Intern in Markets or Consulting for future IB recruiting?

Based on the most helpful WSO content, here's how your options stack up for maximizing your chances of IB summer recruitment the second time around:

1. Markets Internship (SocGen/Nomura/BNP/RBC in Research or DCM):

   • Pros:
     • It's front-office finance at a bank, which aligns more closely with the IB recruiting process.
     • Research or DCM experience can demonstrate transferable skills like financial modeling, valuation, and understanding of capital markets, which are relevant for IB roles.
     • Being in a bank environment gives you proximity to IB professionals, which can help with networking and internal referrals.
   • Cons:
     • Markets roles (especially DCM) are not as directly aligned with IB as M&A or coverage roles, so you may need to work harder to position your experience during recruiting.
     • S&T or research might not provide the deal experience that IB recruiters typically value.

2. Consulting Internship (OW/FTI/LEK/OC&C):

   • Pros:
     • Consulting firms like these are well-regarded and can provide strong analytical and problem-solving skills, which are valued in IB.
     • If the firm is a leader in the sector you want to specialize in, it could help you build expertise and credibility in that niche, which might be advantageous for sector-specific IB roles.
     • Consulting experience can also be a strong signal for MBB recruiting if you decide to pivot later.
   • Cons:
     • Consulting is not as directly aligned with IB recruiting as a banking role, so you may face more challenges in convincing recruiters of your fit for IB.
     • You might need to supplement your consulting experience with finance-related extracurriculars, certifications (e.g., CFA Level 1), or networking to demonstrate your commitment to IB.

Recommendation:

If your primary goal is to maximize your chances of IB recruitment, Option 1 (Markets) is likely the better choice. Being in a bank, even in a non-IB division like DCM or research, provides a more direct pathway to IB through internal networking and transferable skills. However, if the consulting firm is a clear leader in your desired sector and you are confident in your ability to network aggressively for IB roles, Option 2 (Consulting) could also work, especially if you want to keep MBB as a potential backup.

To strengthen your IB candidacy regardless of the choice: - Network extensively with IB professionals during your internship.
- Highlight transferable skills (e.g., financial analysis, client interaction, problem-solving).
- Consider taking finance-related courses or certifications to demonstrate your commitment to IB.

Good luck with your decision!

Sources: https://www.wallstreetoasis.com/forum/investment-banking/ib-vs-consulting?customgpt=1, Medical School --> IBanking, Need advice on my internships options for this summer, Q&A: I Work at Strategy&. Consulting, https://www.wallstreetoasis.com/forum/investment-banking/m7-ib-associate-full-time-recruiting?customgpt=1