IBD Associates from non-banking backgrounds.
So, I've been reading a few articles about how to break in to IBD as an Associate from non-Banking backgrounds.
How common is this and what backgrounds do people traditionally come from? I would assume that Accounting / Audit would be one's best bet?
Not sure how common it is, but it can be done. It all depends on what the hiring bank is looking for and how you frame your prior experience. For instance, a bank may be looking for an Energy Associate and you happen to have experience analyzing companies in the Energy sector.
I made the transition from an Equity Analyst role to an IBD Associate in the same sector by leveraging my industry experience.
it's not only possible, it's pretty standard. most MBA associates at BBs are from non-banking backgrounds...probably the overwhelming majority. they are a pretty diverse bunch - lots of former consultants and actual engineers. many have a financial services background - S&T, big 4 transaction advisory, ratings agency, etc.
btw i'm referring to people from top MBA programs - not sure if this is true of other programs. as i mentioned this is only a BB thing. boutiques (both "elite" and otherwise) tend to hire people with pre-MBA banking experience or at least significant corporate finance experience.
Thank you for your answers!
What about people from backgrounds such as Accounting or financial analysts at F500?
Just do an MBA from a top 10. Thats pretty common, but i heard from a recent Stern graduate that people in his class are starting to reject IBD associate offers due to the poorer pay and same or longer hours. It could be a small amount but just thought it would be a fun fact to throw out there.
If you go the traditional MBA route you have a good shot of getting an associate gig after. If not the MBA, it would be up to your network, luck, and very likely joining a local boutique. If you are coming from Big 4 accounting or F500 financial analyst, I would think it would be fairly difficult to join directly at the associate level. It's probably more likely you'll join as an analyst unless you have maybe 5+ years of relevant industry experience (guess).
I feel like a lot of associates I met did consulting first; usually not MBB, but Accenture/Deloitte/etc, and then opted to switch into finance for the longer-term compensation.
Yeah the only way a IBD associate has prior banking experience is if he's a direct promote from analyst. No other pre-banking MBA candidate is ever going back to banking. Most analysts I know would rather work as a plumber than gp back to banking.
It's possible, but less likely without an MBA. Lots, maybe most, associates at IBs are from industries other than banking. Generally they go back to business school to find opportunities outside of what they were doing and many end up in IB. So in some ways, it's pretty standard.
Now, minus the MBA, it's still possible, but less likely, especially at the BB level. Generally you are going to either have been in a related industry, as mentioned by DoubleBottom, or have some sort of relevant finance background.
I will say, that as I've looked around recently at job postings, it's not too often that you run across associate positions that don't require MBAs or prior IB experience. It's going to be a matter of timing and luck. Banks will typically either promote an analyst from within or pick people up as they graduate from business school. Where you might luck out is when someone just randomly leaves and the bank needs to fill the spot on short notice. Also, the smaller the bank, the less likely they will be ultra strict about needed prior IB experience or an MBA.
So look around at smaller firms in smaller cities...or just smaller firms in general. They are typically much more open to hiring outside of the 'finance box' and will be far more willing to grab folks that have a little more abnormal if the bank feels your personality would be a good fit.
Remember, the associate's job is to manage the analysts and check their work. That skill set generally comes from being in the industry before...so you know what you are doing. I guess the MBAs get thrown in the mix because their 2 years in school presumably taught them the leadership skills they need to manage the analysts, even if they don't know what they are doing when they first show up. Best of luck.
Regards
Thank you :).
So, getting an MBA is crucial but coming from an Accounting or F500 background isn't looked down upon?
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