Why most ppl shouldn't do RX
Ignore title. Just finished analyst years at PJT/EVR RX. Thought I'd put my two cents since I see RX getting increasingly popular for the wrong reasons. The RX grind is a different beast (M&A/Coverage is really easy imo) and there's opportunity cost involved (can't apply for a firm's M&A and RX team unless generalist).
- MF PE exits aren't as good as they seem. Lots of RX teams have a comparable if not better M&A team (see EVR/LAZ/CVP). Only exceptions are PJT/HL/PWP/GUGG. But let's be real, you're not studying for months so u can get PWP/GUGG. Also, there are better M&A/coverage groups than HL RX. The real reason to commit to the Rx grind is if you are interested in distressed/SS long term. If that's the case then RX is a no-brainer.
- Non-transferrable skills. If you want to exit to MF PE or L/S HF then you spent the last 2 years learning a set of skills that are useless. Although I'll say that coverage/M&A banking is probably not teaching you anything special, it's more helpful than working on LMEs.
TLDR: There's good reasons to do RX. But they mostly revolve around going to distressed/SS exits. If that's not the case and u just want to exit to MF PE or L/S HF then you're really just forcing yourself to commit to a more difficult process for no reason.
Forgive my ignorance but what do you mean by "SS" exit
special situations investing
Ah duh, thank you.
Can you explain why exits are not as good as they seem? Looking at PJT RSSGs slide, they objectively have insanely good MFPE exits. And, based on EVR RX exits slide, and comments on WSO, last few classes at EVR RX has placed as good (if not better). Other than a very select M&A / Coverage groups (MS M&A, GS TMT, JPM, etc) - many of which didn’t place as well last cycle and may now have oaths/ recruiting disadvantages - I don’t know of any groups that place as well. Understand other RX shops don’t place as well, but curious to hear why you think even PJT RSSG and EVR RX exits are not as good as they seem?
On your transferable skills point, i was very skeptical of all the RX glazing and thought the same thing before signing for summer. I heard an interesting thing while networking (analyst was a top bucket at one of the shops u mention and now they are crushing it at MFPE). They said that RX work doesn’t teach you drectly transferable knowledge / data the way M&A counterparts does. Instead the training is more like the Karate Kid montage, where u do seemingly more tangential exercises; but when you get to the next job, it all clicks and ur just as competent as the industrials M&A kid who closed 1 deal in his banking years (where his greatest contributions were spreading 50 comps, regularly updating the inflation indices for biz dev decks, and circulating notes). Do you disagree / has your experience been different?
RSSG is p much the one outlier to the exits and is top of the street. EVR RX exits are obviously great too but their M&A team is equally great. But I would never recommend someone to study for RX just for exits. If that was the case then you would be spending months to study for RSSG/EVR RX and everything else is bust. The people imo that should do RX are the ones willing to take a T2 shop (PWP/GUGG/LAZ) because those shops exits fantastically to distressed/SS. On transferrable skills that seems about right.
Did you really go to one of these two groups?
Open secret is that EVR M&A has been jamming class sizes (70+) and per capita placement has fallen from its past reputation. Placement is still alright if you both (a) go to a target and (b) are in TMT/Healthcare/Industrials, but even then RX is the best placing group in the bank, full-stop.
Your information about CVP and LAZ are just incorrect? CVP has a major / minor system and they only have 1-2 RX people in their class, and they can also choose to get staffed on a lot of traditional M&A if they want to, as there's not a group distinction for recruiting out. LAZ RX is most definitely better than M&A, their placement is quite frankly incredible given they only have 5 or 6 full-times a year. Also, Gugg and PWP RX are both great shops and you will get MF PE interviews if you want them from there.
Re: learning useless skillsets for MF PE and L/S Equity. Have you either worked or even interned at either of those roles? Newsflash, the work in banking is completely useless for both on a content basis. What you learn as an analyst is modeling and powerpoint hygiene, speed, communication, balancing competing time-sensitive asks, and producing high quality work product under pressure. RX groups are very good at that by nature of being small and lean. The strongest RX analysts I knew are also the strongest PE associates now.
My colleagues who came from groups this forum sees as the rigorous (Q, GS TMT, MS M&A) have explicitly told me they could have swapped their deal companies out for a completely different one and their workstreams would be unchanged. It's all templates and your MD's hardcoded assumptions. All due respect, you have not done thoughtful, deep research on a company before if you think you can learn anything from the analysis people in coverage banking do.
Agree that kids are going into RX for the wrong reasons and wasn't going to comment initially. But, this post feels off in that the tone and claims it makes sound like it was written by an undergrad versus someone who has actually been in industry...
Isn't RX also known for for "high functioning" personalities? I feel like a major draw of M&A / coverage is being with more socially adjusted people and also a more favorable gender ratio in many banks?
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HL did a restructuring case study for us recruiting at my MBA where they presented the nuances of a deal they did. 10 minutes in it was confirmed this was not for me
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