Houston SA Offer: Take EVR/LAZ/Moelis or Wait for GS Process
With Houston offers going out this week, wanted to get some perspective on taking an offer from Evercore/Lazard/Moelis Houston or holding out for the later GS Houston process?
While the current offer does have the RX exposure that provides some hedge, I have heard that GS/MS would provide a better exit ops out of O&G and potentially for FT lateral as well. For context, I have been close with both teams and feel like I have a good shot at GS but obviously nothing is guaranteed.
Would appreciate any perspectives on the firms and how the analyst have done in terms of exiting O&G?
I personally would not do the GS program if it’s Houston. NY and Houston are different beasts, and GS Houston has struggled constantly with culture. Also, the hedge matters a lot more given GS only really does OFS out of Houston.
Take EVR or Moelis - both are great firms with recent traction. EVR has been a top player on both the rx and m&a side of things, especially for upstream.
Thanks! Yeah, definitely leaning that way.
Just curious if there was any detail on the GS culture issue? I've done networking calls and did the virtual insight day, but didn't pick up on anything out of place (just more buttoned up).
Lol, pretty sure someone specifically called out GS Houston in that “Most Cutthroat Groups” post
This is very much a BB vs EB question. Other than that, I would say two things: (1) EVR is the best Houston bank on that list by far in terms of dealflow, exits, culture and prestige. GS is a fantastic bank but it is not a tier-1 BB in Houston. (2) GS does have the best exits if you want to leave energy. I would say EVR's are only very slightly worse.
I think it would be crazy to turn down an offer from EVR. Even if you are committed to leaving energy, I would still take EVR on balance.
Thanks for the perspective! Do you know why GS has an edge for non-Energy exits if it doesn't have the deal flow? Is it just the GS branding?
Yup. Feel free to keep asking questions if you want to.
I’d hands down take EVR / LAZ / MOE for the experience. All are great shops. Evercore is best for M&A, Moelis best for restructuring. All have been picking up mandates through the downturn. Moelis has probably been most active in the energy rx market recently and just got $40bn Oxy deal.
Agree that GS Houston isn’t that great outside of brand.
^Good content. I'd add that LAZ, while a great bank, isn't on the same level as EVR and MOE in Houston. LAZ has interesting mandates, but they don't crush it in Houston like the other two. I'd be very conscious of the difference in size of EVR (huge) and MOE (very small). One isn't better than the other but it would be a very different experience.
You can PM me. Was in a very similar position a year ago
Feel like the big question here is why are you recruiting for Houston O&G IB if you don’t want to exit into Energy?
I’m assuming it is a combination of either being at a Texas school that feeds to Houston, growing up/having family in Houston, having family connections in O&G, or thinking that recruiting into Energy would be easier than NY.
Whatever the reason is, I would first think about about why you initially decided to recruit for Houston and what has changed (assuming COVID-19). Even before COVID-19, O&G was still facing structural issues and headwinds in terms of ESG-focused investors. It seems counter intuitive to sign a Houston SA offer to try to leave, but I’m assuming that GS HOU is your only other alternative.
If you compare your different potential outcomes, I do not see a way the marginal advantage of GS outweighs the risk of striking out in recruiting. The EBs will give you arguably better deal experience/reps along with the RX hedge. Also consider the potential for FT laterals, where the EBs are generally more open than BBs for internal mobility between SA and FT.
Ultimately the minor (if any) upside of GS, is not worth the potential risk of not having any IB role in the fall.
Waiting for GS sounds like a very big risk with little to no return.
Take the offer.
Agree with all the comments on this thread. One thing though, don't take a Houston offer if you intend on lateraling out to NY or SF. There are few if any O&G groups on the East and West coast. You also have a very niche skillset, so it's not attractive to many banks. From my understanding, EVR and MOE also don't allow Houston analysts to lateral to NY.
The culture of Houston is more about loyalty. If you tell anyone you want to recruit out or even switch offices, they take it personally. Just be aware of this.
Agree with most of that but where have you heard that lateral policy for EVR/MOE? I know there have been interns at both shops who have lateraled to NY.
You might be able to pull this off but you burn bridges for other kids in your school. Seriously, if you want NYC ft, don’t take a Houston offer. If you do two years at Evercore Houston you can lateral to any other offices. Banks are serious about the two-year commitment
EVR allows analysts to lateral to NY, both before and after starting FT. I have heard that an analyst that did it kind of had to give up a year of tenure
"Allow" is a confusing term here. Yes, if you are a top SA, the firm is not going to want to lose the talent, so they'll probably let you transfer if you force their hand (i.e different FT offer, strong reason for moving). But if you weren't the best SA and are viewed as dispensable by pretty much anyone, chances are they'll pull ur offer and just hire someone to replace you FT.
Anyone have takes on what vertical in Houston would give the best odds to generalist exit ops? Know it’s historically been OFS since it is closest to industrials, but that market seems to be dead.
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