IBD: M&A vs. Capital Markets Post-MBA
Hi all,
I'm about to start an MBA (M7 - Finance Oriented School) and considering applying for an associate internship in banking next summer but have some questions.
Looking at the different parts of banking I think I am more interested in capital markets (particularly DCM) than M&A: the type of work seems more interesting to me overall, and i'm really not bothered that it isn't seen as being as 'prestigious' etc. As background, if it's relevant, i worked in an investment advisory capacity to endowments, sovereign wealth funds and family offices across the US, Europe and ME for 4 years.
I've noticed that most of the BBs offer a program in which you focus on an industry and would presumably be doing M&A and also capital markets? It seems that very few, if any, offer an associate program that focuses on capital markets, with this being an option typically for analysts.
Is it realistic/possible to focus just on capital markets over time or will you always have to do M&A as well? I'm thinking that over time I would rather transition to focus just on DCM, but I'm not sure if this is a realistic objective. I'm attracted by the work and also the apparent better lifestyle than M&A.
For boutiques such as Evercore you would focus on an industry but just be doing M&A it seems. Is this correct?
Thanks in advance.
I’m still working but I looked into post MBA Capital Markets programs.
It looks like Morgan Stanley is the only bank that has a formal Capital Markets program. I could be wrong. I believe places like Evercore focus on M&A. If you network I’m sure you’d be able to land a DCM role at any of the BB banks from a MBA business schools">M7 program.
You could also start in IB and move over to Capital Markets after you gain some IB experience. It’s harder to go from Capital Markets to IB.
In my experience, most Capital Markets groups don't like to hire MBAs. Everyone associate I've met is an A to A promote.
Just curious, why is cap markets more interesting to you? What are your career goals?
Thanks everyone.
Yes it appears that the CM groups seem to prefer A-to-A promotions, and most banks want to hire MBA students into M&A roles instead.
CM, particularly DCM, appeared more interesting to me as I'm quite interested in the structuring, terms and pricing of debt. This actually looks more interesting to me than typical M&A, but it's all preferences really. When you then throw in the better hours (versus M&A) on top that gives it even better long-term appeal to me as a career.
Based on what i've read here and elsewhere though it doesn't seem quite so easy to transition into a DCM role versus entering into an M&A role.
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