Unpaid intern at a boutique IB for the last 5 months… do I ask for pay?
Hello,
I’m a current junior at a very non target who secured a spot at a boutique in SoCal for the summer in an unpaid role. We have decent deal flow and work on sell side mandates in lower middle market.
My school is close to the bank so I’ve now stayed into the school year. It’s a lean team, just 3 bankers. MD spent 24 years at a BB and is very Knowledgeable and friendly. I’m learning a ton and loving it. I believe they usually don’t pay previous interns but by the way I’ve been treated I feel as though I stand out a little bit.
I’m thinking of just staying with this group as long as possible as I get so much deal exposure.
I would like some advice from people in the industry - do I ask for pay? Do I wait it out because the connections are so valuable? (I don’t want to ruin it), do I just keep putting my head down? Wait for a deal to close then ask? Should I just express my appreciation and desire to continue adding value for them? Need some input here on what is appropriate based on the context. I want growth and future opportunities more than just pay, but pay signals that I think. What’s the best play here to maximize future growth. My relationship with this MD is my only ticket into IB.
Thanks guys.
i don’t understand this they don’t even pay minimum wage- seems like a scam
Hm not a scam, I think they just don’t necessarily need interns and growth, so they allow inbound interest to lead to internships knowing the value ultimately comes from the experience?
No you're just getting boned by greedy boomers dude
dude, literally just get something paid.
it sounds rage bait to say just like it’s the easiest thing in the world but by just mass emailing with an outreach tool i’ve been able to get back to back to back to back paid internships and have even been able to negotiate for 25/hr. i’m a first semester sophomore. i did something unpaid first semester as a freshman, but spring, summer, this fall, and the coming spring i’ll have had four paid internships for each respective period. no less than $20/hr.
del
Thanks for the advice, what outreach tool did you use? And how did you come up with your criteria for the banks you reached out to. Thanks.
del
You're gonna get a lot of people telling you to run because in this industry, 90%+ of unpaid roles are scams or dead end cold-calling roles. There are exceptions like search funds internships that are known to be unpaid (how I started), but even then, you have to get lucky like I did to find a good quality one.
That said, if you're interacting with actual clients on actual deals (no matter how small), and it's clear this isn't a house of cards, then it may still be good experience. I wouldn't stay though. Given his experience in BB, it shouldn't be a surprise to your MD that you are looking for something more.
I would start recruiting for legit, paid boutique or MM internships with this role on your resume. You can leverage your MD if he's open to it, or you can just go the traditional cold-outreach networking route. You can put high level descriptions of the deals you're working on on your resume without naming names or saying anything confidential (e.g., "$20 million sale of SMB accounting software business (Pending)")
Thank you
Good input thank you, I’m client facing a little bit on a $40M transaction which has been invaluable to me.
I guess the reason I’m considering staying for a while is because I haven’t lined anything else up…. I’m still going out to other firms via cold outreach on a consistent basis, as well as applying to programs.
Can confirm, I'm at an unpaid, dead end, cold-calling role at a fuck ass firm right now. I guess I also spend hours looking for emails and trying to model DCFs since it's a "rotational" program, but oh my god. My bosses don't even know what they're doing, turns out the firm has had legal issues previously, no clue how they've stuck around for 20+ years.
Any advice on how to get out of here?
What exactly are you doing for them? What are the hours?
Just building buyers lists and helping make CIMs, occasional financial modeling, analyzing LOI. Majority just creating buyer lists or researching VCs for a raise. 20 hours per week on top of school, I can also take any time off needed. Pretty laid back and nothing high pressure.
You can ask for $20 an hour or whatever. If the guy won’t do that, what makes you think he would spend the time to intro you to people he knows?
Good poinf
So we do exactly the same thing to interns and we don’t pay them.
Most likely if you ask for pay it’s going to be rejected and leave a sour taste in MDs mouth. If you do a good job and graduate and later apply for the analyst position you want to be remembered as a good sport.
They do not pay you because the amount of fees they make is nothing in comparison to BBs. Simply put you’re a free labor for them in exchange for very valuable experience - it’s a good trade off.
Just don’t ask for it, ask for reference letters, ask maybe some of their connections are hiring and your MD can put a good word for you.
$20/hour is just not worth it
I think this is my current sentiment. I agree
Agreed. I've also worked at a small shop before and we paid a summer intern. The money wasn't the problem but it was a huge PIA to integrate into payroll etc just for two months. So if you ask to get paid, you are not only asking for $ but also for senior people to spend admin hours doing it.
You're better off remaining unpaid just to keep the relationship as good as possible, since the internship isn't about the money / it's not worth testing it over $20/hour.
Although I wouldn't count on it, there's always a slim chance you get thrown a little bonus at the end.
I'd just go to lunch or coffee with one of the partners and start asking about careers paths and their advice on what you do next? That will take you a lot further, may lead to intros, may get them thinking if they want you permanently, etc. You can even frame it as "look, I get that I'm an unpaid intern, but I am thinking about what's going to happen next in my career, post-college. What would your advice be? How should I think about it?" That may also give you a tell on if they'd take you on full time or not. Maybe even start first with a well-thought of VP/director type, see how it goes and then move onto a partner conversation.
do you get any commission? some of the deal sourcing internships are like that
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