Post-MBA Lateral / Long-Term Career Advice
Hi,
I graduated from business school last summer (2021) and started as an associate at an industry-focused boutique (SVB Leerink/FT Partners/Macquarie* type). Since then, I have performed very well, MDs trust me and give me lots of responsibility, and I generally enjoy my narrow industry focus. Comp is on the lower side of street, and exits at the associate level are volatile (partially by self-selection), but overall, life is good. While I am open to exit banking for the right opportunity, it is more likely than not that I'll stay until VP and see what happens.
Long story short, I received an offer from a top EB (EVR/PJT/PWP) in a related but not identical coverage group and am seriously torn about whether to accept it. We are talking about going from biotech to healthcare services, from fintech to an insurance-focused FIG group, or from infrastructure to industrials. Comp would be significantly ($50-100k pre-tax) higher; so would prestige.
As mentioned, I am in a good spot right now, so I am seriously debating if the added comp and prestige outweigh the risks of (somewhat) repositioning myself in terms of coverage, not liking my new team, etc. Of course, the comp and prestige are tempting, but becoming an expert in a nichy yet rapidly growing industry (with lots of specialized knowledge/intricacies) might also be a lucrative long-term career play. I would appreciate some advice to help me think through this rationally:
- My resume is heavily geared towards my sector, i.e., I am the (fintech/biotech/infra/insert niche sector) guy and enjoy that role. I am interested in but less excited about the "new" coverage group, so I am worried about potential career implications and opportunities. Is this a valid concern, or am I overestimating the risks of moving because I am emotionally attached to my sector?
- Is there a downside to lateraling as an Associate 0/1? Could this potentially work against me down the road?
- Am I mindlessly chasing prestige and comp here, or, on the contrary, would I be dumb not to?
- I have a good impression of the new firm's/group's culture, but you never know for sure until you're there. I am on the risk-averse side and would lie if I wasn't worried about downgrading my life, but my emotions may cloud my judgment here. Curious to hear your advice and stories, good or bad.
- I am on good terms with my current firm and would like to keep the door open, but I am aware that leaving probably means leaving for good. Any thoughts/stories appreciated.
Thank you!
* I am aware that Macquarie covers several industries. I'd still count them as primarily infrastructure-focused though, but that's beside the point.
Bump
Go to EVR PJT PWP all day
It sounds like your lifestyle now is pretty sustainable and assuming comp is still significantly above what it would be in corporate, I would stay. It's easy to burn out in the wrong group and the pay difference may not really be all that big after tax (and if the new firm pays in stock).
On exits: if you eventually want to exit to corporates in the same vertical you're covering, then it's much better to stay because prestige is less important than relevant industry knowledge if you're exiting. Overall, I think the risk-reward trade off is weighted towards staying just because you seem to be in a place you're happy staying long-term in
How was the lateral process? Did you just apply online or know someone in the group? Were interviews similar to mba recruiting?
I was recruited through a headhunter. I told her I planned on staying within the realm of my current vertical. She said the EB may have some exposure (which wasn't a lie, even though the focus is clearly elsewhere), so I agreed to talk to them.
That led to a behavioral first-round interview and a modeling test. I hadn't networked up to that point but started to reach out to my school's alumni when I progressed to superday. The superday was in person - one interview was technical, the rest behavorial. Got the call with an offer the next day.
Overall, the process took just under two weeks. It was insanely fast.
Total interview prep time (including the modeling test) was about 4 hours, so NOTHING compared to the time I spent during MBA recruiting. There was a greater focus on behavorials and fit, which probably makes sense since you want to avoid hiring the lemons. Most of my interviews were with senior bankers and focused on my story and what keeps me going. Surprisingly, no bullshit "tell me about a time" questions. However, the technical bits that I did get were a lot more challenging than my MBA interviews. No "what happens if depreciation increases by $10"-type questions - they know you know. Instead, the focus was on understanding the underlying concepts and walking them through my thought process.
I've always been very strong technically and intellectually but often failed to convert at the superday stage. What made a huge difference is that this time I went in completely relaxed. While I am type A and always want to put forward my best self, I didn't need the offer at all and had the balls to just be candid and conversational. As MBAs, we always talk about authenticity. Indeed, being authentic and not overly concerned about what they wanted to hear made all the difference in the world.
Thanks for sharing the process. Did you hire the headhunter? Or did he/she find you via linkedin or other means...
Was your manager pissed that you were leaving so soon?
How is your comp on the lower side? SVB Leerink and FT Partners pay top dollar on the street
If you plan to stay in banking or you’re current industry focus in general, then stay.
What industry do you cover?
OP I would reach out to people who have worked at the new firm previously (who may have exited).
"biotech to healthcare services" - if this is truly your situation, biotech may be sexy but it doesn't have as much stable deal flow as HC services IMO. Especially in the middle market.
I would lateral. There is no reputational downside for you, other than the challenge of proving yourself to the new group. But if you're planning to stay to VP, it's only two more years and you'll have meaningfully extra comp in that time which I think you may regret if you don't take the jump. Try to do some research on the group to ensure you like the team. You can ask to come in and meet people too, even if they don't prompt it they would be okay with it if they're truly interested in you. Your comp will be better, your exit opportunities will be better, your resume will be better so the question really comes down to whether you're willing to take the risk of disliking the group. Which is certainly a big deal but you should be able to mitigate that somewhat through your own research.
If you graduated from a school that regularly feeds into banks, you should have some classmates or alumni at the bank. Reach out to them to try to get candid inside info.
EDIT: Something else to consider are what future employers will think. What's your exit plan if you're planning on leaving? What types of companies would you go to? Likely they would recognize an Evercore and may even employ some ex-Evercore people, whereas if you stay at [Macquarie] they'll have no idea what that is. Where did people from the group you're going to exit to? Are they the types of places you'd want to work?
Thank you and everyone else who took the time to answer. Ultimately, this was exactly my line of thinking and it led me to accept the offer. As you suggested, I had some off-the-record conversations with my school's alumni and believe the lifestyle would be similar. There is definitely a risk of proving myself again, but I am confident in my ability to do so. More importantly, there is a risk of moving away from my current industry, which honestly makes my heart bleed the most. However, switching to corporates in my vertical is less of a concern since I am an international; if I decide to drop out of IB, there's a high chance I will move back home and join a corporate there. If anything, the industry connections in my current role may have allowed me to switch to some very sweet buyside gigs. I will still have the industry knowledge and technical skills to land these roles, but I accept that moving groups/banks might make it a lot harder. Probably more than ever, I am on a career banker trajectory and fine with that. My future shop works on highly interesting mandates (i.e., it's not a sell-side shop), and I will have direct exposure the global heads of my new coverage group and sub-verticals. I’m hoping there’s value in that too.
Ultimately, the offer was very strong, there is no reputational downside, my diligence leads me to believe that the lifestyle would be similar, and I think the team I join is good to work with. While I really enjoy my current role, being at a significantly stronger platform may open new doors that I am not currently aware of. Worst case: I hate it, burn out quickly and have to lateral again. Certainly not ideal, but not the end of the world either.
Maybe my thought process helps someone else down the line. I may write an update later this year, but I don't think there is a right answer.
I appreciate everyone's input!
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