Happiness in IB

Current 2nd semester senior watching the glory days tick to an end. I’m returning full time to a BB where my summer internship was pretty cushy compared to the real deal.

I’m excited about the job and being in NYC but pretty bummed out by the prospect of losing all my freedom. On here and in the real world it sounds like the analyst years are just so brutal.

I’m wondering if people in their early 20s doing banking are able to find some measure of happiness, and how they do it. Are you able to go out/date/pursue hobbies at all? How do you manage friendships/relationships with people on different schedules? I know this has been covered to death on different threads but if anyone wants to share I’d love to hear some perspectives.

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Whatever you think, it will be worse. Doesn’t mean not worth doing TEMPORARILY. Do your 2 or 3 years and escape. And no, by escape I don’t mean PE. Think long and hard about your long term goals in the context of today’s world.

PE and most buyside roles are worse but like every starry eyed prospect they will:

  1. Accuse me of being wrong
  2. Go into PE after their 2 grueling years of banking
  3. Realize they hate themselves
  4. Come onto this forum to cry
  5. Crashout after 2 grueling years to a corporate role
  6. Realize that they just wasted the last two years
  7. Warn other prospects on WSO and receive monkey shit in return
  8. Cycle repeats
 

So what did you do? And how would you recommend using those 2 banking years to set up your future?

 

Almost too many facts in a single post...Sorry to anyone who actually likes banking but the people who stay in it (e.g., not analysts part of the two-year in and out rotation) fall into one of two categories, in my modest judgment:

  1. Miserables who are averse to professional risk and like the stability of the paycheck or need the money for whatever reason (children, student debt, other family or personal obligations). Some of these people are actually interested in the advisory nature of the work but not all; they tend to color most of our experiences as juniors in IB and make it an awful place to stay in, long-term. They exist at every bank in every geography; would say this is solid 80-85% of bankers I ran into above the analyst level
  2. People who genuinely love the sales aspect of bringing in business and/or find the advisory role interesting. This category of guys and gals love doing deals and they tend to be the ones who fly very high at their firms (think Waldron at GS). Would cap this group at 10-15% maximum of all people in IB above the analyst level. If this sounds like you there is always going to be a need for these people as most of the real talent tends to leave for buyside across all firms. 

Based on what I have been reading and seeing, it looks to me like juniors in IB will almost definitely be made obsolete by tech advances in AI within the next ~15 years. How you get to be a senior person to bring in the bacon while not going through the crucible of the grind remains to be seen...my guess is the banks drastically cut down class sizes to maintain some human element but don't eliminate the roles completely.

 

Associate 1 in IB - Cov

Whatever you think, it will be worse. Doesn’t mean not worth doing TEMPORARILY. Do your 2 or 3 years and escape. And no, by escape I don’t mean PE. Think long and hard about your long term goals in the context of today’s world.

PE and most buyside roles are worse but like every starry eyed prospect they will:

  1. Accuse me of being wrong
  2. Go into PE after their 2 grueling years of banking
  3. Realize they hate themselves
  4. Come onto this forum to cry
  5. Crashout after 2 grueling years to a corporate role
  6. Realize that they just wasted the last two years
  7. Warn other prospects on WSO and receive monkey shit in return
  8. Cycle repeats
 

Be prepared for your life to change, hard. But don't worry, you will forget freedom and come to love your captors like all prisoners do. 

Best thing to realize is that you are no longer in charge of your time. Let that soak in. You will have time to catchup w friends and do social things, but you will not dictate when. So, get creative and seize every moment of free time you get.

The people who stay in this job have a deep desire to make money. So deep they will let it will dominate their life. If that is not you do not worry. You will roll out in time to a greener pasture and find your calling.

 

I recognize IB is a very valuable experience for some, but I will say that I joined a top PE analyst program (not BX) straight out of school and I could not be happier I skipped IB. If you're planning to pursue PE, I always recommend skipping IB (if there's some fund out there you know requires IB and it's you 'dream' obviously this doesn't apply to you).

I ended up staying where I am but I did interview with a few funds during my A1 and I didn't feel like IB peers had any leg up what so ever. The work you do in PE is also just more interesting, IMHO. Also I think people have the wrong perception of the sourcing component. It's not like exactly how people paint it out to be. Sure, I'm sure there are some "glorified cold calling" shops out there but that doesn't seem to be standard across top UMM/MFs.

I'm wrapping up my 5th year in PE this summer and leaving finance for good, but I've learned a lot and have a great prospects.

 

Assuming ur probably trying to get a sense of exit opps here...I've looked into all the typical stuff. Start ups, corporate development, corporate strategy. Operational roles at starts ups have been most compelling so far in terms of responsibilities and comp. For those curious, VC is also an option but decided to ditch finance.

 

It depends on how much sleep you need to function. 

