Haven't been active on the site in awhile. WSO is a great resource but the amount of misinformation shared is high, which I guess shouldn’t be surprising given the target age cohort of the site. Hoping to provide some new perspectives. AMA
- Bio
- Entered banking as a post-MBA associate
- Currently highest titled non-group head role (think Partner / SMD / MD depending on the bank)
- Have lived in SF, Chicago, and NY during my banking career and live in one of those cities currently
- ~40yo with a family
- Background
- Currently at a boutique and have worked at both BB and MM previously
- I consider boutiques to be the more established, broad-based advisory firms (Moelis, Lazard, Evercore, + 5-6 more), MMs to be the household names, and not many beyond the top tier (Baird, Blair, Houlihan, + 2-3 more), and BBs to be the names typically associated with traditional BBs (sorry Wells/RBC). No offense to other types of firms that have great bankers, I just do not have experience there
- Have completed $40bn+ in M&A. Largest transaction being ~$9bn and smallest being ~$200mm
- Currently at a boutique and have worked at both BB and MM previously
If you are thinking about going into banking longer-term (and this includes associates) - I personally would prioritize team/group over brand. The job is tough and if you're working with people that you generally dislike, your tenure in banking is likely to be short. I've gone this route and have been happy and has worked out over a longer time period.
If you are planning to be in banking shorter-term, I'd look at groups with strong deal flow. Brand is more important in this scenario, but I'd take a bank with marginally less "prestige" that owns a vertical so you have referenceable deals. Sweaty shops aren't necessarily bad if youre getting a good experience.
Still fairly junior in terms of MD ranks - but have been MD/Partner for 3 years and comp has been closer to $2mm than $1mm.
My first year as a Director was when I broke $1mm. VP years were roughly $500k, $600k, $700k.
If this isn't Evercore or Centerview then I'm calling BS
He said he's at a boutique in the OP.
Bottom bucket analyst confirmed.
How often do you cheat on your wife and vice versa?
Vast majority of the time, if you're leaving for a competing bank, you'll be walked out that day. Unless you're a rainmaker leaving for a direct competitor, dont think anyone is going to hate you. Its IB, people leave/move all the time. The only time I've seen it become an issue is when one guy downloaded a bunch of information off the drive just prior to leaving.
I encourage my team to level with me. If they want to exit to PE - lets talk about it and I may be able to be helpful. Its a touchy subject and some banks/bankers have policies against it. If you have a good relationship with a senior-ish banker, I'd level with them. More often than not I've seen analysts leave for a Tier 2/3 sponsor and the MDs are confused..."wish he/she would have said something, I could have called [better sponsor] and gave him/her a recommendation". But you need to use your judgement here and speak with someone you've built trust with.
How does it feel knowing that EVERY single analyst working under you absolutely DESPISES the work you are asking them to do. Every markup you give is hated.
EVERY single one of them is desperately trying to leave the industry and hate all transactions you are running
During pitches you grind them on they will have conversations behind your back that they hope they lose the pitch since they are too swamped to deal with another transaction
It's very likely they despise you as well (not as an individual, but as an MD banker). If you are a dick to them (50% chance you are based on most MDs i know), then they hate you individually as well
None of them want to be you. Not one. They all want out.
the day they secure an offer for PE/VC/Startup and resign and stop working on YOUR transaction will be truly one of the happiest days of their life(100% srs).
How do you keep going knowing the response all your comments and markups truly evoke?
Hey man - sorry your experience in IB has been tough. And toxic. Not every firm / group has same dynamics. Good luck at your next stop.