Lateraling to Middle Market IB

Thought I’d share some perspective from someone who recently lateraled to a middle market bank (Houlihan/Baird/
/HW type bank).

Coming from a smaller shop I thought I would be learning a ton and initially felt like my peers had a leg up, but have been pretty disappointed in what I’ve seen so far. Not sure if anyone else has felt the same, but thought I’d give my insights for anyone who is considering the move.

1) You’ll work more, but that does not necessarily mean closing more deals.

2) Many Analysts and Associates lack real sector/industry knowledge. I’ve had to explain basic terms/analyses to Associates and VPs. Many are great at slide creation, but lack business/operational knowledge.

3) Junior analysts lack basic critical thinking skills. I’ve noticed a big gap in knowledge in most junior analysts (perhaps due to covid). This has resulted in longer hours as you can’t rely on them to perform basic tasks

4) More resources will make your job easier, but also means many analysts/associates never develop critical skills such as NDA negotiation or reviewing an SPA. This has surprised me as many junior people in my group lack basic knowledge in this topic

5) Culture can be vastly different. Having worked at both very large and very small firms, I have experienced a big difference in culture at this bank (clicky mostly)

The job has a lot more perks, but have felt disappointed in many areas and can’t say this has been the move I had hoped for.

 

Interesting - thanks for sharing. How do you feel about technical skill set, brand name for exits, focusing more on one task instead of wearing many hats (previously juggling a broader workload)?

Is the modeling / industry research / tasks deeper and more technical?

Do you feel there is a gain by focusing on a few tasks in more detail due to more resources as opposed to juggling many?

How many hours were you working before relative to now and what is the comp difference?

Is it hard to “start over” after being trusted and being given more room and authority to move into a more hierarchical structure with less authority?

 
Most Helpful

These are all good questions.

Brand name will definitely get you good exit opportunities. I’ve seen many colleagues going into top funds and tech jobs.

Modeling complexity will depend on group, but relatively straightforward. From what I’ve seen, everyone does a market study, so they rely on third party providers for this.

I’ve felt like focusing on fewer tasks has disconnected me a bit from the process. You’re only focusing on one workstream and not being part of buyer outreach, management presentations,etc. has been a big downside in my opinion.

Comp is definitely higher and one of the main reasons I moved. Hours are consistently 8am-2am (primarily because juniors don’t pull their weight and associates/VPs mostly review)

It’s been definitely hard to start over and gain trust. Like someone said in the thread, there’s a lot of politics in a bigger place

 

Yes, left for pay bump primarily (30-50k less all in)

Also felt like I was missing out on the experience and thought I should try it before I get too old.

 

At one of the banks you listed / equivalent and I broadly agree; part of it is just because these banks are so good at what they do (churning out MM sellsides on an industrial scale) such that it’s almost like assembly line. At the end of the day the product / process when it comes to MM sellsides ($200m - $1B) is pretty consistent. Therefore at the scale of these global MM shops everything has been optimized for max efficiency; everything is templated and has been done before/has a precedent + you have all the offshore resources to further optimize the efficiency. As analyst / associate you aren’t hired to innovate, create or reinvent any wheels. You learn to do it the way it has always been done and you don’t deviate. It’s so structured it’s almost like the military. I mean even looking at performance review criteria it doesn’t cares as much about if you’re a critical thinker, it’s more so about whether you know how to do things the “right” way, run a process, stay organized and be available all the time. Also agree culture is cliquey which I hate but YMMV on that one.

That said, it’s still a great learning exp. I got to work on a lot of interesting, sizable transactions / companies, and generally developed a lot of soft skills working with C-suite and understanding how to articulate and position a business to potential investors. Modeling/technical stuff isn’t as deep as I’d imagine at a BB bank but you really learn a lot about your industry and  companies inside & out, especially qualitatively. 

 

I made a similar lateral move and echo all the points you listed. Would also like to add the following:

5) It’s very evident that politics play a much much bigger role to a person’s staffings/career than at my former bank. This applies to all levels.

6) The sheer amount of entitlement, open whining (visible and/or directly to seniors), and nonchalant push back is also something I hadn’t seen before.

I now believe this is just what banking in the “big leagues” actually looks like. Nevertheless, I’m fine with it to be honest because I was burned out at my prior bank and now everything is so much easier.

 

Iure fugiat laboriosam dolores. Ipsa corrupti autem eos dolorem iure. Excepturi est explicabo voluptates nobis voluptatem. Asperiores deserunt dolor fugit quas quos.

Dolorum sint vel autem ea velit ipsa. Magni eaque reprehenderit fuga dolores ut. Soluta rem occaecati est.

Quos qui qui deserunt quibusdam ad. Veritatis sed et natus. Officiis voluptatum et aut voluptatem ut. Voluptatem dignissimos veritatis enim quod debitis. Ipsa architecto sed voluptas illum ullam. Eaque fugit ea quo perferendis molestiae soluta voluptas omnis.

Eius quo sunt suscipit nostrum voluptates earum aliquid. Voluptatem numquam similique voluptas et nobis unde a. Quisquam minus consequuntur sunt dolores. Temporibus qui quia omnis rerum.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
kanon's picture
kanon
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”