Which FT offer to choose in Frankfurt for lateral move to London: Regional Bank M&A Group or Small Cap M&A Boutique?
Hello everyone,
Due to the general market situation in Frankfurt, I was unfortunately unable to receive interview invitations for summer analyst or full-time positions in investment banking at BB, EB, or (U)MM banks during this year's recruiting cycle.
I currently have two alternative job offers for a full-time entry into Investment Banking in Frankfurt and I am unsure which offer I should accept.
My long-term goal is to move to Investment Banking at a (U)MM, EB, or BB bank in London (or Frankfurt) after 2-3 years.
About me: I have a top 10% bachelor's degree from a university that is regularly mentioned in threads here as a semi-target university for London. Additionally, I have internships in the M&A sector of a foreign wealth management bank, at an international small cap M&A boutique, and in the M&A product group of a regional bank in the German-speaking area.
I currently have the following two offers for a full-time position in Frankfurt:
1. M&A product group of a regional bank (e.g., Societe Generale, Commerzbank, ING)
Pros:
This bank is the best positioned in the German middle market league tables in terms of deal size and number among all offers.
The MDs in the M&A department mostly have long-term BB, EB, or (U)MM experience.
Almost every year, at least one large cap transaction is handled.
Cons:
It has no reputation as an investment bank because the strategic focus is on corporate banking.
Due to the customer relationship approach, the bank also handles several small cap transactions per year as long as the relationship is long-standing.
As working hours and culture differ from traditional investment banks, colleagues are not so well connected in the scene and networking is rather difficult.
2. Small cap investment banking boutique (e.g., Stifel Europe, GP Bullhound, Carlsquare)
Pros:
This bank has a pure M&A focus and is perceived as a real investment bank.
Work hours and culture are known to be comparable to stronger (U)MM, EB and BB banks.
Colleagues are part of the Frankfurt investment banking scene, so networking should be good.
Cons:
However, almost exclusively small cap transactions are handled in the German-speaking area.
The MDs only have experience with middle market and small cap players.
Which of the two options would a (U)MM, EB, or BB address in London appreciate the most for a lateral hire?
Is it generally more about who handles the best transactions and is well positioned in the league tables, or is it more valued by potential future employers if you are accustomed to the culture and working hours in a real investment bank?
Thank you very much for your support in my decision.
Based on the most helpful WSO content, here are some insights to help you decide between the two offers in Frankfurt for a lateral move to London:
Offer 1: M&A Product Group of a Regional Bank
Pros: - Positioning in Middle Market: Best positioned in the German middle market league tables in terms of deal size and number. - Experienced MDs: MDs with long-term BB, EB, or (U)MM experience. - Large Cap Transactions: Handles at least one large cap transaction almost every year.
Cons: - Reputation: Lacks reputation as an investment bank due to a strategic focus on corporate banking. - Small Cap Transactions: Handles several small cap transactions due to customer relationship approach. - Networking: Colleagues are not well connected in the investment banking scene, making networking difficult.
Offer 2: Small Cap Investment Banking Boutique
Pros: - Pure M&A Focus: Perceived as a real investment bank with a pure M&A focus. - Work Culture: Work hours and culture comparable to stronger (U)MM, EB, and BB banks. - Networking: Colleagues are part of the Frankfurt investment banking scene, facilitating good networking opportunities.
Cons: - Transaction Size: Almost exclusively handles small cap transactions in the German-speaking area. - MD Experience: MDs have experience only with middle market and small cap players.
Considerations for Lateral Move to London
Recommendation
Ultimately, the decision should align with your long-term career goals and which aspects (transaction quality, culture, networking) you prioritize for your move to London.
For more detailed discussions and personal experiences, you might find additional insights in the WSO forums.
Sources: How to Navigate FT Recruiting: Learn from My Successes/Failures, Regional Boutique vs. F15 Tech PM, please help Lateral Analyst - Should I take this offer? (MM>EB), Accept mid-tier BB Offer or continue recruiting?, 20 Most Frequently Asked Questions - London Edition
Congrats to Commerzbank / GP Bullhound
My advice is to first reconsider your priorities and preferences. What is most important to you (apart from lateral opportunities)? WLB, Learnings, Culture, Pay? Secondly, you talk about lateraling as it is something of certainty. You can't foresee the market in 2 to 3 years and a lateral move from Frankfurt to London is not the easiest (especially not from smaller shops). What I want to say is that there are way more factors to consider when entering FT and you shouldn't solely rely on the (rather uncertain) possibility of lateraling.
However, to answer your question, for lateraling your deal experience matters the most. Here, I think CoBa has an edge over GP for lateral moves. It is the more established bank in Frankfurt and has a stable dealflow. On the other side GP is a tech IB so lateral moves are most likely only within tech, which might limit your opportunities.
Both are not the best shops for lateraling and making a case could be difficult, however, with strong deal experience it's possible. So as already mentioned, better focus on more important questions concerning WLB, Pay, Culture. Also do you want to be generalist or do you see yourself in tech? Questions you need to answer by yourself.
P.s.: I assumed GP because CSQ just recently opened their M&A FRA office and Stifel is not doing well in Frankfurt.
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