Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
Im pretty sure equity sales was unstable as a career option like a year ago before any crisis- due to automation and low value that equity sales adds.
Yeah but a lot of cuts already been made due to mifid II so if one of the few to join with v limited headcount then arguably in a good position? Believe VC can also be very unstable...question is which is the better long term bet (my thoughts are maybe equity sales more secure midish salary but VC could be low or very high, much more range given the nature of the beast)
I feel like the skill sets are so different that you would need to know where you want to end up in your career. In VC you will most likely be gaining valuable valuation skills and understanding business fundamentals, and in equity sales you are primarily speaking with very large institutional clients reading off one a one page sheet that the equity research team supplies you- its a comfortable gig Ill give you that but I dont think you gain as much in terms of skill set.
Appreciate the advice and does relate to some of my experience in ES - for VC though I am unsure how much valuation will be learnt, definitely hard valuations relied upon nearly nowhere near as much as PE, As lots of VC projections seem to be to me almost as if from thin air
While that's certainly true, at least you will have to think about the business model and model something out, like the projections might be complete bullshit but youll be doing something- ive heard in equity sales you are quite literally reading off of the notes given to you and trying to make a sale with zero modeling or anything of the like- pls correct me if im wrong on that though this is what I have heard at the big BBs
I am older than most here and know folks in both professions. I have done neither of them, so please take with a pound of salt.
Equity Sales
Pros: a bank gig, with a nice name, can look "prestigious" for the next full time interview in the future, social, free stuff, relationship building potential, can actually learn a lot and fast, especially as a junior. If you are social, like taking people out, are savvy and can find a way to move around the bank to do other stuff and build relationships, may be worth a shot. Relationships are so important to build in life in general and this job is all about that. If you are inquisitive, this could actually be an awesome internship since you have to face with everyone and get to know about a lot of different sides of the business. Research, sales, trading, derivs, MO/BO, corporates, HFs, LOs, etc. Since you are junior you won't be pigeonholed and a good relationship with any of the above and some luck can position you very well.
Cons: a dying profession (automation, no edge, public availability ot data, changes in data, speed/cost of execution etc). Forget money, these guys are just more and more rare and less and less valued by everyone (and that is nothing about them as people, it's the role). It's really just parroting your bank analyst's research which most people think is garbage/biased since said bank needs corporate access to provide investment banking services. (Ie. if they put a sell rating on a company, do you think that company is going to be like "hey bank, we want to give you some investment banking business even though there are like a dozen other banks charging the same price and NOT putting on a sell rating on our stock?") Classic conflict of interests. A true grind. You get the downside of generating less and less revenue, being easily fire-able, with the upside of not getting paid much in good years.
VC
Pros: Recently raised capital, so they will be around a while. Small firm, get to know people and potential for FT if liked with little/no bureaucracy. Some prestige (for now). Learning about doing deals, and "investing." Probably more research based, but so much of VC as someone young is getting to hustle and meet people and try to get leads on deals to take to more senior people. That's a short way of saying drinking, going to conferences and meeting 1000 duds for hopefully 1 investment. You'd see and meet a lot of cool, different, interesting people... Or you could just be some research/ppt monkey in the office. Depends on the shop.
Cons: VC is seriously Feast or Famine. I was alive and well for the dot com bubble. And while this time it's different, it's not. The VC attitudes and excuses and nonsense are the same but IPOs aren't as big a deal. For anyone who doubts me, look at a 30 year chart of Nasdaq.. VC is fickle, there are tons of punters around with smoke and mirrors who don't know anything but are able to raise capital (like a lot of people in finance actually), you may learn nothing (which may be a lot in itself - ie understand that most VC is a joke).
I guess the question is: what is your personality? Do you want to be more of an investor or communicator? Are you more into just finance and more stuff set in stone? Or are you more imaginative/dreamy and entrepreneurial? Are you a client entertainer/friend to all? or a hustler for deals? You may not know, and that's ok.
I hope that this is helpful
Good Luck
Thank you for the advice - great summary overall. Both offers are FT to clarify - got the offer through internship in ES so I done it , know that i enjoyed the work (or at least the buzz of the markets didn’t wear off after 3 months last summer) but doubt whether long term I would still find it fun (summarizing the banks research and unable to provide a counter view), especially as I believe we are entering bear markets soon so the bank will be a depressive place (which in a Bull market at the best of times still could sense a lot Of it). VC i never have done but landed the gig through some entrepreneurship work I have done before, so really unsure what it will be like. I believe starting off first few months will be a PowerPoint research monkey but then as my experience grows will be at conferences etc representing the firm (this is trajectory I have seen others follow). My main personal question for myself is what is better long term - short term not worried about a few extra bucks here or there whilst starting my career!
Minus rerum consequuntur ullam a. Earum soluta ut eos ut. Sint quisquam sunt quasi officia et.
Qui et dignissimos rerum qui corrupti praesentium pariatur. Labore dolores sequi voluptatem facilis minus. Sed sint magnam magni aut mollitia itaque. Dolore tenetur eveniet eligendi. Molestiae non repellendus quia rerum.
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...