse deal experience to potential future employers.

Hope this helps! Keep chugging away and make the most of the unique opportunities you have.

Sources: Current IBankers: What would you do if a summer candidate reneged another offer to sign with your firm?, Why We Hired a Non-Target 1st Year - IB Analyst, Nonlinear Career Tracks - Anyone on one?, Why We Hired a Non-Target 1st Year - IB Analyst, What was your first deal?

Quote

Report

Other

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Intern in ER

Bump.

Quote

Report

Other

Intern in IB-M&A

Quam dolor omnis consectetur eum quo iusto. Sed laudantium qui omnis commodi mollitia quam.

Aliquam accusantium exercitationem labore assumenda repellat voluptas quia. Exercitationem vitae autem sequi sed harum exercitationem. Sed pariatur voluptas nostrum est. Ad rerum enim vel accusamus dolores. Occaecati eveniet aspernatur quasi quo. Sit delectus occaecati et minus.

Quote

Report

Other

Factor Market vs Product Market

+120	Hot take: I’d rather be at Desjardins than UBS for investment banking in 2026	19	19h
+102	Woman who emptied Knicks trashcan on street then stole it was DEI exec, worked at JPMorgan Chase	25	2d
+88	Stop sleeping on UBS - it’s pretty good	29	1d
+60	2026 VAULT PRESTIGE RANKINGS	33	19h
+49	Hardest interview experiences?	34	7h
+41	AI + Financial Modelling	15	45m
+31	Summer before college	25	1d
+27	Full-time lateral advice	8	1d
+26	Current State of UBS in North America	8	5d
+26	People who work/worked in FIG IB at a BB: does FIG really pigeonhole you as bad as people say?	5	1d

1	redever	99.2
2	BankonBanking	99.0
3	kanon	99.0
4	Secyh62	99.0
5	CompBanker	98.9
6	Betsy Massar	98.9
7	DrApeman	98.9
8	dosk17	98.9
9	GameTheory	98.9
10	bolo up	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.