IB or ABF

Based on the most helpful WSO content, here's a breakdown of your options:

1. Staying in IB and Upping Your Platform

• Pros:
  • Moving to a stronger platform like Lazard, Rothschild, or Guggenheim enhances your resume and network.
  • These firms are well-regarded for their deal flow, prestige, and exit opportunities.
  • Compensation is likely to remain stable or even improve over time, especially with bonuses.
  • If you’re aiming for long-term IB or considering a lateral move to PE/VC later, this keeps you on a well-trodden path.
• Cons:
  • Lifestyle and hours will likely remain demanding.
  • Limited upside compared to the potential equity growth in a fund like ABF.

2. Transitioning to the ABF Fund

• Pros:
  • Joining a new fund with strong founders and $2 billion AUM offers significant upside if the fund performs well and scales.
  • You’ll gain direct investment experience, which can be a stepping stone to other buy-side roles or even starting your own fund in the future.
  • Potential for equity participation or carried interest, which could far outweigh IB comp in the long run.
  • Likely a better work-life balance compared to IB.
• Cons:
  • Lower initial cash compensation, which could be a challenge depending on your financial situation.
  • Risk associated with the fund’s performance and future fundraising success.
  • Transitioning to a relatively new fund means less stability compared to an established IB platform.

Key Considerations:

• Risk Appetite: If you’re comfortable with short-term financial sacrifices for long-term potential gains, the ABF fund could be a great opportunity.
• Career Goals: If you see yourself on the buy-side or in a more entrepreneurial role, the ABF fund aligns better. If you prefer the structured growth and prestige of IB, the up-tier move makes more sense.
• Lifestyle: If work-life balance is a priority, the ABF fund might offer a better quality of life.

Recommendation:

If you’re confident in the ABF fund’s founders and their ability to scale the fund, and you’re willing to take on some risk for potential upside, the ABF fund could be a transformative career move. However, if stability, comp, and prestige are your priorities, moving to a top-tier IB platform is the safer bet.

Ultimately, it comes down to your risk tolerance and long-term career aspirations. Both options are strong, so you’re in a great position either way!

Sources: Not sure if Investment Banking is for me anymore, Help! Full Offer decision between Credit Suisse IB and Allianz Global Investors Graduate Programme, Best Route to a fundamentally driven HF in Londob: IB vs AM?, Which EBs would you choose over Rothschild London?, Moving from Asset Management into IB / PE