Should I lateral?

Based on the most helpful WSO content, here's what you need to consider:

1. Leveraged Finance vs. M&A for PE/Growth Equity Goals:

   • Leveraged Finance (LevFin) provides strong credit analysis skills, which are valuable but not as directly aligned with the equity-focused skillset required in PE/Growth Equity. Your exposure to the equity story of investments is limited in LevFin compared to M&A.
   • M&A roles, even on a weaker platform, typically offer better exposure to the buy-side investment process, including valuation, due diligence, and deal structuring. This experience is more directly transferable to PE/Growth Equity.

2. Importance of Brand Name:

   • If your long-term goal is to move to a MM/LMM PE or Growth Equity fund, having a strong brand name on your resume can significantly enhance your chances. While your current bank provides a "London brand name," moving to a stronger M&A platform at a bigger bank could make you more competitive, especially if you're targeting funds in your hometown or other developed markets.

3. Exit Opportunities from LevFin:

   • LevFin professionals often exit to credit-focused roles, such as direct lending or distressed debt funds, which may not align with your PE/Growth Equity aspirations. While transitioning to PE from LevFin is possible, it is generally more challenging compared to M&A.

4. Work-Life Balance (WLB) and Compensation:

   • You mentioned being happy with your current WLB and compensation. Moving to a stronger M&A platform, especially at a larger bank, may come with a trade-off in terms of longer hours and potentially more stress. Consider whether you're willing to make this sacrifice for better exit opportunities.

5. Your Hometown Move:

   • If you're planning to move to a developed market outside of London or New York, having a London-based brand name on your resume will still carry weight. However, a stronger M&A platform could make you even more competitive in that market.

Recommendation:

If your ultimate goal is PE/Growth Equity, and you're willing to trade some WLB for better exit opportunities, lateraling to a stronger M&A platform at a bigger name bank is likely the better move. Even if the M&A team at your current bank is an option, its weak platform may not provide the exposure or brand recognition needed to maximize your chances. However, if you're content with your current setup and prefer maintaining your WLB, you could stay in LevFin but focus on networking and positioning yourself for MM/LMM PE roles in your target market.

Sources: Leveraged Finance – 2017 Update, Advice for New Analysts Seeking PE Exits, Leveraged Finance – 2017 Update, Thoughts on Starting Investment Bank/M&A Advisory for my Company