Got approached for lateral - weighing my options
Hi guys, I'm in a bit of a conundrum here, and I'd like to get your thoughts on the way forward.
Regarding my current situation, I am one year out of my semi-target MFin, and some 10 months into my job at a small full-service investment bank in a major European finance center. The sector of my team is very specialized and not many people go for it, which suits me just fine. A few days ago an MD from one of our most ferocious competitors approached me on LinkedIn and basically offered me a job in his team. I have now two options, to take the offer or to leave it on the table, and I'd like to lay out some more details to get you up to speed.
Option 1: Take the offer and lateral
The competitor we are speaking of is a T1/2 boutique (think RTH/HL/PS) that has stepped into my sector only recently, but are making large waves. Moreover, they beat my team for two mandates already this year and are threatening to eat even more of our lunch. The MD that wrote me is their sector head and I have met him when we were trying to sneak back into the lost mandate from the buy-side. He's very stern and cold, says the street, and the culture is notoriously sweaty. Upside would obviously be the better brand, more dynamic work, and potentially better compensation, while downsides would be the reputational damage from changing jobs, the much more brutal work culture, the prospect of going back to An1, and the uncertainty of "getting in a made bed" - I would definitely not like to be run over by a bunch of hardos by not hitting the ground running.
Option 2. Stay where I am
My company is a bank, but competes with unregulated MM boutiques. My team did pitch multiple times against T1 players like Rothschild, and I'd put my sector team into solid T2 territory globally for MM deals. Right now I have a lot of freedom to operate, the pipeline couldn't be fuller and my boss and I enjoy a good relationship. Of course, it's IB, so it sucks, but at least it sucks less than compared to, say, Lincoln. The thing is that we recently lost our best analyst and they want to hire a new associate, severing the link I have with my boss and making my life much less self-determined. Also I don't think I'm learning so much right now, not in terms of deal experience, but actual IB craft, since we don't have real fixed processes. All in all, while my boss is very good at his job, there's a defined key-man risk by tying my fate to him, since the bank's brand is too weak. Also, I am a bit underpaid and bonuses might not be that high this year.
So that's where I am at right now. I have a habit of overestimating myself and if I'm being honest, I am very much not suited for IB in terms of personality (extremely low attention to detail and conscientiousness, strong need for external motivation). If I jump shit, I might land among the sharks and then my career is as good as over, but if I stay, I might get fired very soon or the team will fizzle out. Interested to hear your thoughts.
Considering what you laid out I'd take the better brand bank. You aren't learning at your job, not paid well, your bank is already losing out to the better brand new enterant. Go to the better branded place, and if wlb and sucks at least you have the better brand to exit into something that has better wlb overall like investor relations or corp dev at companies in your coverage sector.
Bump
This is a well thought and well-written post.
Generally -
Let's take a look at the downsides - "the reputational damage from changing jobs, the much more brutal work culture, the prospect of going back to An1, and the uncertainty of getting in a made bed"
1. There is no reputational damage. You've been there for almost a year already and the MD reached out to you directly. In a near-COVID world this is more than ifne
2. Brutal work culture comes with higher prestige usually. You're in the start of your career - take the pain - don't get too comfortable
3. Going back to AN1 - the biggest issue I have. I would see if you can negotiate as a 0.5 at least because you would be presumably much better than an actual AN1 joining from college
4. You said yourself your bank is looking to hire an Associate, which would sever the link btwn you and your boss - so there's change afoot anyways. What if the Associate is an unexperienced asshole?
Worst thing to do here is have regrets looking back at whatever decision you make 1-5 years from now - in my view you have a higher likelihood of having regrets by forging ahead in the comfortable route. The comfortable route should only be taken a) because you've hit a cap in your learning +++ years in your career and/or b) there needs to be a career sacrifice to compensate for personal life balance
This is advice I would give to a neutral person who is undecided about their career to maximize their optionality
Given your self-declared strengths and weaknesses - it doesn't seem like you're well suited for finance in general. If you're not suited for IB then you're likely to sink in the prospective new environment. The alternative decision here is to stay at your current location and think more deeply on what you want to do after year 2 that's a better fit - AM, corporate dev, S&T, etc. The brand equity you've developed in your year of working will give you a sufficient buffer to attribute your energy elsewhere - whether that's learning new skills or reflecting on your next step. It's tough to look forward when it feels like you're drowning and just trying to stay afloat (sleep-deprived, someone demanding your attention, not taking care of yourself, etc)
How do you know what his strengths and weaknesses are and how did you come to the conclusion he is not well suited for IB?
Man some people on this site gotta lay off that shitty weed
I did what is generally encouraged in forums, which is to read the original post. He literally labelled himself
Some people have such a condescending tone and aren’t even aware of it
Shameless bump
So I had a first phone call with the guy and I would basically go into a single pool for a large sector team, with a staffer and all that bullshit. The guy is as dry and clean-cut as it is said on the street, and he didn't seriously know anything about my team and that we compete quite highly. It does seem like they are looking for senior analysts, but I don't think I sold him enough on myself in general, so I'm not keeping my hopes up.
I think you should fight for a full year of experience unless there is a big difference in comp. Trust me, there is a bank out there that will give you credit for your experience. If you're having a good time now in your current role, I would wait a bit. Give them a counter-offer that you want credit for your experience, and give them examples of a deal that you worked on where they lost the mandate and your team won. Make it clear that's the only thing you want and that you will sign right after (if you're really sure you want the role) Many ways to play this out.
Congrats and ignore the bum that told you "you are not suited for IB" lol
Update: Nailed the intro talks to the MDs and am now invited to the superday. Any tips, tricks, hints? I got one case study in the morning, then lunch, then talking to the team members until 6pm. The position is for the HL Industrials team, if it helps. Would appreciate any input, especially for the case study.
For a normal, high achiever the choice to move is obvious.
However, you’ve painted yourself as a class I’ve under achiever.
So I would just coast at your current job, and enjoy the freedom and easiness that comes at working at a crappy bank. Yea the pay will suck, but at least you will never work late nights.
Is this VDN?
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