Is Investment Banking the Right Path for Me?
I am currently in my final year of university in Chile and I have always had a keen interest in finance. After some consideration, I have set my sights on investment banking, as it offers great learning and growth opportunities. However, I have some concerns about whether it is the right choice for me.
I think I have a profile that fits IB. I studied in the best business school in Chile reaching the top 2% of my class. I believe that Im capable of getting a first-year job in a top-tier investment bank (in Chile), such as JP Morgan, BofA, or Goldman Sachs, or one of the large Chilean or Latin American investment banks. I did an internship in one of the largest asset managers in Latin America, which I know may not be viewed as highly as an investment banking internship in the US. However, I have been told by an associate at JPM that in Chile, the asset manager where I did my internship is highly valued and it shouldn’t affect me negatively when looking for.
From what I’ve read, heard, and learnt what most interests me is private equity, but I understand that it is generally necessary to start in IB before transitioning to PE. Also, there is a problem that private equity is not widely developed in Chile and Latin America.
My main concern is whether investment banking is the right path for me. I am not sure if I want to lose my 20s working so much and stressing out. I am concerned about the long hours and the impact they may have on my personal life, including relationships, family, friends, sports, and leisure, and I worry this may burn me out. I speak with my friends, who aren’t even thinking about their career, but I know they are unwilling to work long hours. I also have a problem with IB that I feel it doesn’t generate value to society. Maybe it isn’t that bad as I think and I end up loving IB and want to stay there all my life, but I wonder if it isn’t worth it. I am uncertain whether sacrificing my 20s for a few years in investment banking to gain experience and learning before pursuing an MBA is worth it.
I have been exploring alternative options, including corporate finance, asset management, and consulting. While I find corporate finance interesting, I am unsure whether starting in this area is the best choice for my long-term career in finance. I believe that starting in investment banking, building a career for a few years, and then pursuing an MBA before transitioning to the financial area of a real-world company may be a better path for me. While I enjoyed my experience as an intern in asset management, I am not enthusiastic about the first-year analyst jobs in this field. I am more interested in the work of portfolio managers, assistant portfolio managers, or traders, but I understand that these roles require more experience. Nonetheless, I believe that being an analyst in investment banking could benefit me if I decide to return to asset management in the future. Finally, I have also considered consulting, which I find engaging and value-generating. However, I am more passionate about finance than consulting, and I have focused my studies and career goals accordingly.
I would appreciate any advice or insights that you could offer on my situation. Thank you for your time and attention.
To answer the “PE not widely develop in LatAm” part of the problem, have you considered moving to a different region? Europe? Met some colleagues who moved from Argentina quite easily in Europe to pursue IB/PE path.
Also, from reading you, would not you be more interested by working on mid market deals? It’s not as prestigious as BB but will give you good exposure, more interesting work and could easily exit into mid market PE later. Also working hours are better if you pay attention to which boutique/firm you end up in.
All the best!
Hi balaruc, thanks for answering.
Yeah i've considered moving to other regions, Im going to finish my last semester in Bocconi, which maybe could help me to look for something in Europe. I also have a US passport, so looking for jobs over there is also a huge opportunity, but my CV in the US isn't as strong as it could be here, so it may be easier for me to land a job in a BB over here and maybe then move to the US with a BB in my resume.
I hadn't thought about mid market deals as here in Chile I could try and get in a more valued company. But yeah I should look more on it and see the options, given my concerns on hours. Also I could look for a job in the US or Europe considering that option, so thanks I hadn't thought about it.
Thank you very much!
You could easily leverage your bocconi diploma in Europe, especially in Spain with MM firms like Alantra or corporate finance teams in big 4 where the rythm is a bit better.
Hope you find your answers here and through networking calls.
Best
It's understandable to have concerns and doubts when making important career decisions. It's good that you're considering different options and evaluating what aligns best with your interests and long-term goals. Here are some insights that might help you:
Work-life balance: Investment banking is known for its long hours and high-pressure environment. However, it's not uncommon for professionals in other industries such as consulting, corporate finance, or even asset management to work long hours as well. It's important to research and understand the demands of the role you're interested in and assess if it's something you're willing to commit to. You should also consider if you're willing to prioritize work over other areas of your life for a few years.
Value to society: While it's true that investment banking doesn't directly generate value to society like healthcare or education, it does play a crucial role in facilitating the growth and development of businesses and economies. It's also worth noting that working in investment banking can provide you with a valuable skill set and experiences that you can use to make an impact in other areas of finance or in the community.
Private equity: While it's not widely developed in Chile and Latin America, private equity is a growing industry globally. Starting in investment banking can provide you with the necessary skills and exposure to transition to private equity in the future. You can also consider exploring other areas within finance that interest you and align with your goals.
Career path: Starting in investment banking can be a great way to gain a broad understanding of finance and build a strong foundation for your career. It can also provide you with opportunities to network and gain exposure to different industries and companies. Pursuing an MBA after a few years in investment banking can open up more doors and help you transition to other areas of finance or business.
Personal interests: It's important to pursue a career that aligns with your passions and interests. While consulting or corporate finance may offer a better work-life balance, if you're not passionate about the work, you may not be fulfilled in your career. Consider what motivates you and what you enjoy doing, and try to find a career path that allows you to pursue those interests.
Ultimately, the decision is yours, and it's important to take the time to evaluate your options and make an informed choice. Talk to people in the industry, research different roles and companies, and seek advice from professionals and mentors. Good luck!
thanks for the insights mr gpt
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