Merchant Banking vs Investment Banking out of College. Which route is better?

There is a boutique merchant bank that regularly recruits at my college and over time I have gotten to know the employees quite well. Senior leadership is phenomenal and it seems the day to day tasks analysts get staffed on are quite similar to an i-banking analyst with added bonus of helping out on some principal investment mandates. 

I have always been told that if I want to move to the buyside, I should go through IB b/c that is the tried and true path. How come no one ever talks about merchant banking as a path to the buyside? Aren't you halfway through the door already in such a role or am i mistaken

Separately, what is a list of reputable merchant banks in the US? 

4 Comments
 

Can't speak to which path is better out of college but can provide some names of reputable merchant banks in the US

-Raine Group(TMT-Focused)

-Liontree (Media & Telecom)

-Incentrum(Healthcare)

-Tudor, Pickering, Holt (Energy, Oil & Gas)

Some firms also have merchant banking, or "corporate private equity", divisions within their bank. Some firms that come to mind are Goldman, Rothschild, and Piper Sandler. Beyond Goldman, however, I don't believe you can recruit for these groups out of undergrad

 

Thanks for sharing these firms. I know a few upperclassmen who work at Liontree and TPH but they have told me their roles are pure advisory. Do you have to recruit specifically into the principal investing arm for these types of places like you do at a Goldman, Rothschild, or Piper?

 
Most Helpful

Merchant banking will often parallel the experience you have in PE so if you're at a reputable merchant bank then yes you can continue a career on the buyside there if you like the place but you also are put in the mix for PE roles which IB analysts are considered for if you position yourself well with the recruiters. A lot banks on where you're working and the name of the shop you're at but the above mentioned a list of reputable merchant banking operations which would get you serious recruiting looks. IB at a reputable name would yes, yield you the best recruiting opportunities but speaking as someone who handled associate recruiting for my MF for two years, we definitely looked at resumes from analyst buyside backgrounds very favorably given the perceived notion that the learning curve would be much less steep

 

Quis voluptas ut voluptates ab. Natus necessitatibus consectetur nesciunt debitis aliquid. Quisquam quaerat et tempora eaque sed perferendis ipsam. Possimus et modi porro fuga ducimus consectetur maiores. Aut voluptates voluptates dicta expedita ut. Expedita soluta commodi et accusantium ab fugiat in.

Career Advancement Opportunities

June 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.1%

Overall Employee Satisfaction

June 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.2%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Starwood Capital Group 98.1%

Professional Growth Opportunities

June 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.3%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • Vista Equity Partners 98.1%

Total Avg Compensation

June 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (98) $365
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (235) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (272) $124
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (356) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
kanon's picture
kanon
99.0
4
Secyh62's picture
Secyh62
99.0
5
CompBanker's picture
CompBanker
98.9
6
GameTheory's picture
GameTheory
98.9
7
Betsy Massar's picture
Betsy Massar
98.9
8
dosk17's picture
dosk17
98.9
9
DrApeman's picture
DrApeman
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”