Investor Relations
Hi everybody, I am looking to pursue a career in investor relations. When is the best time to join, should I try to get an analyst job out of school or should I do banking for two years and then switch? Also when you are in IR are you able to switch across sectors, could I move from an IR position at a REPE fund to an IR position at a Corporate PE fund? Thanks
Based on previous WSO threads, here are some insights on pursuing a career in Investor Relations (IR):
Best Time to Join IR:
Switching Across Sectors:
Additional Considerations:
For more detailed advice and personal experiences, you might want to explore specific threads on WSO related to IR careers.
Sources: Thoughts on Investor Relations? A good or bad move?, IB to IR, Exit-Ops: Equity Research vs. Investment Banking - (A Definitive Guide, Part 2), Equity Research: Wall Street's Best Kept Secret, The right time to lateral?
Typically, in-house PE firms do not hire Investor Relation professionals directly out of undergrad. We've seen and hired a lot of folks who have done a few years of IBD first (or start in-house private placement at a bank like PJT, UBS, etc.) before making the pivot.
There's plenty of transferability within IR that you likely wouldn't be limited to changing sectors (e.g. moving from a tech PE firm to an Industrials shop). I've seen more challenges moving from vanilla PE IR to REPE IR as the latter typically prefers candidates with demonstrated RE experience or interest.
hi, you seem knowledgeable about the IR career path. Could you share more information on the comp trajectory? also, at what level would one join from other levels in other industries (e.g. if a vp in IB/PE decides to switch careers into IR, they wouldn't need to start at the asso level, i hope)?
Comp trajectory can be extremely varied depending on what firm or in-house IR role you land. Heidrick & Struggles has a report, “2023 North American Alternative Asset Management Marketing and Investor Relations Professional Compensation Survey” that’s free that you can explore. It’s focused on more senior-level roles but should be helpful. Most VP IR folks will receive carry which is when your comp really starts to take off.
Most IR folks (assuming you did a few years of banking) would join on as an Associate. There are a few MFs where you might start off as an Analyst (1.5 - 2 years) before getting promoted. Compensation as a 1st Year IR Associate might be anywhere from $125K - $225K (very firm dependent).
I'm considering a moving to a buy-side IR role in at a large international banking group. Do you think it's feasible moving from corporate IR to PE IR further down the line or are they considered completely different disciplines ?
Considered very different disciplines with marginal transferability (in my opinion, though others may disagree). Corporate IR is dealing with equity research analysts and helping prepare the C-Suite for earnings calls whereas in-house PE IR is dealing directly with limited partners, completing diligence requests on the fund and helping raise capital. Both have quarterly reporting cycles and working with senior management but pay, career trajectory and lifestyle are quite different.
Thanks - that's really helpful.
Would you say IR in a Bank is considered a front office function ? I assume PE IR pays more, but are there god prospects doing IR in banking?
If you want to be shit on by everyone is alternatives, go into Ir
If you want to be compensated well beneath your peers, go into Ir
If you want zero control over your professional career, go into Ir
If you want to spend your life on the road, away from your children and home, go into Ir
It is a loveless pursuit. There is very little longevity. If you have literally any other options: operations, portco positions… literally ANYTHING but IR, take it.
As someone who actually built a very successful career in IR, I don’t think I’ve ever seen a more inaccurate comment on this app…
Sounds like someone works at Veritas. Sorry man.
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