I recently got accepted to a T-10 MBA program that places very strongly into BB and EB IB. Based on my interest in finance, and frankly the pay, right now I'm strongly considering targeting IB as my post-MBA career.
However, my concern and question for others that have gone through the same path, how did you know whether you could handle the IB lifestyle? I'm coming from a tech background, and my weeks generally range from 40-60 hours. Therefore I'm very used to things like being able to cook/eat dinner with my wife and having hobbies during the week. I've always been a hard worker and can picture myself grinding the hours out for the first few years so that I can set myself up for the life I want for my family, but have never experienced the 70+ hour week. So I'm concerned about getting to IB and being completely miserable, and then having missed the opportunity to pursue other options during my MBA (other primary path I am considering is consulting but it doesn't sound like the hours are much better there).
A broader question: post MBA IB associates, how is the quality of your life, and would you make the same career choice if you did it all again? Thank you!
Hey dude. I'm going to keep it 100, the lifestyle change will be extremely challenging for you.
I am a 3rd year post-MBA IB Associate w/ family who will be promoted to VP in a month. Here's what you can realistically look forward to:
1) No cooking or eating dinner with wife, or any hobbies during the week (except Friday night potentially). If this is a deal breaker for you, do not pass Go, do not collect $200 because it only gets worse.
2) Goodbye to tech company perks. No free food/drinks, no social groups, activism etc.
3) Weekend work. The general guideline at most firms is no work 9 PM Friday night - 9 AM Sunday morning -- unless it's for a live deal, at which point there are no rules. That being said, a lot of teams work through this time as well and expect you to be on call, unless you are Orthodox Jewish.
4) Immensely more stressful day-to-day. From what I understand, tech work basically consists of Googling, Stack Overflow, and sharing memes. Banking timelines and expectations will be much more intense by comparison. Generally you're expected to respond to emails within 5 minutes tops. You can have deliverables pretty much on a daily basis, so every day can feel like a sprint (using Agile dev lingo). You'll pretty much not know what you're doing for a full year so the learning curve will be high, and people much younger than you will run circles around you technically.
If I haven't scared you away yet, you may be a good candidate for post-MBA IB! Here are some of the pros:
1) Very little travel compared to consulting. If you were single, I would move this to a "Con." At least you'll sleep in the same bed as your wife 7 days a week, even if you're coming home at 2 AM and getting in to work again by 9 AM. Don't take this one lightly, because it's probably a key factor in keeping my marriage and fatherhood going.
2) Good / stable pay, if you're good, for 3 years. As long as you're in the top half of your class, there is very little chance of you being laid off as an Associate, and if you bust your ass and are top quartile, you have a path to VP and therefore potentially 5-6 years of post-MBA earnings before you're pressured to transition to revenue generation.
3) Learning curve puts your professional development into hyperdrive. It sounds stupid but it's the equivalent to joining some military unit and going through an extended training. You have no sleep, lots of pressure, and need to come together closely with your team to make things happen. Most of the actual work is mundane but if you have half of a brain to pay attention beyond the exact, specific task you're assigned to, the sky is the limit in terms of what you can learn about M&A and/or capital markets.
4) Exit options, there is a lot to say. They are simultaneously overrated and underrated by the community. It really depends on your background and what you want to transition into. That being said, anyone you talk to in industry who has been in banking before will immediately know the hardship you've endured and value you could bring.
Happy to expand further.
Thank you for the thoughtful response here and in other threads. I'm attending an MBA business schools">M7 school this Fall and have been struggling on deciding my post-MBA path. If you have any have any advice, whether it be on career or mindset changes for my circumstances, I'd really appreciate it.
My background is in sell-side finance and am still interested in markets (both private and public), but I value WLB more than most 25 y/o single dudes. My priorities are: Sleep & pursuit of my hobbies >= growing/learning professionally > prestige = money
The learning curve you mentioned which pushes professional development has been the main factor of whatever early career success I've had and I still want that for the future. I know I sound like a whiny millennial who wants his cake and to eat it too. But did you know of any roles that matched my priorities and interest in markets? Paths I'm considering are investment management (hard to get into and dying industry) and corporate development.
