IBD vs AM?

Ah, the classic conundrum between Asset Management (AM) and Investment Banking Division (IBD)! Based on the most helpful WSO content, let's break down the key points to consider for your situation:

1. Passion vs. Long-Term Goals:

   • You've expressed a clear passion for asset management and an interest in the lifestyle and compensation it offers. Remember, if you're passionate about investing, AM could be a more fulfilling career path for you.
   • On the flip side, you're also considering the long-term financial benefits of private equity (PE), which typically become substantial later in one's career, especially when you start earning carry as a PE VP.

2. Career Trajectory and Lifestyle:

   • IBD is known for its grueling hours (80+ per week), which can lead to burnout. It's a high-stress environment with a steep learning curve, but it can be incredibly rewarding in terms of skill development and exit opportunities.
   • AM offers a more balanced lifestyle, with 40-60 hour weeks and more personal time. It's a career that allows for deep dives into investing, and while it may not offer the same explosive earning potential as PE in the long run, top performers can still earn impressive salaries.

3. Skill Transferability:

   • It's true that skills in AM are specialized, and transitioning to IBD after many years might be challenging. However, finance skills are often transferable with the right narrative and networking.
   • IBD provides a broad skill set that can be leveraged into various roles in finance, including PE, hedge funds, and venture capital.

4. Breaking Into the Field:

   • Given your background and the pipeline from your university to the Big 4, starting in audit and moving to Transaction Advisory Services (TAS) could be a viable path towards IBD and eventually PE.
   • For AM, demonstrating a passion for investing is crucial. You might want to start cultivating your investing knowledge now, perhaps by reading recommended books like "The Intelligent Investor" by Ben Graham.

5. Long-Term Satisfaction:

   • You've mentioned the possibility of getting bored in AM after 10-15 years. It's important to consider whether you're looking for a career that will keep you engaged and challenged over the long term.

Given these points, it seems like your decision hinges on whether you prioritize immediate passion and work-life balance (AM) or long-term financial goals and career versatility (IBD to PE). It's a tough choice, but remember, careers are long and often non-linear. Many finance professionals pivot at various stages, so neither path is set in stone.

Ultimately, the decision should align with your personal goals, values, and the kind of work that excites you. If you're still torn, consider seeking out mentors in both fields and ask for informational interviews to gain deeper insights into each career path. Good luck!

Sources: Asset Management vs Investment Banking 101, Why Work in Asset Management?, Asset Management vs Investment Banking for exit opps into value-based hedge funds, Asset Management exit options vs Investment Banking

Based on the most helpful WSO content, it seems you're at a crossroads between pursuing a career in Investment Banking (IB) and Asset Management (AM). Here's a breakdown to help you weigh your options:

Investment Banking (IB): - Path: The typical path you've outlined, from audit to Transaction Advisory Services (TAS), then M&A with an MBA, is a well-trodden route to IB. However, breaking into IB directly from a non-target school can be challenging, but not impossible, especially with a strong network and relevant experience. - Work: IB is known for its intense workload, often requiring long hours (80+ per week). It's a grind, but it can be rewarding. - Compensation: Initially, the pay may not be as high as in AM, but the long-term earning potential, especially with carry in PE, can be substantial. - Exit Opportunities: IB offers diverse exit opportunities, including PE, hedge funds, venture capital, and business school. It's known for high turnover due to burnout. - Skills: The skills you acquire in IB are transferable to many other areas in finance, providing flexibility in your career.

Asset Management (AM): - Passion: If you're passionate about investing, AM could be a fulfilling career. It's important to pursue a career that interests you, as this will likely lead to greater satisfaction and success. - Lifestyle: AM typically offers a better work-life balance than IB, with a 40-60 hour work week and more personal time. - Compensation: While AM may offer a high salary, especially for top performers, the long-term earning potential might not match that of a PE professional with carry. - Exit Opportunities: In AM, exit opportunities after a few years typically include pursuing an MBA or CFA, moving to a larger fund, or transitioning to a hedge fund. - Skills: The skills in AM are specialized. While they may not be as broadly transferable as those in IB, they are highly valued within the investment community.

Given your passion for AM and the importance you place on lifestyle and compensation, AM could be a strong fit for you. However, consider the long-term career trajectory and whether you might want the broader exit opportunities that IB offers. Remember, it's also possible to transition from IB to AM, but the reverse can be more challenging.

Ultimately, the decision should be based on which path aligns more with your personal goals, values, and interests. It's a significant decision, so take the time to reflect on what you want out of your career in the long term. Networking with professionals in both fields could provide additional insights to inform your choice.

Sources: Asset Management vs Investment Banking 101, Why Work in Asset Management?, Asset Management vs Investment Banking for exit opps into value-based hedge funds, Asset Management exit options vs Investment Banking