Skill set at LMM sell-side vs MM/BB
Currently an intern at boutique doing sell-side LMM and growth equity capital raising transactions. The boutique is focused solely on cleantech and renewables. My plan was to work at the shop for a year or two after graduating while looking to lateral to an MM/BB/EB.
Is there a material difference between the skill sets developed working on growth company transactions and working on larger transactions at an MM/BB/EB? If so, what are the differences and would it pose as a challenge for me to lateral?
I’m in London. If I want to jump onto the buyside (LMM/MM/UMM) is it doable from a very small boutique? Thinking of doubling down on the energy transition niche. Are funds (alternative asset managers) in London really stringent about candidates coming from a larger sell-side institutions?
Any sharing and advice is greatly appreciated!
Bump
Thanks
It’s likely that a lateral to a MM IB would be most likely. Also likely that your time @ the boutique will be discounted (lucky if every 2 years is discounted to 1 year). Obviously the quicker you lateral, the better. But yeah, it will be possible for sure if you interview well.
May I ask what are the reasons for the experience at a boutique be discounted? Sorry if it’s obvious and that I’m asking for you to spell it out.
A deal team consists of an MD and one or two analyst. Would the high level of involvement in transactions as an analyst be viewed as a favorable experience?
On your first point, just seems to be one of those things. Obviously depends on which boutique you’re at, if a trail blazer then maybe you won’t be discounted, but more often that not you will be. It’s just the way it goes from what I’ve seen. Also, no disrespect intended but the discount is often warranted. There’s just something about being in a larger IB that you just won’t have experienced at a smaller firm. You only realise that once you make the move. The things you thought you knew are done way differently once you make the step up. But don’t be too concerned about that - if you’re really as good as you think, you won’t be in that lower role for too long.
Re second point, yeah of course it will help your cause.
Thanks for your sharing, it was helpful
100%. There is definitely a possibility of rapid skill building when you’re in small deal team at a boutique. Those guys can develop at a way faster pace than peers at bigger firms, out of necessity, because as a sole junior on deals you have no choice but to master everything qualitative and quantitative.
But the flip possibility is their experience could’ve been an absolute joke working on bucket shop deals and processes that don’t translate at all. Impossible to tell which it is until they’re in a new seat for few months. If you get demoted and you’re as good as you think, you’ll run circle around your peers and get top bucket bonuses and early promotions. If not, you’ll be grateful you got to step up. Win win situation.
I think
- more doable to go to MM within 2 years (unless the boutique you are working for is one of the top advisors in the sector)
- fundamental skillset and valuation knowledge should be quite similar, but the difference is that you work with bigger teams / more complicated transactions in MM/BB/EB (currently working at a bank that is one of the top advisors in the industry)
- more doable from LMM boutique to LMM buyside (MM/UMM take people mostly from BB/ elite boutiques)
Hope this helps
What are the top BBs for cleantech?
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