FLDPs have great work-life balance but I'm fearful of getting stuck in middle management and feel like I wouldn't be developing as much professionally.
Thank you and anyone else that may have some thoughts
I would like to quickly add that if you're afraid of getting stuck in middle management, corporate development might not be the best place for you. I'm currently interviewing for a handful of CD roles and would say that a lot of people I've met and talked to have seen their career progression stagnate once they reached the director level. Even reaching the director level could take quite a bit of time as well depending on the company. Just wanted to give my two cents.
What I wouldn't give to be in a non-revenue generating role again :s
This is extremely accurate. Would only add that there's significant volatility in your work schedule with no clarity which is, for me, the worst part. You might think you have the weekend free but one email at 5:30p on a Friday could change everything... it's nerve-wracking at times.
As someone who went the post-MBA consulting route, I'll add that while the hours might not be IB hours, you're either going to be on the road most of the week, or you'll be working long hours at your home office with your team - neither of which will allow you to cook dinner with your wife or have hobbies during the week. (Assuming you aren't talking about Federal Consulting)
To be honest, if those are two things you don't want to give up for the next 2-3 years, I'd probably look at careers other than IB/Consulting.
I think this is one of those "if you have to ask . . " type of questions. If your personality/interests are particular enough that you wonder whether the lifestyle will work for you, it's a pretty sure sign that it won't.
There are always exceptions but generally speaking, the hype is real and the post MBA associate lifestyle is brutal. I actually think its even harder than the analyst lifestyle but those who disagree with me on that point will at least admit its roughly as hard. And its only a little better after making VP.
So to go into that life and have an additional hand or two tied behind your back (i.e. specific needs like wanting to be home a lot for dinner, or wanting to maintain hobbies, etc etc) . . I just think that's unlikely to work.
I did have one associate classmate who had a wife and kids already, and he made it work. But he was also extremely bright and loved the work. Reading about his industry coverage area was how he would spend his free time if he wasn't paid to do it. He also very, shall we say, connected to the man upstairs. So he had that zen-like calm 24/7. IMHO his circumstances are not common.
The positive here is that during your MBA, you can investigate additional career options and network heavily to get a better understanding of what will work. The decision will become evident as you go through the process. If your school is recruiting at that level (BB/EB), I'm sure there are alums in other top finance spaces, and that there are many post-grad options and on-campus recruiting/networking events. I definitely would say (as a woman here, not so many of us), it's something you'd agree on with your spouse before jumping in, you'll need the support and understanding to make it work. It can be lonely, I have had friends (wives) of I-bankers who described themselves as "single mothers".. There are other IB shops and transaction-adjacent departments that are not as time intensive. Sure, experience not the same, but viable and maybe more enjoyable Commercial banking can also be a fantastic, lucrative option, with probably better long-term job security, and shouldn't be discredited as second class. Network, talk to career center, investigate. You have some time. Congrats on the acceptance!
I honestly would not recommend being a post-MBA associate to anyone that didn't do banking or something very comparable before business school. It's probably one of the most difficult jobs to do in banking, because you are expected to "lead" the analysts and drive execution, when 95% of 2nd / 3rd year analysts are more productive and efficient than post-MBA associates with no prior banking experience. The first year, most will be learning from experienced analysts and you are drinking from the proverbial fire hose - many don't make it TBH.
You are expected to have experience... without having experience. Precarious situation.
Playing devil's advocate just a little bit:
This is your only realistic chance to break into banking. The beauty of the MBA is that you can spend a summer experiencing it without committing and see first-hand if you think it's for you. Worst case scenario you re-recruit (plenty of opportunity for FT recruiting in consulting, FLDP, etc.) with the confidence that you tried it and never have to wonder "what if."
For getting a sense of what it's like , it's almost impossible to wrap your head around what it's actually like dealing with the hours and the pressure. I was a competitive athlete in uni, graduated with very strong grades in math/stats and spent 10 hours a week doing stats tutoring as my own business.
Needless to say, I thought of myself as a grinder with ambition. Surely I'd deal with the hours okay?
I did two internships at a BB, and I fucking hated it. Loathed it. I hated seeing my health deteriorate, not being able to take training seriously anymore and not having the ability to travel with friends/date as I pleased.
