UK: IB Career Banker vs BigLaw Partner
I know this is a frequent question from the US members of this forum but I was wondering what the UK contingent think about this question.
I've accrued experiences in both Investment Banking (BB spring week/internship at a boutique outfit) and Corporate Law (schemes at Magic Circle & US firms). I've met plenty of former M&A lawyers, now bankers advising me to go straight into IB. One Associate at LAZ/ROTH/EVR - previously a magic circle M&A/PE lawyer on the partner track - told me that he would've gone straight into IB if he could turn back time.
I find myself at the crossroads right now. I'm proficient with numbers and letters; I don't necessarily find one more appealing than the other. I wouldn't mind being a career banker or a law partner because I can work my a$$ off and frankly, enjoy the grind (lol). I'm a people person, so I see myself enjoy interacting and working with clients, which IB seems to offer more in the MD level rather than BigLaw partner level? I don't think the "do what you enjoy most" applies to me because I find both IB & biglaw has its pros & cons, which balances out in the end (for me personally).
I think the main opposition argument for the US edition of this question is the opportunity cost of going to law school for a JD. The major gamechanger to the question here in the UK is that if I secured a training contract, the law firm would cover my law conversion, so that's a major financial obstacle out of the way! Also, another solid pro I can think of biglaw is the job security...
Would be really interested to hear from UK WSO'ers and from former lawyers who are now bankers on the forum.
because in UK there is no opportunity cost in going to law school, you can freely assess the career based on how much you would enjoy working on what each field has to offer. As an European who studied law (not an MD, ignore my title, it's for the lolz), I'll also advise you to go IB. The work done in corporate law is more boring that what you may do in IB.
If you want a taste of each field, go to Forage. There are simulations on corporate law and IB type of work.
Also, read a comment that I left somewhere elseabout my experience/observations about corporate law and why it may suck: https://www.wallstreetoasis.com/forum/other/dont-you-fucking-dare
one last point, especially for UK, weren't you aware that some magic circle law firms have recruitment policies where they recruit people that didn't even studied law? in UK studying law may not even be necessary to work in a law firm (but clearly they will have harder time passing the bar exams/advancing without adequate legal expertise), so if you're in high scool just focus on getting in the best school that you can because this may be the most important thing in determining how good you'll do in recruitment, be it law or IB.
You can make far, far more money in Big Law as an equity partner at the right firm…but if you don’t get into one of those few elite with specific partnership structures then you’re better off in banking as far as money goes.
now if you do make it into one of those, you’re going to be a multimillionaire in your low 30s.
hard to assess which is more interesting, I liked m&a personally. My old out of college roommate loves his area in big law (and being loaded). M&A hours were bad, but his hours are extremely bad - 4 am nights are a few times a week occurrence in his life.
Not really because it's not an apples to oranges comparison. The finance equivalent of elite US law firm partner is PJT/CVP/EVR MD or UMM/MF PE Partner, of which is comparable compensation with much higher tail outcomes when taking into account PE partner comp
If you can show me an example at those firms making $3mm by 30-31 then I’ll recant, otherwise going to disagree as have not heard that being the case from those firms.
like I said - I’m talking about very specific partnership structure equity partners, not K&E fake partners or Mayer brown 12 years to partner. The elite shops are 7-8 years to partner and don’t have partnership agreements so you’re getting a direct deposit of $3-5mm your first year as a partner.
This is just not correct at all. By the time you are actually starting work you are starting work you are at least 24/25(1 years GDL 1 year LPC). Once you start you still need another 2 years before you are qualified - so you are around 27 by this stage. From here if there is basically no chance you are making partner without at least 7 years as an NQ. This already implies you are one of the lucky few who make it into partner track (which 95% of the people who start at TC will not be, even lower chances at US firms in UK).
Hypothetically at this stage if you are in a magic circle law firm and you are a damn good junior partner you are making definitely sub £1mill unless your a PE lawyer. After 2-3 years as a top performer you become equity partner. So right now you are late 30s early 40s and you are finally getting that ownership stake but even here you arnt making the big bucks.
Law equity partner comp scales with your partner points which increases on a yearly basis. You arnt gonna be making multimillion a year until your mid forties in the fortunate scenario you are at a magic circle firm, billing a huge amount, managing multiple large ticket client relations for the entire firm. Law in the UK has the potential to make very high salaries, but 99% of corp lawyers don’t make it there. A lot easier to make the big bucks in banking.
Source - come from a family in UK big law and roommates are trainees in big law.
lol go look up wachtell new partners and look at their ages
I don’t need to prove this, LinkedIn can do it
source: wachtell new partner
I considered both and also planning to stick in for the long haul, and personally preferred finance due to:
A) much more optionality. Can recruit for PE/HFs etc or leave to other industries a lot easier if I don't see a career in banking. If I don't like big law and like money I would be screwed as in house comp especially in the UK is trash.
B) PE/HF has higher tail outcomes of compensation than big law (very unlikely that I'll get anywhere like that I know but I prefer to think big)
C) from what I've read it appears that M&A lawyers get told what to do by bankers who get told what to do by PE partners.
D) work in finance seems more interesting to me vs law, and role seems more important to the deal process. I'd rather be running or facilitating the deal vs working on the legal aspects of it.
E) progression to banking MD seems easier than law. On the buyside probably similar difficulty.
F) opportunity cost of law conversion and low trainee solicitor comp
G) seems like outside of the US firms, comp progression is not that good
H) worse international mobility to countries like US
Many thanks for your reply. I was just wondering what you thought about the relative job security factor between finance and biglaw? For me, as a pretty risk-averse person, that is the one appealing thing about biglaw.
You really have to think 10 years into the future and which field will be greater impacted by AI
Ai will impact both significantly but personally I see a greater impact in the legal field.
Consider if you want to start your own business, easier to start a law firm then an M&A consulting practice
Consider if you want to move abroad, M&A means you can move to continental Europe/Middle East
Comp wise I’d probably go Big Law+job security big law
if one ultimately pursues finance, is the law degree and all the subject matter learned - essentially - "useless" ? As in, you don't realllly gain much by having the legal knowledge if you're some deal maker or investor (excl. distressed etc.)
Approach your decision like this: if someone mocked you and said “law school is for people that picked the wrong college major,” how would you react? Act accordingly!
ICYMI—> pick banking
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