Is corporate banking worth it?

Hello monkeys, I’m currently an analyst at a small RE credit fund in London but might have the opportunity to move into a MM bank (Santander/BNP/etc.), also in London.

Is corporate banking worth it? Does it have strong exit opps into decent credit funds?
I assume it obviously depends on the actual work, whether I’m stuck doing RCFs or doing some loan bridging, large syndicates, levered loans, etc.

Would appreciate any insight!

12 Comments
 

Corporate banking can be worth it, but its value largely depends on your career goals and the specific type of work you'll be doing. Based on the most helpful WSO content, here are some key insights:

  1. Exit Opportunities:

    • Corporate banking offers solid exit opportunities, particularly into debt-related roles. Common exits include private credit funds, CLOs, and other credit-focused funds.
    • Transitioning to investment banking, capital markets, or corporate finance is also possible, especially if you build strong relationships with industry coverage, capital markets, and syndication teams.
    • At higher levels (VP and above), exits often lead to corporate treasury roles, CFO positions, or other senior finance roles.
  2. Work Scope Matters:

    • The type of deals you work on (e.g., leveraged loans, large syndicates, or more complex structures) can significantly impact your exit options. Roles involving more sophisticated credit products and deal structuring are more likely to open doors to top-tier credit funds.
    • Conversely, if you're primarily handling simpler products like RCFs, the exit opportunities may be more limited.
  3. Comparison to Other Roles:

    • While corporate banking may not offer the same prestige or compensation as investment banking, it often provides better work-life balance.
    • Compensation at the MD level in corporate banking can still be lucrative, and many professionals choose to stay in the field rather than exit.

Ultimately, whether corporate banking is "worth it" depends on your long-term goals. If you're aiming for a career in credit funds or other debt-focused roles, corporate banking at a reputable MM bank could be a strong stepping stone, especially if you focus on complex and high-profile deals.

Sources: 2017 Commercial/Corporate Banking Bonuses, BB Corporate Banking Exit Opps?, An Overview of Corporate Banking, Leveraged Finance Exit Opportunities, 2017 Commercial/Corporate Banking Bonuses

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Thanks for the insight. May I ask if you were at a BB vs MM, and whether you covered a specific sector?

 
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I think it’s important to distinguish between the different functions typically grouped under “corporate banking,” as the term is very broad.- Corporate banking relationship management – This appears to be the area you’re referring to. The role primarily involves covering clients for standard corporate banking products (payments, cash management, and certain lending products), monitoring and underwriting RCFs, and occasionally engaging with the bank’s credit function on internal ratings and limits. In many cases, this is not a particularly technical role. Where the portfolio consists largely of blue-chip companies – as is often the case for foreign banks operating in London – credit and underwriting work can be limited due to the low risk profile of the clients and the presence of external ratings. If this is the role, and the objective is to lateral into IB or private credit without sacrificing seniority, the path is challenging. The skill set developed in such positions is typically not aligned with what those roles require.- Lending / underwriting-focused teams – By contrast, business lines such as fund finance, infrastructure finance, or shipping finance operate as true underwriting and revenue-generating teams. These groups analyse projects and companies in depth and tend to offer much stronger technical exposure. The resulting skill set is generally more transferable within the relevant industry vertical, making a move to a comparable role on the IB or private credit side materially more feasible.

 

This is spot on. Am currently on the coverage RM side and while hours and comp are great, am quickly falling behind my peers when it comes to technicals and transferable skills. If I had to do it all over again I’d 100% avoid CB from the start or leave at the 12 mo mark. 

Sincerely,

Someone who actually wants to work

 

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