If you get a lot of satisfaction from daily pleasures like your hobby or spending time with your wife, I'd have a very serious think on whether the extra money really make up for it.
If you can do an internship prior, that's a great way to get a feel - if not, the fact that you're asking this question means that you'll likely enjoy life in banking less overall than other career options.
If you'd consider strategy/finance roles in FAANG instead (it was a great fit for me), shoot me a message.
Have MBA peers who purposefully looked at firms in smaller regional locations (HW/Baird/BlackArch) which seem to offer partial solutions to the problems posed above.
If you really do want to punch your ticket for a couple of years to be financially secure, low COL places such as Richmond/Charlotte go a long way vs. a NYC/SF situation.
Second (maybe this is naive), but the culture at these types of MM firms/locations seem to be more accustomed to people with families? IB is IB and it will never be easy, but I get the feeling they are more understanding about navigating family responsibilities.
It seems like it would benefit MBA associates who want to be in banking longer term to be thoughtful about meshing location/culture vs. chasing prestige when the exit opportunity set is so different from that of analysts.
Can’t confirm yet, but I have the same assumption on MMs. Culture fit and retention appear great, along with reasonable work/life integration (e.g., leaving office at a decent time to pick up kids or grab dinner with family, then log back on at home). Won’t happen immediately, but once you earn your stripes, your work product will speak for itself versus facetime.
I continually hear these anecdotes from friends who started post-MBA and have stayed with the same MM firm, along with the associates, VPs, MDs of the firm I’ll be joining. Clearly a self-selection bias, but retention is a good signpost.
Do not join with the assumption that MMs are "banking lite" - yes, some firms make culture a bigger priority, but at the end of the day, at all these firms when the shit hits the fan, it still hits the fan. In some cases, working at an MM can actually be worse than at a BB because you have so much less support / fewer resources.
Corporate/Commercial banking in low COL city > Post-MBA IB selling your life away in NYC. At least from my limited knowledge.
If you're going to do post-MBA IB for the money at least go to a place where you can save a ton of it like Texas/Charlotte etc. as others have mentioned.
For those who MSed my post. Quick COL calculator using nerdwallet will tell you 250k in NYC (Brooklyn) is roughly equivalent to $135k in Charlotte and $150k in Dallas. Pretty sure you pretty easily get to that point after a few years in commercial/corporate without the lost earnings from the MBA. Granted, the exit opps aren't as good and the earnings growth isn't as robust but unless you're gunning for MD (which very few will actually get), what's the issue with what I said? Genuinely curious.
From my perspective, IB in NYC is almost a rip-off unless you get that nice buyside position afterwards. And even then IB analysts in "2nd tier" cities can also get to the buyside, especially if you're in a city where your vertical is top-tier like Energy in Houston.
I knew I could handle the life when I made my platform and group selection based on interactions with the team and consideration of the broader firm's offering in lieu of selecting a platform atop the latest league table.
My comment was originally intended to suggest that work, and the inevitable hours, are more enjoyable when you and your coworkers are collegial. For me, this was resisting the urge to jump on the specialty boutique craze of PJT, Evercore, and Moelis and their "prestige" when I felt my personality and long-term career interests aligned with other platforms.
For example, do senior bankers appear to lead fulfilling personal lives outside of work? Do they have children? When are they leaving? Are they logging back on from home? Given answers to these questions, how are they perceived by co-workers? Does this align with your personal and professional aspirations? Constant self reflection is needed here.
I spent my youth being in miserable conditions in a combat arms role in the Army.
Banking was an improvement.
As an edit.
I really do enjoy the field however. In specialized units, detail is death. Free running ends on equipment in Airborne operations can kill you or someone else. You track every ounce of kit, every nuance of a plan and area to operate. So the level of detail I like to reflect as well as organization comes naturally. My bosses really like it.
I get treated like an adult. No one really bothers me. No one is shooting at me and I’m not breaching doors or anything insanity anymore. Team makes everything. I cover an interesting vertical and all the way up to my MD are really awesome and I can be candid and open with them. It goes both ways really. I’ve had offers for more money and won’t leave due to my report chain. There is a nature and nurture component to it.