IB --> ER --> SM HF?
Hi all,
I am currently 8 months in as an analyst at a MM firm (HSBC/RBC/WF/BNPP) in coverage but do NO M&A (literally zero). All our work is DCM, LevFin, some ECM, and corporate banking products (we work closer with the corporate bank & DCM than the M&A team). Furthermore the product partners do 90-100% of the work. We are really just pure relationship managers that make power points. Very few people exit from my group, and I've never seen an exit to public equity buy side.
WLB is pretty good and I am able to spend substantial time making pitches and doing research. Several HF analysts and a PM have said my pitches are more than good enough, so I am not worried about building technical skills but rather my story, as I'll never have any deals to talk about. I know this is not nearly as important as my pitches, but I am worried that my lack of professional experience will put me at a disadvantage.
I have an opportunity to join a much smaller MM firm for ER. The coverage would be different but I think I'd still find it interesting. Should I take the offer, or wait longer to pivot? I feel like this will make my story much easier to sell, but could also just set me back further. Any clarity would be greatly appreciated!
If you're targeting a SM HF, my initial view would be to try and lateral to a larger investment bank with better branding to get opportunities (any BB / EB in a non ECM / DCM / LevFin group). It may mean you have to spend another year or two as a banking analyst, but it would open more doors with recruiters / network. I don't see many sell-side guys jumping to SMs but rather see them going to MMs as the more likely scenario.
Hi, thank you for your response. Do you think I should target lateralling to a better investment bank immediately, or should I wait to see if I can get into a SM HF first. Willing to go to a smaller SM HF, not targeting the large Tiger Cubs, although I do want to learn under a great PM.
I would lateral sooner rather than later. 8 months is a good amount of time to start reaching out to larger banks for opportunities. Why limit yourself to some small SM HF when you're so early in your career? Shoot for the moon and you can go downstream later on. There are not many small SMs worth joining vs. other larger more established funds. And wanting a "great PM" at a small fund is even more rarer than you'd think and maybe only hire once in a blue moon. A great PM is one in a million. Tiger cubs account for maybe like 10-15 total hedge funds? So plenty of other funds out there that would offer good training.
Thank you. You are likely right. I'd probably be better suited in the long run recruiting for a better investment banking seat than a HF seat.
Congrats on HSBC!
why not lateral to your own firm's ER division?
Its very hard to jump over the wall at my bank. My manager would know immediately due to compliance.
I think I know which bank you're referring to - interned in S&T there over the summer but definitely saw the insane compliance
If you want to go to a SM HF, please stay in IB. I cannot believe nobody has said this yet but the pipeline from ER to SM HF is basically non existent. If we are talking MM HF, then that’s a different story. IB will have far better looks for SM HF than ER. If you don’t think it’s doable from your current seat, then either lateral to a different IB seat and/or suck it up in PE for a year or so. I think it’s doable straight from IB.
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