Dumb to Leave High Paying Startup to go back to IB?
Hi guys, looking to get some advice.
I did 2 years IB then 1 year PE then exited to strategic finance at a startup. I have been at the startup for 3 years now, and got promoted to senior associate. The startup is decently sweaty, I work 9am-8pm on average during the week and work often on weekends. I have no equity (whole point of joining a startup right??, they said I am too junior) but my cash comp all in is over $300k.
The hours are sweaty for a corporate exit (I understand the pay is high though) and I am starting to realize I hate working in a startup. There's just a constant fire I am racing to put out or "solve" with no resources, etc. My role itself is not incredibly difficult but it is just pure craziness all the time and I am always stressed to figure something out that has gone wrong. Pretty exhausting gig even though the hours aren't absurdly bad.
My question is I think my plan is to try to recruit for investment banking associate in DCM at like a Soc Gen, Santander, Mizuho, Citizens, Keybanc, etc. I want to do DCM at a bottom tier bank and just collect checks. I've heard DCM is pretty easy technical work and hours wise compared to coverage (which I was in). I am starting to really realize I just want an "easier" career where I can collect checks and just show up put my head down and leave. What are thoughts on this?
Based on the most helpful WSO content, your situation aligns well with the potential benefits of transitioning to DCM, especially at a lower-tier bank. Here are some key considerations:
Lifestyle and Workload in DCM:
DCM is often described as having a better work-life balance compared to coverage or M&A roles. Analysts and associates in DCM typically work fewer hours (e.g., 55-70 hours per week) with minimal weekend work. The work is more process-oriented and less modeling-intensive, which aligns with your desire for a less stressful, "easier" career. However, keep in mind that while the hours are better, the work can feel repetitive and less intellectually stimulating for some.
Compensation:
DCM compensation is generally on par with other IB groups at the junior levels, so you can expect a solid paycheck without the extreme hours of coverage or M&A. This could be a good fit if your primary goal is to "collect checks" while maintaining a more predictable schedule.
Career Progression:
DCM offers opportunities for internal mobility within the bank, such as transitioning to other IB groups or even corporate roles like treasury. However, external exits to private equity or hedge funds are rare. If you're content with staying in banking or moving to corporate roles later, DCM could be a good fit.
Cultural Fit:
Moving to a "bottom-tier" bank like Soc Gen, Santander, or KeyBanc could provide a less intense environment compared to bulge brackets. These banks often have leaner teams, which can mean more exposure to senior bankers and clients, but also less internal competition for promotions.
Your Current Situation:
While your startup role pays well, the lack of equity and constant stress seem to outweigh the financial benefits for you. If you're already feeling burned out and dislike the chaotic nature of startups, transitioning to a more structured and predictable role in DCM could provide the stability you're seeking.
Final Thoughts:
Your plan to transition to DCM at a lower-tier bank seems reasonable given your goals. However, ensure you're comfortable with the trade-offs: less prestige and fewer exit opportunities in exchange for better hours and a more predictable career path. If you're okay with these, DCM could be a great move for you.
Sources: ECM/DCM for Career Banking, BB Debt Capital Markets - Exit Opps / Comp, Hours: LevFin v DCM London, ECM/DCM for Career Banking
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