What is the career progression for those in (IB) BO/MO?
As a student it's very clear to me what the "generic" path is in IBD. I know everyone's story and path is different but from what i've gathered it can be very straightforward.
Analyst -> Associate/MBA/PE/HF/Other ->VP ->MD etc.
What is the pathway for those who don't make it into FT FO positions out of undergrad? What is the pay like for middle office and back office positions and how high does it get? I have never seen any threads or topics regarding what people in these positions go on to do, besides lateral moves into FO. I am very, very curious what it is like if one does not make it into the front office but still decides to join an investment bank.
I can't tell you from first-hand experience, but I've spent a lot of time here on WSO, so I think I can take a crack at this. If you don't make it into FO directly out of undergrad, it looks like this:
UG --> Flood of Shame --> Unmitigated Despair --> Begging, Pleading --> Non-Elite MBA --> Certain Failure / Flyover States / Equities in Dallas
Guys? How'd I do?
there are more than enough of good, well paying jobs at MO and BO. This forum is all about prestige and while that's fine, one should remember that a career path in MO/BO can yield you good salary with decent working hours. It's all about your preferences: got a wife and want to spend time with your children? then probably IBD FO is not for you. Want that PE megafund associate role? Then you need to be a rockstar at everything you do. Not everyone needs to and definitely can't become an M&A banker.
and before someone's witty comments, no I never applied for/worked as a banker.
It's all about perspective.
You're asking a group of people who work FO in IB, HFs, VC, PE. Aka... the people who earn (or will earn) the 0.001% of the 0.001%. Many BO/MO jobs can/will allow you to earn hundreds of thousands of dollars per year.....the avg. American household lives off of around $54k/year....not specific to any age group, but the entire population.
BO/MO is usually associated with "better hours," meaning 40-50 hours a week obviously depending on position/firm/department/busy season/etc. That being said, the work is also more mundane and not as 'prestigious' as FO roles....newsflash though, NOBODY ELSE IN THE WORLD knows that HF = Hedge Fund, PE = Private Equity, etc, etc.
To that point - if you tell a girl (or guy/whatever) "I work at Goldman," 9,999 out of 10,000 times - the follow up question won't be 'oh which department? Oh you work with LBOs?!?! That's so hot." No - they will associate your role (whether it's finance or M&A) with a bank. Nobody outside of this industry knows the difference between BO/MO/FO ...frankly, nor do they care.