Why do people like IBD?
So I’m a guy who’s gone into the quant space, but I’ve always been somewhat ‘sattelite’ to those who have gone into IB/PE I.e. many of my mates are doing corp fin.
I could never understand why? And I’m looking for reasons beyond ‘risk aversion’ as that’s been beaten to death on this site.
I simply dont see how it can be more interesting than public markets - you’re oftentimes going to be spending your times on the mundane minutiae of some no name firm vs. public markets where you talk about the big picture every day. The work isn’t intellectually challenging, it’s only emotionally challenging (which doesn’t sound like fun). The only valid reason I could see is an impression made as a teenager and an almost-autistic level reactionary dedication to the first ‘good career’ somebody heard of.
I’d like to emphasise I harbour no hatred nor sense of superiority over those who go down this route - that would be highkey cringe. I just never understood it is all. If anyone in this career has insight beyond risk aversion I.e. what genuinely draws people to it, I’m so happy to be all ears.
Most people are not cut out to do HF at a good shop out of school, so naturally people that want to do publics in some capacity, in equities, need to go into IB.
Talent coming out of IB into HF has been declining, hence why undergrad programs now exist, so there’s a small subset of people in IB that are even cut out for publics. In that subset not everyone will be interested in a career with high vol, low job security etc
Didnt get into the top buyside programs so now going to an EB as its the next best option to get into a top shop.
It's mostly because of the relative ease. You don't need to know how to model or develop a thesis as a second year in college in order to break into EB/BB internship, so the barrier to entry is far lower. I know you probably feel a dime a dozen at where you work, but you should be incredibly proud of yourself for what you've been able to achieve. Some people will do the finance grind for 10 years before even getting a look for HF / risk-taking role. Cheers to your success.
Mostly money and for some it is their personality
Probably the best risk adjusted (and reasonably achievable) pay for marginally above average individuals.
I’m in M&A and generally enjoy the work - I’ve worked on some interesting transactions and got to wear many hats along the way. I had a career before IB so PE wasn’t really a viable option at my age. I’m in a good group so lifestyle isn’t too bad, moneys pretty good, can’t complain much. Not sure if I’ll stay in IB my whole career, never know when and where there might be opportunity and given this isn’t my first career out of school I’m comfortable branching out if I need to.
I never really had an interest in public markets. What is so interesting and stimulating about it that you think everyone wants to work in it?
What’s your lifestyle like?
Sounds like an MBA associate so I imagine a pretty good lifestyle.
Because doing deals is fun at a senior level and picking stocks is lame
Nope absolutely wrong!
Tiktok said HF > PE > IB
love the quote from the first kid, “Most people are not cut out to do HF at a good shop out of school, so naturally people that want to do publics in some capacity […] need to go into IB.”, said the ‘Incoming HF Analyst’… please explain the world to us, 22 y/o junior analyst at xyz shop — I can finally tell my wife and kid what went wrong.
Would second what the MD above said, plus 100-fold more outgoing and actually dealing with people — not always for the better, to be fair. But still, not having to deal with public buy-side egos and zero EQ is also a plus.
If someone manages a decent book at an HF, and survives for a couple of years, it’s a very good chance to make big bucks, while M&A is more of a patience/chipmunk kinda game, but private & public markets have both become more commoditized over the years… not the same as in the 80s since institutionalized and less Wild Wild West.
Don’t judge others’ choices just cause they don’t align with yours — more talking to some of the commenters than the OP, who seems to be genuinely interested.
x
I was referring exclusively to people that want to do publics that go into IB rather than anything else.
As alluded to when I referred to the subset of people in IB that want to do publics; most people just don't want to do it.
I like actually making an impact in PE
Hahahahahahahhahahahah
I’m distinctly average
$$$ (Other reasons may exist but this one helps)
I lowkey googled highest paying finance job and said f it we ball. Had no clue it would be this hard or monotonous
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