ER Associate ---> IBD Analyst
All,
BACKGROUND
I'm currently a sell-side ER Associate, with two years of total work experience and one year in my current role. I've rounded out my resume through some extracurriculars (e.g. modeling courses, CFA, etc., etc.) as I prepare the next step in my career (after another year or two in ER). While conversating with clients and networking with Corp Dev managers, it became apparent that I should lateral to IBD to acquire deal experience. Initially, I neglected this route as I figured I could work around IBD and still land my dream job (Corp Dev at F500 or, less so, analyst at a deep value fund); however, I've grown to learn the importance of deal experience and respect my IBD acquaintances and am now eager to make the jump.
Side note: Happy to answer questions on my ER experience and why I think the transition is important.
QUESTIONS
In advance, please excuse my ignorance on these questions. The goal is to make the move next summer (Summer 2020). I work for an independent shop and did not complete a formal traning program. Therefore, its important to me that, during my time in IBD, I complete a formal training program. Do most IBs have formal training programs or are they specific to BBs/EBs? Second, should I apply for the student Analyst programs or for one-off job postings? Finally, if you have any advice to offer on making this transition and/or you have done something similar, I would greatly appreciate your insight. In particular, how did you spin your ER experience and lack of exposure to deal-making? Again, thanks in advance to all who contribute.
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bump
Why are you not looking at IBD positions now?
With two years of ER experience you should be able to transition into a AN1 or AN2 position. You've got a good story on why IB (want deal experience), so your main focus will be selling your ER experience (research, lite-modeling, industry coverage). Look for groups with a focus on your current sector so you can speak intelligently during interviews.
All MMs, BBs, and EBs will have formal training, but it is not all that important as you'll learn 95% on the actual desk. The real benefit of training is building relationships with other analysts.
I strongly suggest looking now versus aiming for a Summer 2020 start date. You know you want to make the move so just make it.
Appreciate the insight. There are two reason why I am focused on next summer: 1) personal reasons that require me to have better foresight into my schedule for the 6 months (ER allows this whereas IBD does not); and, 2) not having much luck with off-cycle applications since most require 1-2 years experience in IBD. I'll keep networking, but one set back has been a limited number of IBD connections (went to a small school for undergrad and most of my former colleagues have not moved into IBD). Therefore, the majority of my networking has been cold emails which do not tend to have great hit rates.
Off-cycle applications certainly do not require 1-2 years of IBD experience. We look for IBD first, then its a mix of big 4 valuation, consulting, and ER. It's honestly really hard to find candidates with 1-2 years of relevant IBD experience.
My recommendation is to continue to aggressively look for openings over the next several months. Prior to applying, linkedin message a couple of analysts / associates to learn more about the bank / group and also to get your name on their minds. It continuously gets harder to make the transition to IB as the years go on (why would you want to be an IBD AN1 when you are a senior associate in ER 2 years anyways) so it really is now or never.
Also, I just want to make clear that you do not NEED to make the switch to IBD to move to corporate. It will certainly help alot, but it is not a requirement by any means. If you are very thoughtful on the industry you work in - you will provide value at a corporate in that same sector.
That's super helpful. I'll definitely try to reach out to a few Analysts/Associates before applying. And just to be clear, my first role was at a rating agency therefore I currently have one year of experience in ER but two years of total work experience. That's why I figured an IBD AN1 was more appropriate.
I'll add that my interest in IBD goes beyond exit opps; I am continuously impressed by former bankers that are now our buy-side clients and most allude their abilities to prior experience in IBD. While it may be hell for a few years, I actually look forward to the challenge (at least for now) and acquiring a similar skillset in a relatively short amount of time.
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