Associate at boutique vs analyst at GS/MS
I'm a third year IBD analyst at a low tier / small cap boutique, I've been given the promotion to associate effective this summer. Pay here is fine, a slight deduction from BB pay, but we have a great work life balance so on a per hour basis we earn more than BB and EBs.
I ended up receiving a graduate offer to join (GS/MS) as a IBD Analyst 1 starting a similar time to my associate promotion here and I'm unsure what to do. I tried negotiating coming in as an A2 or A3 but they got angry and said if I wasn't comfortable starting as a grad again, I shouldn't have applied, which is a fair point.
The things that come to mind initially are:
Negatives:
- huge pay decrease, first year associates at my boutique earn PS120k + total comp where as first year analysts at BBs in London make about PS75k total comp (excluding sign on) so I'll effectively be taking a PS45k pay cut. I have a mortgage so this isn't ideal but it's still manageable
- starting my career again from the beginning (I'll probably be older than the associates there)
- I turn 27 this year so by the time I make associate if I take the BB offer I will be 30/31
- brutal hours, the team is very intense so I will have no life
Positives:
- more interesting work and less boring crap (being at a boutique you often do all the admin and compliance work yourself which sucks!)
- bigger more exciting deals
- better exit opportunities!
- better learning
- create new friends
- the GS/MS brand, I.e opportunities to travel internationally within the firm later down the line
Would appreciate any advice and thoughts I don't have long to decide. Thank you
Or by the time you are 30/31 you could make it to VP of your boutique instead of starting it over... Just my 5 cents
Agreed, very good point.
Although I’m still undecided whether I want to be a career banker long term or move into HF/PE or explore other exit ops the GS/MS brand could offer
You could always take e.g. GS, do a year, then lateral to an associate role at another top BB / EB. That way you get the brand but lose less time...
Moving to London and working at GS/MS is going to do far more for your career, both in skill set and opportunities that will be presented to you, than staying at a small no-name boutique as an associate. The short term pay and lifestyle hit suck, but they are just that, short term. And the quantum of money in the grand scheme of your career earnings in finance is not a lot. Remember, you don’t do this job for the opportunities it presents you at 27, you should be doing it for the opportunities it presents you later in life.
Personally, I see it as a trade off between being short term better off and being long term better off, which should be an easy choice.
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