Staying in IB worth it?
Is it worth it to leave IB?
The hours are rough but the pay is good and compared to PE there's not a lot of skin in the game.
If I were to go to PE, it would be to a LMM / MM shop that focuses on value... so it's not like my hours would be much better.
I understand all the draws of PE and carry being the main one but if I were to assume carry never materializes (poor fund performance, I get canned, have to be at fund a long time, etc) then the desirability goes out the door. Seems like once you remove the long-shot of carry, comp compared to IB is significantly lower.
I'm in a good MM group with strong deal flow and has built a reputation in which the deal flow isn't going anywhere.
I'd rather stay in IB, grind it out, save the bonuses and then jump to something super chill and then retire early.
Am I thinking about this wrong?
I'll touch on one thing that maybe this forum has not touched on nearly as recently is stability. Sure returns might be going down, and carry will probably not be as bountiful for my generation, but I do think from a stability standpoint if you can get your foot in the door with a good PE shop, you will have some good stability.
In banking, I always found there to be more sharp elbows and a lot less predictability of staying around. Even in groups that were "preforming well". One market downturn and you might find your bank trying to lean out. Which, often puts Associates, VPs and Directors at highest risk for being cut or low bonus allocation. I am sure the same thing happens in PE, but if you can get over the associate hump stability seems to be more present for those that want to stay.
Wild because we literally have a thread filled with MF PE associates who can’t find jobs rn
Two things:
1. I address the associate hump in the last sentence. Arguably, Associates can be easily replaced, and will be replaced if the firm does not feel up to snuff. But, IF you look at say a Senior Associate+ roles It seems there is more stability in PE.
2. I have not worked at a MF, but I imagine it is much worse then banking at the associate level.
Disagree with stability because its already hard to stay in post 2 yrs as a pe associate. Better retention staying in banking
IF you are agnostic towards being an investor AND can stand banking/advisory in general (and don't ask yourself existential questions like - what am I doing with my life - not a judgmental statement but some people are more prone to this kind of thinking than others) - then yes - IB is potentially a good option. Here's a few points to explain why:
TLDR - if your goal is to literally speed-run to a financial safety-net and then chill by your mid-late 30s - hard to beat IBD. But side note - "retire early" sounds good in practice but in reality many people fall into depression once they get there - because then stare into the void of the next 50-70 years wondering wtf to do with your life. I would suggest as an alternative at least thinking about a career that fundamentally interests you - then you get to basically work and play for the next however long you choose to work
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