Why does IB have better exit opportunities than AM?
I've done research but I cannot figure out why IB analysts have such better exit opportunities to the buy side than AM analysts (or even to other paths like start-up/entrepreneurship). At an AM firm as a research analyst or portfolio manager are you not actively doing what you would do in an hedge fund like researching investment opportunities, financial modelling and managing portfolio risk and return? I understand in IB modelling is a very useful skill developed, but don't you do this in AM? Also I've heard time and time again that in your first years as an investment banker you barely do any modelling, rather its 'grunt work'.
Essentially, I'm curious because my goal is eventually to be at a HF (although I'm still figuring things out) but it seems like going down the AM route after graduating won't really help me get there or anywhere else as oppose to starting in IB.
Because you are more malleable as an IB analyst than a research analyst/associate. In AM, you learn an investing style that is usually quite different than a HFs. At an IB, you don’t learn to invest at all, but you do learn how to model, how capital markets work at a deal level, and generally, how to eat shit and like it. From there, buyside firms can craft you better at a junior level. Ultimately tho, if you have good ideas and can generate returns, doors will open from AM—>HF.
No unheard of to go from AM--> HF tbh. IBD is only preferred for specific HF strategies. Also if you're a portfolio manager at a top LO AM you're not going to want to leave for a HF, its a top finance seat lol.
If you want to join a HF, try join one as an undergrad but be aware that styles are very different and you can get pigeonholed quickly. IBD is good because you don't touch a specific investing style and instead just learn about business structure and the market to an extent which keeps doors open.
Another reason is in many cases, at an AM shop, AM IS the exit op. Analysts will stay analysts or work their way up to PM. That's the goal. No reason to leave. Analysts at good funds will make 7 figures several yrs in to their career. Some will make several million. Depends on the fund.
Absolutely correct, the thing people don’t understand is that plenty of good careers are the exit op, NBA stars aren’t posting on NBA Oasis asking about their exit ops.
Is it possible to go NBA --> MF PE --> HSB/GSB?!
Hey guys. I am literally god himself. Any idea of what exit opps are available to me at this point? Will take LMM if it means I can go PE.
Had to take a quick career hiatus recently to send Trump to the White House as a prophet, but looking to get back in the game.
Think you'll have to lateral to hell first
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