Lateral hire entry point
If I work for a whole year before lateralling into investment banking, would I join as a second year analyst or would I have to start from the bottom?
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If your work experience is not IB, you will start at the bottom. I spent 2 years in a mix of MO and S&T before switching to banking and had to start over as a first year.
Was it difficult to make the jump from S&T to banking? I'm currently in a similar situation and would love to learn how you did it.
It was as much a factor of market dynamics as anything else. I always preferred banking but took the job I could get in a bad market (2002). After a few years of layoffs IB groups were understaffed in early 2004 as the market started to turn around. I heard rumors of lateral opportunities opening up, and I asked friends at other banks to inquire with HR to find out which groups were hiring. I was actively talking to Citi, MS and Bear Stearns as they were all looking for people. Citi popped first so I went there.
The process itself was a pain because there is no organization around lateral recruiting, and it was up to the individual groups to drive the process. HR was not helpful at all. My friend at Citi really stayed on top of people as I went through several rounds of interviews, which is what I believe really made the difference. It's easy for the groups to continue making no decision without a formal process, even when they need warm bodies. Most people I know who have successfully lateraled from outside of IB tend to know someone, who will vouch for them, in the group where they land.
depends, my buddy did ER, lateraled after a year and got credit for his first year. Although, the industry he covered in ER was the same industry the IB group he lateraled to covered
Sil I think you can shed some light on this one
Thanks!
depends on bank - some are specific. friend of mine lateraled directly from one IB to another (after 1st year) and had to do start from bottom. mind you they're the same tier banks but he kind of got screwed. doesn't think much of it on hindsight - he's still in IB and absolutely crushing it
I know a guy who lateraled from DCM to LevFin at the same BZb and had to repeat a year. If you haven't been doing something very close to IB you probably want to start at the bottom because your skills will be way behind those who have been doing the job for a year and your bonus is judged on your performance vs peer group.
Answer is it depends. Something you might see is if you join in February for example, work February through June as a first year and depending on performance get bumped up to second year early.
"It depends" is the best answer that anyone can give you. If you are coming from a "no-name" boutique, you will most likely lateral in as a first-year. This is what happened to me. On the other hand, I have seen some lateral in from well-known banks or other career fields and lateral in as a second-year.
Hope fully that helps. Be sure to check out my lateraling guide as well. Good luck!
Thanks for the answer. Why would coming from a no name boutique be a handicap if you have deal experience and have done the same stuff you would have done at a bb?
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