In any case, you can do a few things to maximize your happiness:

  • Sleep as much as possible (no Netflix for 1h when you get home)
  • Exercise, stretch. Cardio + weights. Get a gym close to your office
  • Make it a point to need friends at least 2x per week
  • Meditate 10-20mn a day
  • Book holidays, warn your teams and get them to buy on, and enforce it as much as possible
  • Play your political cards right - that doesn’t mean being a yes man
  • Fake your workload as much as possible without getting your staffer to dislike you, do few things very well to get good reviews
  • Have a positive attitude. “I have to go to work” -> “I get to…”
  • Generally, focus your time on high happiness ROI activities (sports, hobbies, seeing friends) vs dumb scrolling and Netflix.
  • Don’t get wasted every weekend. Sure thing to kill your health. Get 2-3 drinks per night no more
 

Same feeling I have with my girlfriend actually, met her the week before starting a top banking group and surprised she’s stuck around with me given my work schedule. She’s very supportive, says she understands my hours but I know it’s still not fair to her. Banking causes a lot of problems in our relationship but I couldn’t have made it through the past two years without her.

 

I recently decided to leave a top tier BB (think GS, MS, JP) in a solid team (think TMT, IND, HC) because I fundamentally was not happy.

The job did not allow for any semblance of a life outside of the office - what use is making all that money if you have no time or people to spend it on?

My physical health deteriorated (balding, heart palpitations) despite my trying to work out 3 times a week and walking a lot daily. Doctors said it’s the stress and unpredictable sleep schedule.

Although earlier in my career I was truly passionate about understanding companies and valuations and M&A processes the continual bullshit of dealing with obnoxious seniors, incompetent juniors and assholic PE clients. Corporate clients were always nice though.

Although I was on MD track I realised I did not actually want to be an MD - they all had no friends (just clients), no hobbies, non-existent relationships with their families and were frankly bitter people who lived for their next bonus - really not inspiring in the slightest.

I’ll caveat that all of the above may have been because of the bank / group I was in - and I had considered moving to a lower tier bank, but frankly being in my current shop has beaten all joy out of the industry for me.

Ultimately all jobs are bullshit and full of compromises that have to be made - it just comes down to what flavour of bullshit you find most palatable.

 

Crazy to read that re health. I'm at a MBB but got grinded a lot recently by PE clients and also started to have heart palpitations. I thought I'm about to drop and thats it but then realize they correlate extremely with my anxiety. I.e., project cools down, all gone, weekend all gone, seniors pounding the deck with stickers: extreme uneasiness/palpiations started. 

It made me feel like such a dark place. Like something I could not escape even though I knew I wasn't in danger. Made me sick to my stomach.

 

Don’t worry dog. I was extremely unhappy during my analyst years in IB then was fortunately able to exit to a great seat at a NYC megafund. Now I’m even more unhappy!

This quote from Fury sticks with me when undergrads ask about my experience in IB / PE:

Bible: “Wait till you see it”
Warmachine: “What?”
Bible: “What a man can do to another man”

 

It’s going to be pretty bad. A lot of seniors are losers who just want their teams working around the clock on nonsense. To VPs and others who buy into this: MS me but then spend some time reflecting on exactly what you have done today, last week, last year, last three years…

The people drive the hours, it doesn’t have to be as bad as it is. You will have zero downtime, this means being available 24/7. Many in the industry fundamentally disagree that it would be ok to be “unavailable” (read: at the gym still responding to emails but not turning comments) for an hour a day.

Looking up to MD level, others have said it above but it’s pretty sad. Most have to beg clients for mandates and cater to their every whim. I don’t think most MDs genuinely spend time with their families. 

If you are extremely type A and I mean extremely, this industry can work out for you and maybe even be enjoyable. I’m not talking about type A where you want to get good grades and what not, I’m talking about neurotic where you can immerse yourself in the most meaningless possible activities for 16-18 hours a day (oftentimes more) in order to potentially get a pat on the back.

 

This is very accurate. The Type A part rings very true - there’s a difference between the ‘normal’ Type A person where you think to yourself “wow that’s a motivated, intelligent person who I’m inspired by” and the types that stick it out in banking where you say “wow they’re just weird, I almost feel bad for them.”

The latter are indeed the types that are beyond OCD, often neurotic, willing to sacrifice absolutely everything for the job ab absurdum (I have VP colleagues who have cut their honeymoons short for deals) and honestly just strike me as being empty / damaged in some way.

Clearly it’s all subjective but that’s what I found at least. Again I’d caveat by saying I was in an ultra-sweaty group at an ultra-sweaty firm.

 

I do feel bad for a fair amount of these people but then they pull their typical nonsense that makes life more painful. I try to recognize that they are in a bad place (whether they know it or not) where they do not have inner peace.

 

These are some brutal comments, but true. Honest answer is being happy during analyst IB is just unlikely. To start, I would reframe your thinking that it is a temporary period of your life that will suck, but things will get better, rather than you are trying to be happy and find fulfillment in your IB job.

Once you mentally accept that, it becomes a war of attrition and outlasting the clock. To outlast the clock, I would recommend setting goals. More specifically, try to have an activity or something you look forward to every weekend and an activity you look forward to every month or month and a half. 

Also, as others have mentioned, check your substance use. It’s temping to get blackout on a weekend due to all the stress, but my experience was the anxiety the day after drinking was not worth it and made me extremely miserable. I basically only drank on Friday’s toward the end of my stint and it really helped. Avoiding being overly dependent on stimulants also is key for avoiding heart palpitations and the hospital. Finally, as others have mentioned, you have to get sleep and know how to push back or fake work load to get some sleep if things get too messed up.


Good luck!

 

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