Staying in IB with good comp and W/L balance, too risk averse?
Look, I'm not trying to brag but genuinely want to get some thoughts on my current outlook and general advice on the question I'll pose below. But here's my situation (and fully aware that many in the industry have it differently):
I honestly have not found IB to be as brutal as so many have portrayed it to be. A1 comp was 175K all in and A2 comp from what I can tell will be only slightly below or flat (rough year). I'm on a pretty paved path to being promoted to associate (where comp is closer to 300-350K and less b*tch work) and while the work may be mind numbing at times, it's not all that bad (but ill have to do a third year as analyst first which is pretty much an associate role without the money). Here's the best part, I can confidently say I've worked (like actually worked) closer to 45-55 hours a week on average (with an occasional 80hr week now and then) while still being on 2-3 live deals at a time throughout my career so far. I think this had to do with me gaming the system with staffers to work with people I actually like and with VPs and MDs that have a clear vision of what they want up front so iteration is very limited. I get to WFH generally whenever I want (although they do expect me to come in a couple days a week, but still very flexible). Now on the hours worked, I still have to work late sometimes because the work doesn't actually hit until the evening so I'm not counting random idle hours. With the way things are, I get to have a good work life balance, take care of myself (I get to work out every day) and see my friends pretty often, go on dates, have hobby, etc. Even have a side businses where I get an extra ~30k (post tax) with minimal incremental hours; and tinker with various start up ideas with friends.
I've gotten offers from a couple of MM/LMM PE firms (full honesty, my shop is solid MM but we don't place crazily into top PE) but hours seem worse with less comp so I'm not interested. From what I've heard too is that the work is pretty similar and the upside towards becoming principal is 10x more competitive. Again
What's been on my mind is that I feel like I am playing it so safe and not exploring different careers (i.e. startups and operation roles) that might be something I could actually enjoy / find more fulfilling, despite lower comp. Another thing is that I am financially pretty stable for my age (24m) with net worth of ~150K (very fortunate to have graduated with no debt and some investments doing well) so I can afford to take risks. The one thing I do know is that I don't see myself (skillwise and desire-wise) becoming a salesperson down the road as an MD / Director.
If you were in my boat and knew that the peak role of this career is not something you want to do but have the option to benefit from a comp perspective for many years, would you stay or get out and try to succeed in another industry / role where you see yourself for the considerable long term and develop the relevant skillset earlier on?
tldr: Making good money right now with relatively low hours in IB with opportunity to make significantly more if I stay on, but worried I might be missing out (or will regret) on other opportunities / experiences and pigeonhole my skillset. What would you do?
FOMO for a career change when you like the career you currently have is kinda hardo.
Take the prestige lens off and just live life. If you actually enjoy banking and plan to stay long-term, you're going to make virtually the same amount of money (if not more) no matter what crazy career shift you make, sans pre-seed startup.
I think the only valid point that supports leaving banking that you brought up is not being able to see yourself as a D/MD. A career is a marathon, not a sprint, and you don’t want to run the whole time towards a job you don’t want
Following, exact same situation. baird, piper, or RJ I reckon.
Curious about your side business that’s netting 30k with minimal work - what is it and when did you start it?
Sounds like you are in an awesome position at your current bank with good hours, being able to work with the people you like and enjoying great flexibility. So many people on this forum do not realize that banking at GS TMT and banking at a chill MM shop is so extremely different. Great for people to read that banking does not necessarily mean 100+ hour weeks with horrible culture and 0 flexibility.
LMM / MM PE is a wild card and you can end up at a super chill shop or a place with 80+ hours a week. The only way to know is through extensive networking but even then you can never be certain. If you are very interested in PE as a career, are prepared to risk your WLB and really can't see yourself being in banking then it might be worth making the jump.
The more interesting option would be to stay in IB while scaling up your side business. Stay in IB and save up money while growing your side business. In a few years, you will have enough savings and your side business will be large enough that you will feel comfortable quitting your job and focusing fully on your own business. If it's not a scalable business, then think about launching some of your other start-up ideas. Being an entrepreneur is probably the best way to become extremely wealthy in a short period of time. Moreover, I can't think of anything better than working for yourself.
Also worth mentioning is that you are in a great position to be able to run your side business. I'm located in Europe so it might be different in the US, but many PE firms here would not look favourably on employees running a side business. I even needed to fight with HR to volunteer for 1 hour a week when I was an intern in PE because they were afraid it would steal focus from the job lmfao...
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