Preface: current position - 3rd year Associate at strong regional firm in IBD. Joined straight out of undergrad (end of 2006). Rough times the last few years; base of around $115k (may go up to $130k but not until end of year), bonus of around $40k (in a decent year). Very low job security (seen a lot of people around me get fired year after year). Great team, amazing managers, decent dealflow but tough to get deals to close. Hours not so bad.
The opportunity - Corporate Development/corporate finance Manager at truly massive regional diversified conglomerate's investment arm. Focus would be on analysis for acquisitions/joint ventures in the region; industries invested in already (no exits as part of strategy; buy, hold, manage and operate, bolt on, add new business lines) include retail, leisure/entertainment, some financials. Base pay c. $150k, no idea on bonuses but wouldn't expect them to be significant from what I hear about Corp Dev. Reporting to an ex-banker but get the feeling it'll be a lot of work done myself (Board presentations, modeling etc.; don't know if I'll get an analyst/associate to help at this stage). Not sure about promotion track yet; large enough conglomerate that it isn't going anywhere so the team should grow as they keep adding businesses. But definitely not a clear banking-like track (i.e. guaranteed pay bumps as I move to VP/Director etc.). Hours should be good. The deals are more JVs than acquisitions so may not hire banks as often as say an F100.
How many of you at or around my level would consider this? I love doing deals but a bit exhausted by clients at the moment, so being the driver is kind of attractive. They're pretty active business-wise but my main worries are around (1) peak pay/unclear career progression (2) boredom (pace slowing from IBD) (3) ease of moving into another position if I don't enjoy it (4) missing the camaraderie of a banking team.
What say you, fellow bankers?
Oh, note, all comp numbers are tax-free (Dubai).
1) Assume bonus would be 0. Any number greater than 0 will be a real bonus. In any case I doubt it will top your banking bonus in the next couple of years 2) I don't think you will get bored. It will be easy paced, but I don't know anyone who would be rather working than be at home or in a bar at 8 pm 3) What will get you bored is the lower dealflow. Instead of looking at 20 things with a limited understanding of each, you will look at probably 3-4 deals a year but a good understanding of each of them 4) Exit opportunities might be limited in case you specialise. If you remain a generalist, and if the brand name of the conglomerate is strong enough, exit opps would remain strong. also, if you have been in banking long enough (and the regional bank is a strong brand - like Stan Chart - rather than a small regional bank) you would find that getting back to banking may not be that difficult 5) You would definitely be working more on your own rather than in a collegiate atmosphere. Yes you will miss banking initially, and this is not ideal, but you will get used to it.
Out of curiosity, is it a private conglomerate or related to Dubai/Abu Dhabi Inc? It is a difficult choice but you cannot go wrong either way you choose. If you are married, plan a family, great opportunity. If not, maybe stick around in banking a bit longer.
1) I'm definitely assuming it to be 0 at the moment. That said, the bonus picture at my current bank is a bit grim too, so the higher base pay is useful. 2) Hopefully that's the case 3) This is what I imagined. 4) Will be remaining a generalist. The regional bank is a strong name IB-wise. 5) This is going to be one of my main questions - is there an intention to make this a full-fledged team rather than a 2-man operation?
No, not an SWF-type shop and not a family office per se - it's a private conglomerate and it sounds like you would definitely know which one if I elaborated a wee bit more.
Been thinking about family etc.; I'm 27 so probably a couple of years before marriage. I do know I wouldn't get married while I'm in my current position; I hate the uncertainty and fear of getting shitcanned every year.
To address tmur's point; I think the thing about a position like this is the track career-wise is a little more unclear, but promotions tend not to be the automatic jump to VP/Director a la banking, so I don't have that guaranteed upside every year. I get the feeling it's more of a real title jump to Head of BusDev etc., which would be huge upside. That said, I need to get more of a feel for that in the interviews. In terms of plenty of other opportunities to come, my worry is basically getting fired before one comes along (that's how dire it is in Dubai right now).
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