IBD Career vs. PE/HF Career
Guys quick question-
After talking to some friends who are at various PE/HF's now, there seems to be a sentiment that at long/short funds, and most PE's - the work environment is much slower paced. Is that correct?
The thing I enjoy about IBD is the constant interaction with various groups of people. In a sense, the multitasking creates dynamic environment, and as you rise to the senior levels, you becomes the deal-maker, which involves a lot networking etc. Also, a high-level MD in a sense runs his own little company - the Rolodex of clients is his, and he can take it to any platform to produce more or less the same results.
For someone who enjoys a fast-paced environment, meeting and learning about new people, is it conceivable that IBD is a better long-term career than PE/HF?
Thanks
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The reason why many people leave IBD is because even though the environment here is chaotic, it's not very efficient and is just too fee-driven. You utilize your acumen to the fullest to get the transaction fee. That's it, that's the end goal. And no matter how fast-paced it is, most actual transactions / deals take a while to complete. So you're in a constant chase trying to get new business, because until the last moment you don't know if your deal will close.
In PE, it's less chaotic but no less task-oriented. Not to mention that your acumen is used to generate an economic return. It's a quality vs. quantity debate.
Just depends on what you like. If you like banking, stick with it. Easy to follow what everyone else is doing but if you enjoy the people/work you are doing then it is probably a better career for YOU.
Genghis Khan (MD that occasionally posts here) had a great post on this a few weeks back and why he stuck with banking.
cool thx, i'll go look for that
http://www.wallstreetoasis.com/forums/why-would-anyone-want-to-do-banki…
Here you go.
IBD is not all fee-driven though. Designing derivatives for the clients to hedge the market risks for ibd transactions is a high-margin business. So is coming up with sophisticated financing options for the acquiring clients.
one banker told me it's kinda like hunting. the best part about the hunt is taking the shot/kill. Cleaning the animal, taking the guts out, or "dressing it up" is boring...
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prop traders at high-frequency shops can clear millions by their mid-to-late twenties. a PE and IB associate won't be anywhere close to that.
With that said, there is no amount of money you can pay me that would make me willingly sit in front of a computer staring at numbers going up and down for the duration of my life.
My previous post was meant to be sarcastic and to be funny. In any event, I deleted it. Yes, you have to like what you do. As I said earlier, traditional pe is perhaps too slow paced for me. But I like distressed funds though. My long term goal is to work in distressed funds in, say, mezz securities and/or structured notes.
Keep in mind your future, though, as well. While you may find the fast-pace and crazy hours fulfilling now, will you in 5 years, 10, 20? I'm assuming you may someday want a family and all that comes with it. From what it seems, PE provides a bit better of a work-life balance...
in IB, you would have work-life balance too once you move up to VP.
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