Offer opinions
I've been in an IB Coverage group for just over a year (came in with industry experience and now an a3 up for associate promote in March). I've been offered a private equity role at a co-investment fund with AUM of 500MM. Comp is all in around 160 (base plus bonus with no carry). The comp represents a $20k pay-cut which i'm not very comfortable with; the firm is trying to sell me on the upside..but if you receive no carry..not much upside. How do you guys get comfortable making the switch with no carry and no clear line of sight to more money than banking? I want to be on the buy-side but didn't imagine taking a cut to get there. If i were to stay in banking and get the A to A promote - I would be at $220 all-in. Even if the PE comp went to $180 next year, the spread would just keep getting wider. Thoughts?
Since you're ultimately concerned about the $, stay in banking. Conversely, depending on the shop, I would take the pay cut, do my 2 years on the buy-side, just to have the option of returning to the buy-side if I wanted to. In both instances, playing the long game will be lucrative (one increasingly lucrative with short term sacrifice + luck).
thanks for your input
probably would unlock more opportunities (in comparison with this) as an IB associate rather than jumping on this gig.
Thanks
For the OP and any other people who might see this thread in the future, can you elaborate on what other opportunities would be unlocked as an IB associate? I thought your opps become limited as an associate.
I know someone who stayed in banking for the same issues you’re grappling with and he seems happy. He liked his team and was close with his MD so he decided to stay and not take a pay cut. I think it’s a common situation.
Do you mind sharing what you did before you lateraled into banking with experience?
Back office finance for a large global oil company..had to hustle my way into banking
I don't know if focusing on short money ($20K is not a lot of money) in the here and now is the right way to think about this.,..what do you WANT to be doing? The money will come
Not 100% sure but I do know somewhere on the buy side
Then take the buyside role. $20K will be nothing down the line. Hard to move to buyside from IBD Assoc. Not impossible (especially with an analyst background), but more difficult.
Also, ppl often take a pay cut to move to buyside (in the short term, at junior levels). That's part of how the banks get you....
The difference is not $20k, its 60k and will most likely grow over time per OP's comments. That may be material imo.
definitely stay in banking, it's not worth it to go to the buyside unless the opportunity is fantastic.
Great viewpoint from a summer analyst. Really considers all the factors that goes into the decision
Not sure where an A3 makes 180k and an AS1 makes 220...that delta seems too thin.
Associate base got bumped to 150k...isn’t there typically an A-A promote bonus?
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