An recent grad working as an investment analyst trying lateral to IB, but is the market still shit because it feels like it
I am barely any traction and when i do they take forever to start and complete
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Based on the most recent discussions on WSO, the lateral market for investment banking has been challenging. Here are some key points:
Current State:
Timing and Opportunities:
General Sentiment:
Given the current time (October 29, 2024), it is likely that the market conditions have not drastically improved, and the challenges in the lateral market may persist. If you are experiencing slow responses and limited traction, it aligns with the broader market sentiment shared by others in the industry.
Sources: The lateral market is BAD, Lateral Market for Late 2022/Early 2023, Is it possible to Lateral as an analyst with no closed deals, The art of the lateral?, Associate 1 at no-name boutique. How screwed am I for lateralling in the current environment?
It’s not great but definitely improving from 2022-2023. The problem in your case is there is so much bloat still in IB, and a lot of people already in IB are trying to lateral to other banks. So the appetite for people outside of banking trying to break in isn’t great.
Its shit. Lateral hiring is a nightmare, processes are dragged out with really no direction
Have been recruiting myself - there's opportunities but either ones that don't line up with your background or they take someone more experienced.
Lots of boutiques (where they pay under market or make you the only analyst to support an entire team of seniors ) hiring nowadays doing multiple rounds, case studies, and dragging on the process for over a month. It's pretty crazy to see what the expectations are during a hiring manager's market but can't blame them due to economic conditions and plenty of qualified candidates fighting tooth and nail for the same role.
Bump
Market is improving for IB - IB hires from what I have seen. Unsure about recruiting from outside the industry but as another user mentioned there is a ton of bloat at the moment and a surprising amount of people still looking for roles post Covid layoffs.
It's pretty dead. Been trying to land a new role for months. Based on the conversations I've had, firms are mostly pipelining going into bonus season but are not actively hiring at the moment.
There were a lot of people who got fired in 2022-2023. There’s a bloat of talent on the street with experience, and banks have now become extremely selective because they can. That’s the reality.
Am a senior associate/junior VP role at sector coverage and have HHs reaching out and fellow friends at BBs asking me if i want to go back to M&A (previously spent 2+ years as an associate in M&A)
Maybe at the Junior level it's hard? but definitely feel the market is picking back up.
Id say seasoned/reasonably experienced assos/VPs are in quite high demand (as they’ve always been). Market for everything else is p tight
Curious what BBs are looking? Seems like market has slowed down considerably over past few weeks given holidays / YE bonuses and no one actively looking to fill spots now
The usual suspects I guess? but i'm told it's for a 1Q25 or latest 2Q hire due to bonuses etc so you're not wrong.
My bank is bloated at the analyst level so likely will not be looking for any laterals, but VPs are probably seeing a hot market.
During the slump in 2022, most layoffs were centered around the senior level. Non-performing MDs were cut while good ones were kept. Ds and VPs were hit much harder across the board given they are expensive and easy to replace and don't have the benefit of the doubt that better MDs had in that good MDs were expected to manage existing relationships and bring back deals when the market improved so weren't cut during the slump.
Now we're in a situation where the remaining good MDs are bringing in killer deal flow, and this isn't a major problem at the junior level in terms of workload given the excess analyst headcount, but process management has been somewhat chaotic given the deficit of VPs.
I think this has actually been good for analysts and associates as we've had to take on far more responsibility and work directly with MDs and clients which has been great for growth and learning, but there are just some things and judgement calls that analysts can't do / make given lack of experience and oftentimes MDs can be difficult to reach or are not as approachable with random questions that would typically be the responsibility of a VP.
At my bank, a lot of senior associates this year are essentially VPs now, which was not the case 1 year ago for associates in the class above them. We tried to bring on more VPs but it was challenging so brought more senior associates instead. I think this situation has exposed areas of process management where VPs can often be a barrier to efficiency, such as having to sign off on everything before it goes to MDs, but it has also highlighted the areas where they are essential like responding to client questions and managing calls, making judgement calls on modeling, etc.
So ultimately, I'd say the lateral market is still tight for analysts but is hot for senior associates and VPs. We aren't looking anymore since we brought on senior associates, but I think the market for VPs is good given that we struggled to find any.
Market is primed for female juniors. Analyst 1s are being poached with early AS promos. Same way Associate 2s are being lured by early VP promos. Try Canadian banks they are desperate to hire and promote anyone that identifies as a woman. Special sign on bonus if you are a white woman.
Very accurate. Bump. A lot of weak ASO1 these days
IB recruitment / promotions in US and Canada depict a state of apartheid, where men (any color) are considered as lesser beings and only there to warm the seat for white women
Bump
Has heard from my boutique friends they expect more hiring. A lot of BBs like BOFA are pretty bloated at the junior levels, don't expect much lateral BB hiring sadly. Very high chance EB's take laterals from some mid-tier or bottom-tier BBs, so spots are up there but other than that don't expect spots to open up at the BBs. The top BB's aren't as bloated but don't think they take that many laterals and all their laterals basically come from other BB/EB's usually.
Any updates on the lateral market for AN?
Getting looks, but not executing.
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