Wachtell Lawyer looking to pivot into Finance
Hi all, I'm a junior M&A associate at WLRK looking to pivot into finance. End goal is ideally distressed / special situations investing, but unsure how to get there. Willing to spend a few years in banking or get an MBA if necessary.
Background is Ivy undergrad + H/Y law school if it matters. Any help appreciated.
I've posted this before on this forum, you should feel free to dig through older posts of people trying to switch from law to finance. The ideal situation for you should be to move out from doing M&A work to more restructuring work at your firm. WLRK is not exactly Tier 1 in restructuring but good enough to get you looks in the future if you play your cards well. Your M&A work will very much not be relevant here for distressed/special situations unless you also spent time working on credit docs/leveraged financing tied to M&A. The other thing in your favor is you are a junior associate - its easier to make the switch to associate level in banking (as opposed to VP, etc that is a lot harder).
The path you should gun for is: Associate Law (go for M&A to Restructuring work)- > Restructuring Associate at a bank (1/2 years max)- > Distressed Investing. You could potentially use your School network to move (some H people have done it, not sure about Y) directly, but that will depend on your pre-law work experience.
Best of luck!
Here's the notes that I posted before:
1. Banks will always value your background. The disadvantages you point are not relevant. Your background is very invaluable. The question is which team - Coverage vs M&A vs RX vs LevFin etc. You do not need an MBA.
2. RX, LevFin and associated groups will look very favorably at you, particularly if you worked on drafting credit agreements, or were peripherally involved in the credit process tied to M&A (staple financing, etc etc).
3. Do not just assume that just because you worked as M&A lawyer means you are ready to do Coverage or M&A or that they will prefer you. The only thing that really works in your favor is that you understand a deal process (and the intensity it brings). M&A lawyers are basically quarter-backing the deal from a legal perspective- you are the liaison for say regulatory lawyer, anti-trust lawyer, ECM lawyer,etc (the job is not just drafting, its getting a bunch of specialists to provide drafting/other inputs on a deal from legal perspective). In the same way, bankers (particularly associates but also VPs) are also quarter-backing a deal but from a wider perspective - In addition to running the math and materials, you are now corralling the management, the accountants, the tax-accountants, internal finance people, debt advisory team, the lawyers, etc etc. Your similarity ends here though. Associate/VP level banking - very much focused on being in the model, checking numbers, having a good grip of financials, etc- these are tools of trade you can only learn through experience and dedication (and most of your background doesn't really help here).
4. Your biggest pitfall would be the perception that you are not good at math, or excel. You have to overcome that both in recruiting but also once you do make the switch. We had an associate once come through a top tier law firm as a lateral after 2 years of law and fell apart because he was completely unable to operate at the same level our analysts were operating at, or check work, or make incremental edits/provide meaningful guidance. (Interestingly, he is now doing something completely unrelated and fun!). As a banker, you are responsible for the numbers, and (almost always) the materials. The buck starts and stops with you. Someone above pointed learning financial modelling - you absolutely must, and not just learn it, but become at least as good as analysts/associates. That should be your standard.
5. Dealing with uncertainty- law is very definitive. Your job is to identify risks and mitigate them for your clients. Banking is often doing the opposite (outside of RX) - your job is to convince the clients to take a little more risk (more equity, more debt, another acquisition, disposal, etc etc). The greatest lawyer-turned-bankers are those that can, among things, make a balanced judgment. This is also a reflection of your earnings potential - law is fixed, banking is bonus based. Are you comfortable with that type of work and earnings?
Source: I was a M&A lawyer once.
Transitioning from a prestigious law firm like Wachtell, Lipton, Rosen & Katz (WLRK) into finance, especially into distressed/special situations investing, is a bold and achievable move. Your background from an Ivy League undergraduate program and a top law school (Harvard/Yale) sets a solid foundation. Here's a structured approach based on insights from the Wall Street Oasis:
Leverage Your M&A Experience: Your experience as a junior M&A associate is invaluable. Distressed investing often involves complex legal structures and situations where your M&A background can be a significant asset. Highlight your deal experience, understanding of corporate structures, and any exposure to distressed assets or situations in your current role.
Networking: This is crucial. Start building connections within the finance industry, focusing on distressed investing and special situations funds. Utilize alumni networks from your undergraduate and law schools, and don't hesitate to reach out to contacts at WLRK who might have made similar transitions or have connections in the industry.
Education in Finance: While your legal background is a strength, gaining formal education in finance could bridge any gaps in your knowledge and make you a more competitive candidate. An MBA from a top program could be beneficial, but consider also finance-specific courses or certifications (e.g., CFA) that are less time-consuming and costly.
Banking Experience: A stint in investment banking, particularly in a restructuring group, could be a strategic move. It would provide you with direct experience in finance and deepen your understanding of distressed situations from a financial perspective. Your legal background in M&A would be highly valued in such roles.
WSO Resources: Utilize resources available on Wall Street Oasis to prepare for this transition. This includes interview prep materials, financial modeling courses, and networking guides. Engaging in forums and discussions related to distressed investing could also provide insights and connections.
Showcase Your Unique Value: In all your applications and interviews, emphasize how your legal expertise adds unique value to finance roles, especially in complex distressed situations where legal outcomes significantly impact financial results.
Consider Advisory Roles: Initially, look into advisory roles that deal with distressed companies. This could be a more natural transition and provide relevant experience that will be valuable when moving into investing roles later on.
Your path from Wachtell to distressed/special situations investing is challenging but feasible with the right strategy and resources. Your prestigious background, combined with targeted finance education, networking, and possibly some banking experience, will position you well for this transition.
Sources: Law to Investment Banking (One Monkey's How-To Guide), https://www.wallstreetoasis.com/forum/consulting/managed-to-pivot-into-ma-advisory-in-a-small-boutique-instead-of-tech-consulting?customgpt=1, Q&A: Leveraged Finance Lawyer here, Why do lawyers do so well in finance?
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