Obviously there are tons of people doing IB, but I see so few people above the age of say 45 doing PE, IB or PC that I wonder - where did everyone else go by the time they’re that age?
In other words, what is the end game for most people who do IB? It isn’t PE etc because statistically that’s definitely <10% who become partners, etc. Corp dev is overwhelmingly people under the age of 40, and so is private credit (it seems although I’m less familiar with this one), so really, am I the only one who wonders where did everyone go and what do they end up doing by the time they’re 50 years old?
Statistically, everyone can’t become a senior person at a fund, bank, etc so what’s the end game? Do a ton of people just burn out around 40 and do something completely different?
Where does everyone else go??
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Career Resources
Based on the most helpful WSO content, the career trajectory for those in investment banking (IB) is indeed diverse and doesn't always lead to the traditional senior roles within private equity (PE), investment banking, or private credit that many might expect. Here's a breakdown of where many end up, shedding light on the varied "end game" for professionals in this field:
Executive Directors in Banking: Not everyone climbs to the Managing Director (MD) level. A significant number find a comfortable niche as Executive Directors (ED), enjoying a good work-life balance with substantial compensation, without the added pressures that come with being an MD.
Transition to Other Sectors: Many bankers transition to roles in consulting firms, Big Four accounting firms, and private companies. These positions often offer a different set of challenges and opportunities for growth outside the high-stakes world of IB.
Corporate Roles: A large portion of former IB analysts move into corporate roles, such as corporate development, corporate strategy, or project management. These positions leverage their analytical skills and understanding of financial markets, albeit in a less intense environment compared to IB.
Entrepreneurship: Some choose the path of entrepreneurship, starting their own businesses or becoming involved in start-up ventures. This path allows for creative freedom and the potential for significant financial rewards, albeit with higher risks.
Non-Profit, Law, Family Business: A smaller percentage diverge into completely different fields such as non-profit organizations, law, or taking over family businesses. These paths reflect personal interests or commitments outside the traditional finance trajectory.
Boutique Financial Advisory Firms: Others establish or join boutique financial advisory firms, offering specialized services with a more personalized approach compared to large banks.
Serial Entrepreneurs or Advisory Roles: Some seasoned professionals become serial entrepreneurs, leveraging their vast network and experience to build or invest in multiple businesses. Others may take on advisory roles, sharing their expertise with younger companies or financial institutions.
The journey beyond mid-career in IB is highly individual, with many factors influencing one's path, including personal goals, market conditions, and life circumstances. While the allure of becoming a senior figure in PE or IB is strong, the reality is that the skills and experiences gained in IB open doors to a wide array of fulfilling careers beyond the traditional finance roles.
Sources: Where do Most Investment Banking Analysts end up?, No country for old I-bankers (starting a mid-career thread for finance professionals), 10 years in banking, tech, and consulting, Post MBA IB Career End Game?
Retirement strategy and executives are all PE exits. Some PE seniors will be asked to lead some of their acquired companies. I know of some people who work at a PE shop who take over as COO/CFO/CEO at a company under their roll up. Others leave banking/PE and go industry. By the time you’re more senior in banking you’ve built up a lot of connections who would take you in in some capacity.
I am 4 years post MBA, 31, and I’m starting to see this play out in real time. I had ~15 buddies start in banking out of college. Zero of them remain in banking. Of the 15, ~10 went into private equity, and the others went into various corporate roles or left to do MBAs and transition into corporate / tech. Of the 10 who went to PE, ~5 remain, and there’s really only one or two who I see having the stomach to stay with it for a career. Others exited to corporate roles, entrepreneurship, and one bought an HVAC company in the middle of nowhere Nebraska. Mostly everyone is happy and doing well.
From my MBA, I keep up with ~20 people who started in banking post. Probably about 50% are still in banking and of that 50%, 90% are looking to leave with varying degrees of seriousness. Job market has likely held a few people in place longer than they would have liked. Exits were much more varied here. With everything from PE, to search fund, to entrepreneurship, to corporate, to stay at home mom. I myself just left banking to get into an extremely niche industry that had nothing to do with my coverage. Mostly everyone is happy and doing well.
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