Long Only AM vs DCM IB?

Hi everyone, would really appreciate some advice. I’m a rising senior at a non-target school, but have done my best to get involved in as many finance-related activities as possible. I started off in my school’s equity investing fund, then state endowment, and most recently a fixed income internship at a large asset manager (think Fidelity, Wellington, etc).

For this summer, I have an internship with a MM IB firm in NYC with their capital markets group. After meeting with a couple people prior to the start, it sounds like they’ll likely place me in either LevFin or structured products. My plan was to try and get the return offer this summer and then go full time there.

However, I was recently internally referred by a higher ranking person within the fixed income team to an associate analyst position within their equity team. They referred me without me even asking. It’s still early in the process, but I also know a couple of people in that program as well, and have a feeling I could potentially get a spot there.

I was wondering, if I were to get an offer at both spots, what could be the drawbacks and benefits to both? Admittedly, buy side equity investing was what I wanted to do from the jump, but I got the IB offer first and accepted because it was all I had on the table. Through my fixed income internship, the debt side of capital structures has intrigued me, though I admittedly know very little about how the job might go. I’d really appreciate any guidance, and I apologize for this post being long-winded. Thanks!

 

Appreciate the advice. Do you think trying to lateral to one of the larger LevFin banks at some point would be worthwhile, or would the exit opportunities still be solid at the MM level?

 
Most Helpful

Terrible advice from everyone above. Assuming we're talking about LO Equity team offer from a large reputable AM (Fidelity, Wellington) you take that over an MM IB DCM every single time. Admittedly (analyst -> associate) promotion is a bit murkier in LO AM but if you're interested in public markets all these spots are gold. And worst case if you don't like it you can make the lateral to IB. Yes, it's not the easiest of moves but if I were in IB and saw someone from Fidelity/Wellington I would interview the candidate. Also the WLB at a LO vs IB can't be beat

I did my 2+2 (EB IB + MF PE) and will now be heading to H/S this fall, LO AM is one of THE most competitive spots to get with these types of firms only hiring 1-3 analysts a year primarily from HSW. On the other hand, getting an IB offer (BB/EB) is pretty easy and few from H/S (maybe less than 10 a year) go to IB. Although I will be going back to my MF after my MBA if I had to pick another career in 'high' finance with a focus on WLB I would do LO AM in a heartbeat

 

Really appreciate your advice, and tbh my gut is telling me the same. I don’t want to get too ahead of myself because I technically only have the IB in hand rn, but I’m going to make a push for the equity role. I’ve really enjoyed the culture at the AM firm so far and the work, albeit in a different team, is really intellectually stimulating for me. I had an unforeseen health scare during my sophomore year that lasted for a few months during IB applications, so I never got a chance to properly go through the cycle. That’s why I just ended up taking the MM IB offer, but buy side research was always a big goal of mine.

 

Would your opinion change if it was a BB (BofA, Citi type), mid coverage group, and t2 city? Currently deciding between this and capital group/wellington research for junior summer. Thanks a ton.

 

I think it would be more of a real toss up if this was an M&A/Coverage role in IB vs the LO AM position. But since it’s DCM, and you haven’t expressed interest in working in credit down the line, to me the LO AM role is too great of an opportunity to pass up. Highly coveted and great long term.

DCM will limit you somewhat in your exit ops vs traditional IB M&A/Coverage. LO AM is the ‘exit op’.

Worst care scenario after a few years lateral to a HF/other AM or do an MBA

 

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