Transition to IB in Houston - Lost Graduate
I’m a '23 grad from an Ivy and gathered a decent amount of experience before landing a buyside SA with a FT option. I took the SA but then forewent the FT as my parents’ small co took a turn for the worse and it felt selfish to leave them hanging. Instead, after graduating, I took over the “business” side of things, and it has improved significantly - margin expansion, expanded customer base and growth, appropriate employee management, etc. However, I still have the desire to come back to finance but not sure if it’s a feasible option. I’m a Houston native, and I don’t mind doing O&G banking long-term. Ideally, would want to be at one of the BBs or top boutiques. Is the only way to break back in only via an MBA? Appreciate any insight on this.
Top tier story to tell!
Based on the most helpful WSO content, breaking into investment banking (IB) in Houston, especially if you're aiming for a position at a Bulge Bracket (BB) or top boutique firm, can indeed be challenging without recent, relevant experience. However, an MBA is not the only way to break back into the industry. Here are some steps you could consider:
Leverage Your Experience: The experience you've gained managing your family's business can be quite valuable. You've demonstrated skills in margin expansion, customer base growth, and employee management. These are transferable skills that can be highlighted in your resume and during networking conversations.
Networking: This is crucial. Connect with alumni from your Ivy League school who are in the Houston IB scene. Attend industry events, reach out to professionals on LinkedIn, and consider joining finance-related groups in your area to build relationships.
Consider an MBA as a Booster: While not the only way, an MBA from a top program can provide on-campus recruiting (OCR) opportunities, which are a significant channel for IB recruitment. It can also help fill in any gaps in your finance knowledge and provide a strong network.
Look for Other Entry Points: Consider other roles that could lead to IB, such as equity research, credit analysis, or FP&A roles in firms that have IB operations. Excelling in these positions could potentially open doors within the same firm or industry.
Highlight Your Ivy League Background: Being an Ivy League graduate gives you a certain level of credibility and a potentially powerful alumni network. Use this to your advantage in your applications and networking efforts.
Tailor Your Application: When applying, make sure to tailor your resume and cover letter to highlight the most relevant experiences and skills that would be applicable to a role in IB.
Prepare for Interviews: Brush up on technical skills and be ready to discuss market trends, especially in the O&G sector, which is prominent in Houston.
Remember, while the path may not be straightforward, your unique background and determination can be compelling to potential employers. Keep honing your skills, expanding your network, and be persistent in your pursuit.
Sources: https://www.wallstreetoasis.com/forum/real-estate/full-time-mba-necessary-to-transition-to-re-with-6-years-unrelated-experience?customgpt=1, Seeking advice - Decade of experience in niche sector and laid off, Transitioning from tech to a serious finance job (yes, you read that right), Why You DON'T Leave Banking for B School Just to Come Right Back..., graduated may 2019 and recently laid off first job
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Probably MBA. It's unfortunate because you have a solid background, but there are only really two easy paths to IB, especially the top firms - undergrad and MBA.
You can get there by job hopping / lateraling around (i.e. corp finance -> boutique IB -> maybe top firm, but likely MM first), but it would take multiple moves and several years.. versus just doing one of the O&G MBAs (Rice, UT) are easy paths. I would get a FT finance job (can be FP&A or something similar) and get 1-2 years of corporate work experience, get your GMAT / application going in the meantime.
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What a great story, hope someone helps this guy out because clearly he has a great acumen and skill for this
If I were you, I would take GS/MS over somewhere like Jefferies/TPH. Not to say the latter is bad (heard they have great dealflow and strong comp) but a place like GS has the branding and similar deal reps for exits. Culture and hours are bad everywhere. You'll need an MBA for the BBs though.
Doesn’t Jefferies have great energy PE placement though? Seems like the top place in Houston
Better branding for exits.
Ignore title; in the industry. Generally speaking, IB recruiting is very process-oriented, so once you've graduated it is exponentially harder until you get your MBA. Since you want the BBs, that will definitely apply unless you get lucky and a contact gives you an in.
How would an “in” land him a process outside of structured recruiting?
Happens usually where they are more willing to hold ad-hoc recruiting based on demand and a strong internal referral. But I wouldn’t count on it.
what is " 23' "?
nice edit & MS
OP have you had any success networking with people at the BBs?
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Not in HOU but in NYC and can resonate with your story. Any leads for you so far? Can’t offer any direct help but happy to provide advice via PM.
Not the only way to get in but definitely the most high probability. Sounds like you'd have a good story for the MBA app and you know what you want to do, which helps with the admissions side of things. UT and Rice MBAs are surefire ways to land an O&G IB role.
Without the MBA, lateraling in is definitely tougher but not impossible. First, deal activity, particularly in energy, is picking up and banks have under-hired. Lateral hiring will definitely pick up. Poaching from other banks is usually how this is accomplished but in bull markets the net gets cast wider. The energy IB scene in Houston is incredibly small/tight so networking is critical to getting these kind of interviews. Think of everyone you know or your parents know and everyone from your school who ended up in banking. Spray and pray. You'll probably get grilled on technicals and model tests if you don't have a banking background, so prepare for that. But being from Houston and wanting to stay is shockingly uncommon and differentiating. Also, if you're trying to break in, keep your mind open and don't listen to the prestige whoars on this website. 99% of banking is the same across firms and getting your foot in the door is the hardest part
I’ve been prepping a lot these past few these days - BIWS, looking through all the O&G related posts on here, skimming through the primers, reading on the low nat gas prices this year and the Red Sea dynamic on oil as the US maintains its record 13bpd production. For the most advanced technicals, what material do you recommend looking at? I know O&G can get quite technical so really want to make sure I have this front as solid as possible. As for networking, how many follow-ups do you recommend? Have tried connecting with a few people but given it’s a small scene don’t want to blast every office if these intros don’t move forward. Thanks for the insight!
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