Everyone talks at length about trying to transition to PE or HF after 2 yr BB analyst stint. How common and or difficult is to just stay at BB? Does this differ by divisions (including AM, S&T, ER, etc), and if so, how for each one? Also, would this be possible without an MBA, as one would just move linearly at the same BB? Are people generally forced out, or is it a result of choice (better pay or lifestyle in other places)? Thanks for insight
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Was never an analyst, but can say that even post-MBA only 1 of 5 associates will become an MD and that's ~8 years. So to answer your question it's hard.
The job is miserable hours wise so maintaining a life outside work with your significant other and friends is hard. Around the VP level is when it becomes clear who will stick around and who will leave because at the end of the day banking is a sales job and everyone seems to hate sales. Covid is a unique circumstance, but junior bankers just churn out the technical work so you're merely a cog in the wheel. I think it takes some major screw ups to be pushed out of IB.
I would guess that 95%+ of people in IB are using banking as a platform to another role with a much improved lifestyle.
I'm looking to pay down my business school debt, learn as much as I can about how to present complex information and then pursue a role in a different industry where I have more autonomy and do something I'm passionate about.
Also, not all analysts in my observation just go to PE. Some go corporate, to startups, start their own companies, or even go to government and non-profits. Sure sometimes you have to pay your dues at a job you don't love (usually for financial reasons), but whenever possible always do what you're interested in life!
Best of luck!
would it be possible to be a VP in IB in about 7 years (considering the person starts as an analyst after MSF at the age of 23?)
Depending on bank; 2 – 3 years as an analyst plus 3 – 4 years as an associate. Unless you're a true outlier, 7 years to VP is quite normal.
Know quite a few analysts at all types of banks that have been fired or laid off just because they were near the bottom of their analyst class. Nothing particularly wrong with them but just not doing well compared to their peers. Many of them are now Associates at top-tier BBs or in PE UMM or in some cases, top tier grad schools
Worst part is everyone around them knows why they're leaving most of the times, not because of the work they do but because they already hate their job and expressed it before.
Sometimes, the job just isn't a perfect match for them, ya know?
Is it rare for current Analysts/Associates to get an MBA and come back? If so, do you get promoted to VP/D quicker?
It's definitely very unusual to start as an IB analyst, get an MBA and return to IB.
The entire point of getting an MBA is to pivot careers, not return to your old gig.
There are maybe one or two firms that will pay for your MBA (like Baird), but I'd be skeptical of returning to IB. Again the hours are a killer, if you loved the job to begin with it makes more sense not to leave and lose out on 2 years of salary. And again the number of analysts that even stick around for a third year is so low ~5%.
There's literally a whole post about why shouldn't get an MBA just to return to IB: https://www.wallstreetoasis.com/forums/why-you-dont-leave-banking-for-b…
My thinking with hypothetical questions is just 100% put your energy into getting the role first and absolutely crush it. Keep an eye out for what you like and don't like. Remember to be honest with yourself about whether you like the role or not.
Us random internet strangers can only offer so much (and it's always biased based on our experience so you should take everything with a grain of salt), so focus on what you can control: working super hard, a good attitude and staying honest with yourself.
Good luck!
"And again the number of analysts that even stick around for a third year is so low ~5%."
Can say at all the banks I know that this is a much higher number. Not everyone gets the PE offer or what they want out of their two years and thinkit's easier to just coast as a third year.
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