Hi guys need some advice here please
I’m currently 4th year into banking and have always been in ECM team.
Now I want to make a move to a different team as the ECM deal activity is down 99% and I don’t think it will recover anytime soon (ie job security bad). Also, I’m not extremely passionate about ECM tbh (personality mismatch) but have been in the comfort zone (good money good hours) for so long so didn’t think of moving until now.
Now I want to move to a role that still gives me 1) certain degree of WLB (as in ECM) but am hoping 2) the job / tasks will be slightly more intellectual/ analytical, 3) less sales oriented (well I know sell-side is sales…), and 4) provide me with good skills (think modelling, sector knowledge, basically something solid) 5) maybe 20-30% pay cut but not more….
Any such exits you have in mind? Am I an idiot who wants an non-existent job?
2 potential exits I have in mind and my thought process:
1) equity research: is this a possible exit from ECM? Assuming yes, I want to try this because maybe it has better hours (at least during non earnings seasons?), I can gain solid modelling / sector knowledge (right?..), and also the work itself is more analytical? Downside I can think of is pay cut, and a less natural exit vs sector / coverage banking. I put ER as top as I think it matches my personality more. I like to think and ask tons of questions, like modelling, generally I don’t see my strength to be sales so EQ better than ECM (but I do understand EQ is kinda sales too)
2) sector / coverage team: can try, but seems much longer hours than ECM (off at earliest midnight vs 8/9pm even as associate, no WLB).
What they do also isn’t very interesting to me (mostly on IPO execution and not much real analytical work / modelling). But seems a more natural move, and little pay cut likely
3) buyside: seems very unlikely given my background. Maybe some IR roles at some buy side which I have little interest. Cant think of non-IR buyside exits for a ECM banker
4) any other exits?…
I might sound like an idiot now who is picky and naive, but just want to make the right move to the right role this time. So appreciate any helps really.
Anyone who made a similar move from ECM can shed some light on this?
Second-year research associate here. I'm at a BB and I know of a few people who have come over from IB (both ECM and traditional coverage)— some were internal transfers and others external. It can be done for sure
Did they share with you on why they made that move and how they compare research vs banking now that they have worked in both? Like in terms of hours, tasks they work on etc
Did they struggle a bit to pick up the research role when they first joined? How hard was that transition?
Thanks!
Definitely possible, especially internally. ER is never going to be a 9-5, still 60-70 hour weeks at most shops, but your hours are much more predictable (i.e. earnings sucks, but you know exactly when it is). If you're off at 8-9pm right now, your hours might not get much better in ER (7am-7pm + much worse during earnings) If you like following the markets and modeling, it's an interesting place to be. The main exit from there is into IR which pays well enough for low hours.
If you're interested in buyside, corp dev etc, could always switch internally for 2 years and your exits will open up. But ER shouldn't be a hard move if that's what you truly what to do.
In terms of exits is IR the only exit from EQ? I would think it opens door for HF/LO and even back to banking again (like if I want to go back to banking after say 2 years of EQ, I could).
Personally I’m not very into IR roles / roles that are mainly about relationship management
HF/LO AM are definitely possible, although best done while still associate. If that's your goal make sure you go to a top-tier sellside in your coverage even if you're going external.
IB is always an option, but 2 years in EQ will likely put you at a VP in IBD at which point your exit ops get much smaller than as associate
Have seen people go from ECM to LO AM
That’s is quite rare based on my observations… what role at LO did they move to? How did they convince the LO they have the fundamental research / analysis skills? I would assume ECM is more high level with little / no modelling skills gained on the job
I think you have all the points right.
ECM to ER can be done, absolutely. Network within your bank and try to make the move.
Remember that ECM is a revenue center within a bank, and ER is a cost center. ECM bankers get paid more than ER analysts at a bank and have better career trajectory.
WLB - ER is worse as you noted.
Exit opps - ER is better. Plenty of people go from ER to the buyside at LOs or HFs or to corporate IR as you said. ECM you are kind of stuck. It's a seat that is most valuable at a bank, and where you can get paid a lot. But exit opps are limited.
Personally I know people who have moved from ER to ECM for all the reasons noted above - better pay with better WLB. I personally haven't seen the opposite happen, but I don't see any reason why not.
Does it make sense if I go ER for say 1-2 years, accumulate some sector and modelling skills which I can't acquire as much in my current job. Then jump back to ECM if I want (maybe by that time I don't care about gaining sector / modelling skills and have a different focus in my life ie want money, WLB, hours only which ECM is the best fit.
Does it make me a strong candidate if I'm looking to go back to ECM 2 years from now? (Ie by that time I will have 4 years of ECM exp and 2 years of EQ exp).
To recap the reason why I want to make a move now is because of poor ECM activity YTD which I don't think will cover anytime soon ie worried about job security
Hope the above makes sense
ER has way worse job security than ECM. When underwriting and trading revenues are trending low, ER is going to be the first to get cut. Not to mention structural headwinds from regulations such as MiFID.
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