Need Guidance
I am a sophomore about to begin investment banking SA recruitment. I don't really have a passion for IB (who does) but rather have a deep passion for equities. I'm pursuing IB because I feel like if I pay my dues for 2 years I can exit into HF/VC/GE shit that I actually like but now I'm wondering if it is worth it. I'm confident I can place fairly well at a decent BB (Citi/BAML/Barclays) but as I get older I'm realizing I might be pursuing IB for the wrong reasons.
Is IB the best way to break into HF/VC/GE or is there a better path? Do any decent firms recruit undergrads?
It’s a good path, but you could make an argument for equity research as well. If you’re not that passionate about IB it’s going to be harder than you think. I know a bunch of colleagues that went BB equity research to large HF/VCs, and I also know bankers that did the same.
Glad you're thinking about this now and figuring it out before you start your career path! So there's a few ways to look at this but my two most important metrics are
1) Will I enjoy the day-to-day of the job for a considerable amount of time (2 years)
2) What are the exit opportunities for me and how does that align with my current goals.
I did an internship in both ER and IB and quickly realized that equities were not my passion at all. I much preferred private investing so right now I'm targeting GE after my stint. Another intern in my class loved what we did and he's returning FT.
For your purposes, if you know you have a "deep passion" for equity investing, then I would shoot to take an IB internship this summer. Then when FT recruiting comes around you can make a formal decision regarding whether you want to switch to ER or stay in banking. In my experience it's much easier to go from IB --> ER than the other way around. You could always try to recruit buy-side straight out of college as well but it's exceptionally hard. Also HF/VC/GE all have very different roles and responsibilities. I would try to shortlist which is your #1 #2 and #3 and then make your decision on that. ER lets you break into HF without too much trouble while IB lets you break into GE and HF. VC is kind of weird because of the nature of the business, but if you're a top IB tech shop you shouldn't have much trouble getting in there as well.
TLDR: If you can manage IB (which you should be able to if it's a 10 week SA), do it because it gives you more optionality . If you don't and you also love equities, then go through ER. Consulting is a good choice as well if you like that type of work and want to do buy-side in the future - don't know anyone who's gone to a HF from consulting though.
It was kind of a scattered response but hope that helped. Let me know if you have any other questions.
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