A response to Dick and Not anonymous
Hi all,
I'm posting this to add some balance to this forum. I've been in the industry longer than both of the people mentioned in the title, have likely worked at more firms, and am a covering analyst (happy to confirm my identity to WSO if warranted). Both are the definition of the fox and the grapes; sorry that your experience in ER was shitty, but it doesn't mean everyone's will be or that there's no such thing as a value-add note. The industry has declined due to pressures like MiFID, but there will realistically always be a place for ER.
Now, we can address Not anonymous's post point by point:
- Exit opps: To say it's 5% of IB is completely unrealistic. I've seen people go LO, HF, PE, corporate, and consulting all with relative ease. The one caveat here is that if you go boutique, it can be harder to go out of public equities since people don't recognize the firm.
- Comp: At BBs, it will lag given the bonus structure typically isn't as favorable, although it has been trending up as the market for associates become tighter and tighter, at least for people with experience. At boutiques, where there's less structure around comp, it's more laissez faire.
- No career development: Maybe you just weren't very good? It's analyst-dependent, but if you can prove your worth, the majority of good analysts will give you leeway to drive research, interact with clients and sales, and spearhead relationships with companies. All three can help to develop your career. Also, Not anonymous was in ER for 2 years... they would have just been finishing up an analyst banking stint, so not sure how much development would have been seen in that time either.
- Boredom: Again analyst-specific to an extent, depending on what their style is, but there is always more to learn from company-specific to sector-specific to macro. If you only publish on corporate actions, then sure it can get boring, but I don't know of anyone that does that, or publishes on a dividend raise?
- Loneliness: Maybe you're just not that sociable or likable? Across the Street, there's a push for cross-sector research given client demand and appetite, so the likelihood of you not interacting with other teams is close to zero. Also, I've never felt a lack of camaraderie? We all go through earnings and fire drills with early and late night news. This really sounds like a you problem, if I'm being honest.
Overall, this is a forum used a lot by college students to figure out their own career paths. It's disingenuous to represent it only by earnings days or give a "warning" when you only had a short stint. Hence, this post.
P.S. Dick, I find it odd you base your online persona on an industry you left that you clearly have such disdain for. Move on dude
Look forward to the slapfight in the comments
I’ve only summered in ER so not alot of authority on the topic... but some of my friends who lateralled from one bank to another or bank to boutique in ER are being paid well more than me now, and almost in line with banking. this is for a lateral around the senior associate/VP-level.
it seems that staying sort of limits your bonuses.
Yep, like I said, the market is tight, especially for experienced associates. The best way to get paid in ER or advance title is to jump around, even at BBs, you can typically skip a few rungs on an otherwise rigid ladder
Good for you.
Not sure I agree with the tone in which this was written, but I agree with the perspective and general content/takeway about the job.
Unless you work for a highly ranked II analyst, do not go into research. The point of working for a II ranked analyst (1,2, or 3) is to gain exposure to how they think about stocks and their industry, which should be used to get as fast as possible to the buyside. In terms of pay, it is massively lower than investment banking, hours are horrible during earnings season, and you wont be getting exposure to different and complex financial scenarios like you do in IBD. But in terms of connecting with sales (who have great links to buyside), and actually meeting buysiders and completing various client requests, you can really be useful to the buyside and it will be much easier to get a job there. Top shops are (JPM, Evercore, Wolfe, UBS, etc.)
The job is really what you make of it, I've worked for everything from a #1 analyst to someone near the bottom. I've never had trouble getting looks from funds
Have worked for a top ranked analyst at one of the firms you just listed and am now a lead at another one. You could not be more wrong Mr. 1st year IB analyst. Working for a top II analyst doesnt necessarily translate into more buyside looks. One example - number 1 ranked II analyst at one of those firms you mentioned is only known for corp access/IB generation and does not have a strong reputation in terms of fundamental research. On the other hand I worked for another not top 10 analyst earlier in my career who was a brilliant fundamentals analyst with minimal IB/corp access shilling and there were constantly looks from buyside shops. You have no idea what you're talking about. Doors will open wherever you are as long as you're not an idiot, have some direct client exposure, and work for a shop with a decent platform.
"...Exposure to different and complex financial scenarios like you do in IBD" - my guy, chill out, you're a 1st year analyst grinding out PowerPoint decks with the proper company logo.
I find it comical how Dick acts like an arrogant "expert" on research broadly when he's really just the most vocal account - similar to how a lot of folks view sell-side ER, without the commercialism. Half the time I see him giving a "bad question...don't have time for this" kind of response to probably some college kid just looking to learn, or saying something like "I won't endorse any ____ course/product for free"...seriously, who does he think he is? If only he understood that anyone with a few years experience on the Street could do a better job just by being a somewhat normal/humble person. Sure, no one else has yet, but it's just a matter of time LOL.
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