My view on cash equities in Europe

Having been an active participant here for years, I wanted to give back by sharing my experience with the cash equities industry in London and Continental Europe.

A bit about my background: I spent three years (2020-2023) in the industry. After university, I joined the graduate scheme of a MM bank in London, where I rotated through various roles in the equities business (Equity Capital Markets, Equity Research, Equity Sales) for a year.

Subsequently, I moved  to a SS ER  position at a LMM bank in my home country (Cont Europe) for two years. Now to my experience with the equities industry in Europe:

• Equity Sales: DEAD END, particularly in Continental Europe. Many juniors who start their careers in equity sales often lack a solid background and seem to have stumbled into the role. There are almost no exit opportunities, Ive seen only a handful of solid exits which included PE/VC fundraising or AM  sales. Equity Sales to Investor Relations is difficult, as these positions are typically filled by former Equity Research professionals. Most common exit is probably leaving the industry, as the remaining equity sales positions are rare. I would strongly advise against pursuing a career in cash equity sales.
• Equity Research: Compared to the US, there is significantly less money in European markets, leading juniors to take on coverage responsibilities earlier in their careers (a common practice across European banks). However, individuals in Equity Research generally possess higher credentials and caliber than their counterparts in Equity Sales. This is evident in the range of exit opportunities, with former Equity Research analysts transitioning to roles in Hedge Funds/Long only (both mostly in London) and Corporate Development or Investor Relations. While I would caution against a long-term career in Sell-Side Equity Research due to industry structural decline and fee pressure (IB makes signficantly more as you get more senior) it can serve as a ok starting point with exit opportunities similar to those in MM IB, I personally interviewed with LMM PE, VC, AM and IR positions
• Equity Capital Markets: ECM offers the highest compensation among the three sectors mentioned, but like Equity Research and Sales, it is affected by the structurally weak public markets in Europe. Interestingly, many in my peer group exited to M&A groups before exploring other options such as Private Equity, Corporate Development, or Venture Capital. I would personally always go for ECM rather than research and leave equity sales completely out

In hindsight, particularly focusing on Continental Europe, I would have opted for Investment Banking, something in FICC, or aimed for a direct entry into a Public Investing role.

Fortunately, I was able to break into the investment team of a billionaire's single-family office, which I enjoy and I plan on continue riding the family office wave