Finance Jobs for Averagely Smart People?
Sophomore studying econ at a top semi-target not 100% sure of what I want to do. I've been recruiting for IB, but not sure what I want to do long-term. Feeling a bit lost seeing all the biz school finance hardos at my school talking about restructuring, etc.
I'm not the most knowledgeable about finance (a bit of investment club experience + financial accounting and corporate finance next semester), nor am I particularly interested in PE/HF/etc.
What kind of career would you suggest for someone who's:
- Decently smart, but def not at the top of their class (3.8). I do really enjoy learning, but I'm not the greatest test-taker and sometimes I struggle with harder concepts.
- Fairly well-spoken and a good writer. Always have gotten excellent grades in humanities classes and I've been told in coffee chats that I speak well.
- Reads the news every day and generally interested in what's going on in the world
- Likes working with people, finicking around with models, and problem-solving.
- Wants to eventually specialize in one industry and know all the in's-and-out's
Likes things outside of finance: politics, philosophy, lifting, music, culture, etc.
Please nobody tell me to go into consulting :(
Wishing you the best in wealth management!
nahhhhhhh
Great question.
Based on what you said – I would recommend IB lol. But seriously though, IB is a very broad industry. You sound like a lot like I did and over time I realized there is a lot of niche areas and groups across banks that are interesting and offer better WLB than the traditional sweaty M&A/coverage groups. Do some research and learn what the street has to offer. No one is saying you have to do RX at HL or TMT at GS, there a thousand other groups.
That's what I've been thinking too. I'm not a finance wiz, but I think I have the aptitudes to learn and generally have the skills that become useful later on. I'd be interested in learning more about some nicher coverage groups within IB. Am I right to be looking into things like A&D, materials, commodities? What would be some good areas to look into? Thanks!
Capital markets is an area I personally think is interesting (hence my username) which gets foreshadowed by traditional IB. Just like you, I also did not care at all about PE/HF exits and ideally wanted something that was FO and paid me a chill salary and I can exit to other areas later on.
I do not know much about commodities coverage or if that's even a thing, but if you mean commodities trading, then I looked into that in college as well but just know it's very difficult to land a seat and you will most likely need to relocate to Houston which is something to think about (I was not interested in making that move)
There's AM and the various groups within that as well, etc.
Credit
agreed or wealth
What has your experience in corporate banking been like? I’ve heard progression is good in the beginning, but banks will bring in a lot of EDs/MDs from IB looking to chill rather than promoting internally? I’ve seen a lot of alumni from my school lateral into IB around associate level, but where else do people typically exit?
Just from what I've seen at least — but at the big lending banks like JPM/BofA/Citi, the MD thing is not something I seen or heard of. Generally a huge bulk of the moving around between CIB is at junior level where entry level CB will grind to get to DCM/LevFin and entry level IB will switch to CB since it's extremely easy internally if they realize they hated IB. IB + CB MDs work closely together and for the most part have worked through the ranks within their specific industry group. I've seen infinitely more burnt out VPs/Directors move externally to corporate whether it be BizOps or Corp Dev.
It’s been overall good, has treated me well. Except I’ve had a bit of mixed feelings on it. At the entry level it’s great because it pays very well given the hours but once you get the reps in you realize you could be doing more. It’s a very boring job, writing memos on RCFs and term loans. Same deals over and over. That’s why you see people pivot to IB at the senior analyst or associate level. It feels a bit like purgatory. You don’t have the flashiest highest paying job but you aren’t on the bottom either.
Personally, I’m looking to pivot out to private credit. It’s the same job but the pay is much better.
IB trust me you will be fine. I always grew up thinking I was the dumbest kid ever and struggled but IB was not bad at all. You are essentially just outputting and making things, there is not a lot of deep analysis you are doing yourself as an analyst. Trust me you will be fine.
Hopefully. Taking my first finance classes this semester and I’m getting the concepts, but lowk not getting stellar grades on exams…
investment banking as an analyst is far less intellectually stimulating then you think, theres a reason the nerdier academic schools (MIT/Pton/Stanford) send less kids into banking
FP&A or IR
How does one get into IR?
Most people in IR I've seen at very big brand names (FAANG, etc.) are exits from ER. If you are a stellar performer in FP&A after a few years it's possible to internally transfer as well. Also seen very few ex-ECM people.
I do know some companies, big ones included, that have IR as rotations in their FLDPs although I have honestly never heard of someone "graduating" their FLDP and getting placed permanently into that team. I'd say it's possible out of UG but I wouldn't bank on it.
Real Estate
Credit, wealth management, DCM IB, PCA Advisory,
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