Hey Guys,
Right now I'm in a really unique position in terms of summer/full-time opportunities. I'm currently a junior at a target. Last summer, I interned at an extremely small, basically start-up, investment bank and I was exposed to every aspect of the business. The firm just started in late 2006 by my Managing Director, who formerly worked at HLHZ and UBS, and only comprises of one deal team. After a successful summer, I was invited back for the next summer but I have yet to give them a decision. Since school started, I've still been helping out at the firm through minor pitchbook work and taking care of various tasks while living at school. Last Friday, I went into the office to visit my MD to see where he was looking to take his firm. His response was very favorable, in my opinion, as he was very ambitious and optimistic about the growth prospect of his firm. He then went on to offer me a post-graduate position (in 1.5 years) to work as his analyst, in addition to the summer position that was already offered to me. He said that compensation would be above the street numbers, both base and bonus, and that hours would be similar. I would receive official training from various outside organizations such as Wall Street Prep.
Now the question is: Should I forgo the upcoming on-campus recruiting with BB firms and partake in this very unique opportunity? I believe that my chances of obtaining an SA position would be good (prior IB experience, 3.9+ GPA), though nothing is guaranteed. However, I could become much more of a 'player' in the firm if I were to join this start-up, which by the way had a banner first-year in terms of revenues. I would have been there since the start and this could pay dividends in later years as the firm becomes larger. Another factor is that I had a great time this past summer and really love working with the guys at the firm.
This is a really hard decision for me. What are your thoughts? Feel free to ask any other questions that may help clarify things.
Thanks!!
It's not a simple question to answer, and a lot of people will tell you to go to a BB or more prestigious boutique, but don't underestimate the rarity of having a great time at a firm and liking the guys you work with.
Yeah, it's also worth mentioning that exit ops and b-school prospects will take a hit if I go with the small firm. However, if I were to go with the smaller firm, it could be for the long-haul.
This is the only meaningful issue here. If you want to work for this guy after graduation, and think it'll give you a good experience, TAKE THE JOB. If, on the other hand, you want a more typical experience, apply to the banks etc.
One thing you haven't addressed is the timing on this offer, as long as it doesn't hurt your opportunity with this firm to apply to normal SA positions, you have no reason not to. Interviewing practice is always good, at some point you will need to have do a lot of it to do well.
From your stats and reviews of previous summer performance, it sounds like you would be likely to get SA offers from top BBs. The small firm sounds like it has good pedigree and potential to be a respectible, even prestigious MM shop down the road. With that said, as cool and unique as the opportunity is, it would only be my choice under a few specific circumstances. If you think you want to be in banking long-term (ie beyond 2 year analyst stint), and are willing to trade accellerated involvement in deals and a better work environment for smaller transactions at a less-than famous name, then the small firm would be a good choice.
If on the other hand you think you want to go into PE/HF sooner than later, or you want to be a rainmaker banker one day, working on mega mergers etc., I would put your impressive stats to work and try to get a job at a top BB. Worst case, if you keep a good relationship with this guy, you could always move back as an associate if you burn out or change your mind. Moving from BB to MM is much easier than the opposite.
In the end, your success in the long run depends on your abilities, not whether you worked at Goldman, Morgan Stanley or Lehman. If you are going to be doing useful work at a smaller firm (maybe even more exposure to dealmaking than at a BB), I would go for that. Everybody and their mama wants to work at a BB, doesn't mean it's the best thing.
i would stay with the start up. The BB name/training/experience is very valuable but this seems like a really unique situation. Does you MD have any b-school connections that he could help you with in the future?
My MD has worked w/ Sloan, UChicago GSB,HBS, and Kellogg in providing case study materials. There is no really time expiration on the offer but I would like to get back to him soon.
I think I would want to stay in banking for the foreseeable future.
sounds like a great place. I also think if you want to stay in banking in the foreseeable future then you should take it. I'm sure you don't even need to get an MBA to become an associate and if you grow with the firm, there is a chance you will make a lot more money than you would with a BB.
The MD may not be lying to you, but most entrepreneurs are notoriously overoptimistic on their firm's prospects. In my experience, they are worse than salesmen, especially when trying to attract talent. Just get everything in writing. I've had bad experiences with smaller shops.
Yeah I will get everything in writing soon. He has incredible leads from various relationships that are filling up the pipeline. I don't think he was at all overly optimistic in his goals.
any other thoughts/comments?
is it KippsDeSanto?
it was started last year by some HLHZ bankers.
In a smaller firm, you could play a bigger role.
If you go for one of the bigger BB, you not going to do as much. Realized that it will be 1 anaylst competiting vs 100 competiting.
Beside, if it donesn't turn out right, you still have a strong resume to find FT with good BBs.
Ling~
untilted - nope
I'm pretty much looking to decide on both summer and FT right now
sorry but i gotta bump this
ahh i need more opinions
if i were you id apply to the BBs and see what happens - if you can. I am hoping this guy didnt put u on a deadline. in my opinion it is always best to keep ur options open as long as possible. rule of thumb for offers: "Collect Then Select." Do u think that if u spent the summer away at a BB that he would take u back as his analyst FT if thats what u wanted?
fafa - I could, and have applied to BBs but I'm trying to decide if I want to go through with the interview process. There is no deadline on the offer but I would like to get back to him asap so he can recruit another analyst for the summer if I down it down. If I take an internship at a BB this summer, I don't know if I could go back for FT since he may have already hired by that time. I don't really want to take a BB SA, not like it, and lose something that I thoroughly enjoyed doing.
Well?
Maybe? Does it matter?
u need to do whats best for you, not whats best for him. recruiting is a very selfish process.
Does it matter? Maybe. I am thinking about transferring to UoC from another Chicago area school, and since you're a junior who may or may not go there, you may or may not have a perspective on the school vis a vis IBD that I would be interested in hearing. lol. So, do you go there?
PM me
Caveat: Just a college student. Not particularly qualified to be offering advice.
I wouldn't think twice before taking the job if you think there's potential this firm would be even moderately successful (as in not crash and burn). Decidign to be one of a few hundred monkeys at GS or something instead goes beyond risk aversion, its silly. You're (I assume) in your early 20s. Even if this doesn't work out, you have plenty of time to pursue other opportunities (including with BB firms, since it seems you are/ would be very qualified). I know most banker types don't have that much entrepreneurial spirit, but PLEASE TAKE THE JOB. If this turns into a decent MM firm, you'll be much better off for having been in on the ground floor than being another analyst at a BB. This might just be the economist in me talking ( I value scarcity) , but i think the uniqueness of your experiences would more than compensate for any loss in BB name advantage or what not.
I think the entrepreneur in me is making me lean towards going with the smaller firm. I really would enjoy taking up the extra responsibility in firm management/recruitment since it would be a good change of pace from the usual excel and powerpoint.
dazedmonk - thanks for your input. Your reasoning is very similar to mine.
I really appreciate all of your opinions.
Get an idea of pay at assoc and VP-levels... An extra $5K at analyst-level isnt that importnant...
You'll be lonely since you wont have any peers of your age at work. Would that be a problem?
I don't think I'd get too lonely, the guys at the office are awesome =P
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