Outlook for UBS

Currently an incoming SA, I know WSO likes to run hate trains on UBS but realistically what’s the outlook for them long term? I know new CEO and potentially head of IB are coming in 2027.

Is there strong possibility of them climbing back up the league tables and CS synergies finally kicking in? I get that they have solid exits but I’m not sure I want to go down the PE route yet.

Just want to prepare myself mentally if the concensus is to focus on lateraling/FT recruiting.

39 Comments
 

Yeah I rejected an offer from them because there is too much instability. The Cs bankers are all long gone and demoted. It’s Barclays castaways running the show at UBS and let’s just say they aren’t Barclays castaways because they were good

 
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Analyst at UBS.

Deal flow has been light and comp is notoriously below the Street. That said, exits for my class have been solid, people landed good MM seats and a few UMM outcomes as well (I’m heading to one via on-cycle). I’m also working fewer hours than many friends at other banks, largely because of the slower pace. If your sole goal is to exit, it's a fine shop to be in. If you’re trying to develop into a long-term banker, I’m less convinced it's a good seat. 

In terms of day-to-day experience, it’s a pretty political environment and teams tend to pod up. As a result, rep distribution varies a lot, some analysts get real exposure, others get very little to none with most somewhere in between, mostly depending on senior coverage and internal perception. You see that dispersion show up in exits too.

 

I am not sure this applies to any group outside of M&T, RELL, and M&A all three of which are probably the worst culture groups at the bank. All 3 work longer hours than average and have no exits. Unsure what other groups qualify; think all other groups have either good culture, deal flow, and/or exits.

 

this is like the 200th thread on this topic over the past couple years, assuming ur an intern it doesnt matter if ur at UBS or not, you can either rerecruit to a comparable or better bank if youre in a shit group, or stay on for a couple years if ur in a good group like levfin or sponsors and then get a solid exit

 

No it keeps getting worse every year and would expect even more turnover of the best people. The bonus pool is easily fucked for next 2-3 years because of the guaranteed bonuses to non revenue generating MDs. To put it concisely, PF UBS is the worst people from both UBS and CS and they have been completely unable to turn things around. Deal flow, culture, salary is all terrible and will likely get worse. MV needs to go and serious restructuring needs to occur.

 

One of the weakest groups at UBS with toxic culture / terrible WLB. Exits skew mostly into LMM shops. Attrition is high because people want out of their terrible hours, toxic culture, and low pay analyst stint. Hard to point to many positives. Some really terrible VP's and MD's to work for there that make people stay up till ~3-4 AM and then wake up at ~6 AM for pitch work. It's not uncommon to find people crying in the bathroom close to the M&A group everyday. That's how bad the culture is.

When you combine culture, deal flow, and placement, it’s probably one of the two weakest groups alongisde M&T (when not considering ECM/DCM, which doesn't place into buyside often). If you have other options, I’d look there first. 

Edit: after further thought, pretty sure it's the worst group at UBS. It's a pretty big battle between them and RELL + M&T though. FIG is also pretty rough culturally with no flow, but don't think it reaches M&T or M&A levels of bad. I think M&A makes it harder to avoid the really toxic people; think you can have an okay M&T experience if you are podded in a different pod away from the really toxic people.

 

M&A honestly makes the rest of the bank look fine by comparison. Dealing with their mid-levels can be brutal, constant pressure with constant "fire drills" at 2:30 AM, lots of yelling, and blaming their M&A juniors whenever something goes wrong. I cannot imagine dealing with some of those people on a day-to-day basis. It doesn't even seem like they have exits to justify the intensity with their exits being mostly LMM's. Not surprising at all that most analysts are focused on getting out as fast as possible.

 

Outlook? more like “look out” below because UBS keeps falling down the league tables

 

Did you leave as an analyst and what size of fund are you at? Assuming you did off-cycle. Curious how your recruiting experience was vs. mine since I did on-cycle for my year basically right as we started training. Not sure how off-cycle recruiting works for UBS given our lack of deal flow as a platform; feel like if you're looking to leave after a year so, PE firms are more likely to actually go deeper into deals.

 

Rumor UBS is considering acquiring a boutique TMT shop to replace its current Tech and M&T teams in the US. Acquisition likely announced in the summer

 

Pretty sure lighting $10M on fire is a better business strategy than paying the current MDs 

 

LB probably: You see Tech is a horizontal, we actually spent $0 on tech hires. We spent $20M on Fig for fintech, $20M on industrials for industrial tech, $20M for HC for Healthcare tech, $20M for Consumer on Consumer Tech and $20M for ECM tech and M&A tech bankers

 

Worth a try the current TMT team is not competitive in the market at all. Havent seen them on any major mandates in years.
If UBS wanted to be #6 (or even #16) in the US they need a functioning practice in the biggest coverage area.

 

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