Huge Career Hit To Go From Coverage > ECM IB? Thoughts / Perspectives Appreciated
So I know 99% of the usual posts like this are people wanting to go from ECM to coverage, but I want to do the direct opposite.
Currently a 2nd year at a BB that is in industrials M&A and it is mega sweaty. I would say I do 85-100 hours consistently, and working every single weekend. Meanwhile I talked to people on my banks ECM team that all said they do 55-65 hours consistently. No weekend work at all. Crazy thing is my first year I made $170k and the ECM analysts all told me they made around $160k.
They work almost half my hours, and are paid only around $10k less. I am thinking about joining this team ASAP and ditching M&A all together, as for me it is not worth it and I am extremely burnt out.However, I want to keep PE potentially open, but I know that will be tough coming from ECM.
I am not planning to target MF or even MM PE, but is UMM or less prestigious funds still possible from ECM? Still having completed ~ $3bn of sellside during my first year?
Thoughts appreciated. Thanks guys.
I recruited for PE from DCM and had no issues with the MM/LMM firms. Joining a shop after I wrap up my analyst program this summer
You are overthinking it, as long as you have a good story and know your shit during interviews, you can end up in any buyside seat.
There’s no absolute, required path to get to PE. (Despite the WSO circle jerk about the golden pipeline of m&a > pe > m7 b school > elite HF)
Funny enough in a very similar boat and would love insight here
Why not recruit for a fund now so that you dont have the risk it ecm dilutes your profile?
The huge career hit would be burning out and deciding that you never want to work in finance again, therefore turning your back on a career that can be sustainable if you're in the right team/group. Nothing wrong with ECM as long as you're committed to doing that for the rest of your finance career, as in there are not too many exits from it, however, why not try another bank or coverage group?
This is exactly me. I think about quitting banking all together every day because of the brutal hours. Also considering just “exiting” to ECM / DCM. I don’t care about PE/HF, and so I’m thinking banking for life. Might as well do it in one of the Capital Market groups
Depends what you want. If you want PE, I’d stay put.
If you want to be a career banker, it depends. The pay gap between coverage and product widens as you get more senior. But ecm does have better hours as you mentioned. Your call.
The caveat to a financing product group like ECM / DCM is the volatility. When the financing window is shut for a prolonged period, its slim pickings and trimming these groups is easy cost cutting
Other limitation is exit options, the skillset is not really a good fit for investment roles. Like you could be sharp and put together but coverage / M&A group skillsets slot in easier. Corporate IR and financing roles at funds are a fit. If you're not vanilla ECM and have exposure to structured products, HFs also possible.
Otherwise pretty sweet gig.
Can you really compare the volatility between ECM and DCM? Companies issue debt regardless of the macro, albeit at a reduced amount. If you’re in FIG DCM you’re busy regardless
Feb 2024 was a record month for issuance despite rates. As for ECM…
Does anyone know whether MBB gives better exit options for PE than ECM?
Not a wise move for PE.
Not a wise move for a sellside career either (ECM gets cut on every downturn with the exception of the equity syndicate bankers).
Better to either exit to PE asap from your sector group or move to something more tennable long term on the hours.
Good move if you’re not interested in traditional exits. I worked in ECM and knew many who did their two years in coverage and then transferred over for the better lifestyle. They have no regrets. It is true though that ECM is likely the first to be laid off when the economy goes down. ECM has been slow of recent (last few years). So if you do get laid off, it would be good to have a plan
Converts actually has good exits btw
What exits do converts have? Genuinely curious
Haha dude are you me? I’m in the same spot. In coverage and I hate it. I don’t really care about the industry I’m in, neither do I care about the group or the people. Also two years in and looking for something with better hours (doesn’t need to be 40 hrs/week). ECM / DCM seems like the sweet spot, sure pay discount at the higher levels but I’d happily take that trade (both will still be in the top 1%). Also heard those groups generally have better weekend hours since markets are closed. Let me know how things pan out / whether you make the move
Bump
How does this turn out for ECM VPs - what can they exit to? PE already not an option
If you’re smart, you always have a chance to break into PE. But PE is just as sweaty as your current seat, so not sure what you’re hoping to achieve by switching to ECM and then going right back into the crucible of PE.
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