What are the disadvantages of working at a smaller bank?
What are the downsides of working at a smaller bank? I worked at a smaller bank this summer - does very well in the rankings but not really a household name.
From my perspective:
Pros:
- More exposure
- Better culture
- Fast growing
- Better hours
Cons:
- Not as much of a flex (doesn’t really bother me tbh)
- Worse exit ops
- Smaller deals, not so much in the press - less ‘cool’
- Pay not as good at senior level (not sure if this is the case..?)
What do you guys reckon?
Not IB but the people I've seen last the longest in PE after the typical 2 years of IB analyst --> PE were all at MM PE firms (only PE partner I know went this route and isn't even 35 yet). He loves it and doesn't regret turning MF offers down (Carlyle I think) he had (typical HYP --> top M&A group for 2 years --> buyside route).
Pay may or may not be larger. Generally, pay will be less since bankers are paid as a percentage of deal value (most of the time).
However, I've heard of MDs at middle market banks making more than MDs at global bulge bracket banks, simply because it was less competitive at the MM bank and they were able to bring in more deal flow.
If you need help lateraling, let me know. I lateraled from a 5-person boutique to a bulge bracket firm.
Deals can also go a bit faster and arguably are more fun in my opinion (aka less sharp elbows)
bump
From what I’ve heard, lack of resources can be a big con.
At our bank we have an team in india that does 90% of our comp spreading, data digs like M&A activity. Also have teams specialized in powerpoint and all that jazz.
Would probably make the job significantly worse if those weren’t available imo.
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