How to avoid getting an MBA
I am starting my career in investment banking and I am trying to think through the choices I have if I want to avoid doing an MBA in order to progress through the ranks.
Investment Banking:
- Kick major butt, get 3rd year off then associate offer. Chances: 5% off class.
- Kick major butt, no offer, move to Boutique or MM as associate. Chances: no idea.
Private Equity:
- Pre-MBA associate at largest fund possible. Expected to do MBA after 2 years, but decide to move to a smaller fund in a post-MBA equivalent position.
Hedge Fund:
- Don't know much, but heard that MBA is not very necessary.
What do you think?
Good Question, just curious though.. why are you trying to avoid a MBA? no added value in your opinion?
I'm just finishing my third year and turned down an associate offer. Trust me, after a certain amount of time in banking you will re-think you future...
Don't try to plan SO far in advance.
Ditto. I turned down the opportunity to get promoted to associate because banking's a terrible long-term career (you'll realize this after a few years as an analyst).
If you're smart, you'll figure out how to make much more money with a much better lifestyle.
Plenty of reasons: - Don't consider my chances of getting in very good - Dont' want to lose another 2 years - Hate going to school - Value/Cost tradeoff - Not looking to switch careers
Your academic pedigree really can kick in when your a senior person, more specifically when you try to raise funds. If you've done your undergrad at a ivy or target you should be fine. If not an MBA from a H/S/W can help with any glass ceilings.
I went to a target for undergrad. Great network and everything. I don't see how I can expand my network by going to another great school. I believe that its not the relationships that you build in B-School that are important down the road, but the people that you can reach through that network. I do have access to that network.
To me it doesn't make sense to do 2 years as an analyst go to B-School and come back as an associate. Its just weird to me. I have seen plenty of senior people in banking that don't have MBA's.
If I get in to HBS i might reconsider, but as of right now I don't see the value. I listened to Damodaran's MBA Corporate Finance classes and the only areas where i am learning new stuff is in corporate governance. Hence, I don't see the academic value of it. Why would I pay for the network? I am sure non of you guys pay for friendships. I am positive that I can build up a decent network without having that MBA title.
Are there any people that can comment on how to make it happen in the three career tracks that I outlined above.
I think you're thinking about it the right way, and as madgames said, you may reconsider after some years of experience. You've outlined ways to avoid doing an MBA and stay in professions that interest you. The real question is the longer term tradeoffs. The value of the MBA is largely tied to making successful career transitions into competitive fields, and the relationships you build that can pay HUGE dividends over the course of your career. You are also likely to earn more over your lifetime with an MBA, but that may not hold true if you can make the promotion leaps without the mba degree.
You don't have an interest now in a career transition, but the relationships and alumni network can be of huge value even if you stay in finance. That's hard to quantify, but can be a big asset.
Is the MBA the right next step for you? Three Things to Consider - http://bit.ly/5NEwc
Apply to the AlumniAthlete Wall Street Internship Program bit.ly/oCbfn
Gotta Mentor www.GottaMentor.com Connect to the Advice & People You Need to Achieve Your Career Goals
How about the CFA?
Answer: Move to London. Automatic promotion after 3 years*.
Then, if you feel like it, move to the US.
You may want to scrap the IB/PE route. You can start out in equity research or trading and move up without an mba (will likely need cfa in ER). Both afford opportunities for hf, albeit in different roles.
Even a smaller PE shop is likely to be stocked with top 5 mba types.
So an MBA is required at the megafunds after 2 years? (Blackstone, TPG, etc.) They pretty much kick you out and then guarantee your job for afterwards? Do they pay for it at least? I wonder if the MBA is more for the networking experience as I doubt the classwork is all that valuable for people already in finance.
I'd say it's pretty difficult to plan before you even begin working. I know everyone is different, but I felt the same way pre-banking. Do whatever I can do to avoid an MBA (but keep the appropriate career path). Well, it has been just a little over five months, and unless something changes drastically, b-school is no longer an "if," but a "when." There are essentially two primary reasons for this: (1) I didn't attend an ultra-elite undergrad, and I've seen how far an elite name can take you (my idiot MDs all rake in cash because of their business schools despite being morons). Assuming my stats and background get me into a H/S/W, which I assume they would, it would make sense for me to do it; and more importantly, (2) I CANNOT WAIT to go back to school - it's like vacation. I can't tell you how much I miss going to class for 2-3 hours a day, doing some work, going to the gym, and eating dinner all between the hours of 10am and 5pm. Get hammered on the weekends, have fun, all that great stuff. There's an amazing difference - bschool may not be the same as undergrad, but it'll definitely be like a two year vacation. I told my girlfriend the other day (who is a senior at my alma mater) how lucky she is to still be in school - this coming from someone who could not wait to get into the working world and make cash.
Priorities (and goals) will change, especially once you get a real taste of the real world. Don't try and plan your life today before you even know what it's like. Good to think about it a bit, but don't etch anything in stone.
I think at your absolutely right. You've got the target network already. If you don't need it, why do it? At the end of your analyst stint and you move into a big fund, a while your buddies are getting into debt for two years, if you show potential to be a hitter you could possibly become a principal by the time they're just getting out.
Atque aut impedit dolor aut quaerat quia. Omnis in aut cum vero. Nostrum voluptas repudiandae eum corrupti. Blanditiis sit impedit consequuntur et non odio.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...