Where do Average IB Analysts Go?
Sorry if this post is naive, but I’m wondering where the average BB IB analyst goes after their analyst years? By average I don’t mean talent, I just mean the average trajectory (not everyone goes to MF despite that being all we talk about).
It seems like most people go to reputable UMM PE or MF, but I think that’s a bit of availability bias and much more common for top groups at top banks.
Where does the average coverage group BB analyst go? MM PE? What % of analysts actually do PE of some sort? What about HF, corporate roles, associate level?
How do these “average” exit opps stack up to IB in comp and lifestyle?
Average IB associate
This is the most accurate answer. I'll go on to say that most people at the associate level fall into 3 general categories:
They're just along for the ride since it's a good job that pays well but doesn't really know what they want to do yet. Will probably leave finance.
People who are essentially being groomed to VP (you can kind of tell)
People still recruiting for HF/PE (LMM / MM) until the A2 level
bump ^^
UBS
Honestly great question - this website kinda pushes the "need" to go BB IB -> MF/UMM PE, which in reality is happening to like 5% of analysts on the street each year.
From what I've seen - yes lots of MM PE and HFs. Seen some interesting corporate roles as well. Then there's obviously the Associate promote, which is a ton of money that's hard to turn down
As someone finishing up their 1st year, the amount of opportunities I get daily from headhunters (even during Covid times) is crazy - there's a ton of demand for IB analysts in all sorts of industries
This. A lot of people expect that these exit opportunities will arise, which is true, but only the minority will achieve it.
If you're focusing your career on future earning potential, you're doing it wrong.
Of the analyst class at BB/EB, in general, what percent go A2A?
Tough for me to say, maybe 5-10%? I would imagine a good chunk of 2nd or 3rd year analysts get offered the position, but a lot turn it down as they get kinda sick of the lifestyle (there are also some clawback provisions in associate contracts related to bonuses)
I also think a lot of BB/EBs prefer MBA associates as 1) it looks better for them to say their associates have MBAs from top BS and 2) they'll be more dedicated. I know very few VPs and above who were also IB analysts at one point, so I would imagine firms would shy away from A2A promotes to some extent given the turnover
4 out of ~70 people
Would you mind sharing some of the opportunities you get from head hunters that aren't talked about as much?
Family offices, corp strat for start-ups, associate at sovereign wealth funds, corp dev.
Also given it's off-cycle now I get lots of emails about sourcing roles at some of the larger PE funds
Tobin & Co.
Purgatory
I've seen average and even below average analysts go to UMM and MF.
There was a below average analyst from my bank that went to a MF a few years ago and is now a Principle at the said fund. It really depends how you do in the interview, and some luck as well.
Thank you that’s helpful. Can see the same thing with SA recruiting.
I probably worded my question poorly but when I said average I didn’t mean average talent I meant it as in what is the average outcome, since UMM/MF is a minority (but still all that gets talked about)
Average or below average analysts sometimes sneak into UMM / MFs bc recruiting is so early these days. For them to get promoted, they must come from a connected family. No shot otherwise
Yeah, it's pretty amazing the career trajectory of some people who manage to repeatedly "fail upwards."
"Fail Forward." - LinkedIn influencer,
I think they leave banking altogether because I would assume that it is more obvious to the company who is average the further up the totem pole you go, and no one wants to be average.
There are a lot of good opportunities outside of going to PE/HF or staying in IB. While IB->PE is the generally accepted "track" for young finance people, I know a bunch who went to startups, large companies, startup->VC, and even government who all really benefited from the banking experience. Some were really good analysts and some were just OK (not bad by any means, just like middle of the pack), but they wanted to move away from finance and these were just some of the opportunities they got.
I know more than a few who just used IB to finance medical school.
Were they always pre-med and then went straight to med school after IB or did they have to take their pre-reqs for a few years after IB?
Become Donald Trump's Press Secretary
BGL, Baird, Lincoln, etc
Are you trying to say that this is where they land out of undergrad or where analysts go post BB analyst stint? Because I was asking about the latter
Curious, other analysts - what % of your group went UMM/MF? I'm at a mid-tier coverage group at a top BB and I'd say 20%
How many individuals?
Depending on their pain tolerance and social skills... you may check their linkedin in a decade and see "Managing Director" by their title.
Average analysts get promoted to Associate after 3 years. When you say average, I think of someone that is: (1) decent at their job. They aren't all-world modelers, but their work product is fine, they do things on time, and mistakes don't happen all that often. They are (2) pretty sociable and well-liked, and thus because of familiarity and standing at the firm, still get staffed on projects and hold responsibilites. They generally don't get overworked like the "rockstars" do, and put up with their time as a junior banker for another 3 years until VP.
As a VP, they do well managing teams and speaking with clients. They're hardly in the weeds on analysis but can speak to anything, especially with a good team of associates and analysts who work behind them, and like doing so because they aren't dicks and respect their time. Deals get done, they keep sticking around with a nice paycheck, and watch all the eager beavers around them continue to leave for greener pastures.
Before you know it, they're at the firm 10 years, know the politics, are well-liked by the old-heads still there and have put in the years to make the jump.
The easiest answer to me for, "how do I advance in Investment Banking?" is quite simple. Let all the overconfident and uber-talented numbers guys run themselves to PE or other "status" finance jobs, do a good job, be well-liked, and be able to withstand the early punishment.
The amount of Directors and MD's I know that bring in business but can't build a model to save their lives is astonishing.
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