Moving shops after a year
I am an analyst with 1 YOE at a middle market firm in the southeast. I don’t particularly enjoy the culture at my firm, and I know this isn’t the most important at my level, but my bonus and raise were below my expectations this past review cycle and I think my pay is below market. What are people’s thoughts on moving shops with just 1 YOE to another shop as at analyst role but with higher pay and a role I’d enjoy more in terms of responsibilities, asset class, etc? Should I stick it out another year or 2 and move as an associate instead?
Based on the most helpful WSO content, moving shops after just 1 year as an analyst can be a tricky decision. Here are some key considerations:
Reputation and Perception: Jumping ship after only one year might raise red flags for future employers. It could signal a lack of commitment or suggest that you might leave quickly again. This could impact your ability to build goodwill and trust at your next firm.
Burning Bridges: Leaving early might burn bridges with your current firm, which could be problematic if you need references or connections down the line. Additionally, the relationships and reputation you've built so far may not carry over to the new role.
Pay and Responsibilities: While higher pay and better responsibilities are valid reasons to consider a move, it's worth evaluating whether the long-term benefits outweigh the potential risks of being seen as a "job hopper."
Timing for Associate-Level Moves: Many WSO threads suggest that sticking it out for at least two years as an analyst can provide a stronger foundation for lateraling or moving to an associate role. This approach allows you to gain more experience, build a track record, and potentially make a smoother transition.
Alternative Strategies: If the culture and pay are significant concerns, consider networking internally or externally to explore opportunities discreetly. You could also use this time to strengthen your skills and position yourself for a more strategic move in the future.
Ultimately, if the current role is unbearable and the new opportunity is significantly better in terms of pay, culture, and career trajectory, it might be worth the risk. However, if you can tolerate your current situation for another year or two, you may find yourself in a stronger position to make a move with less downside.
Sources: Advice for New Analysts Seeking PE Exits, Exit opps from AM?, Stuck at Current Firm, Analyst at 27 or head to B school?, A2A - what has been your experience ?
I think as long as you’ve passed the year mark then it’s fine to jump. Just make sure it’s a step forward or lateral move from a resume standpoint. If not, then I’d say tough it out until something better comes along.
I've done it and no one ever questioned it. However echoing what the person above said, make sure it is a lateral or forward progression for your career.
How would you classify a lateral move? It would be going from a larger more traditional REPE shop to an operator (similar AUM though) so may be considered lower tier from that respect but aligns more with my interests and ultimate goal of being closer to the real estate
Only you know what you want out of your career, so if you think this move will get you closer to your goals, then by all means go for it.
But lateral move is just that, a lateral movement - not taking a step back in terms of scope, duties, and responsibilities (and to a lesser extent, title but that's largely irrelevant in RE)
Thank you!
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