Another Investment Banking reflection

I read a post where someone was reflecting on their analyst years in IB. Figured I’d do the same, although the post will be a bit different. This is how I feel and look back as I am about to switch to PE from GS/MS/JPM in a couple of months.

What I will miss

  1. General office camaraderie. I was really thankful for me team and the people were much nicer than I had dared to hope. Fellow analysts in general super helpful, most associates nice and respectful. Some good nights out and office drinks. Some close friendships. The “we’re in this together” at the office at 3AM, effing around and being crazy inefficient. Super thankful for having been a part of such a great team.

  2. Doing meaningful work. I understand that we are not saving lives but I’ll admit I was damn proud putting together materials that were being used for meetings with CEOs of multi-billion dollar companies, and even better to be on calls with them. Seeing a deal reported in WSJ was really cool too. Working on live deals with massive, well-known companies, knowing that almost nobody in the world had any idea what was going on, was fun. Doing some really interesting analyses, even though they’d end up being thrown into the garbage, helped me learn a lot. Even getting “stupid” one-off requests in evenings / weekends from clients, you knew you were doing something that was important for them in making serious decisions.

  3. Learning. Similar to the above, but slightly different. Being on calls / meetings / working with some of the absolutely smartest people I’ve known, some top bankers who know their stuff and more. Just being awestruck by their knowledge and understanding of what they were doing. Everything from sector knowledge, deal dynamics, strategy... really just work with people who are thinking five steps ahead and make sure not to miss anything. I know this knowledge only comes through experience, and in a way I still feel like I have a ton left to learn from these people.

What I won’t miss

  1. The inefficiencies. Sometimes waiting for hours doing nothing, only to have to work until 4AM. I understand why things are something like that, but it can be incredibly annoying. Particularly frustrating when the MD had never looked at the deck or commented until the day before the meeting, then realizing he wanted something totally different

  2. The fake deadlines / unreasonable timelines. Similar to the above, waiting for hours for something but then desperately needing to turn things ASAP was very frustrating. And sometimes the timelines were just ridiculous for no reason. I feel like I had way too many extremely stressful moments where I had to get work done in record time, where it could have easily be avoided.

  3. The stress. Points 1 and 2 culminate in point 3. This job was way more stressful than I thought. People say that it’s long hours / low stress but in my view that’s not accurate. Sure you have times of no stress, they are great. But then there are the times of extreme stress that I found really challenging.

  4. The menial work. The gut-wrenchingly boring stuff. Setting up meetings, going to internal committees, doing 1-page profiles on every company under the sun, spending hours on stupid research or benchmarking, spreading comps, getting conflicts clearance... yes, a surprisingly big part of this job is not that fun.

  5. The assholes. Yes, sadly there are some. They mostly came from other teams that I worked with. A few bad apples in my team too, literally dreaded working with one associate that I kept getting staffed with until I said that I didn’t want to work with him anymore.

  6. The unpredictability. Much worse than the hours. Working 90-100 hours isn’t too bad for short stretches when you know. I would say that working for 50-60 hours Monday through Friday and expecting a quiet / free weekend only for it to be blown up with a random Saturday email was the worst. Not daring to go with my gf to Brooklyn without having my laptop with me. Not daring to leave the city / make any plans because I MIGHT have to work.

A couple of notes to future analysts:

  • Don’t expect a pat on the back / people to be impressed that you pulled a few 100 hour weeks in a row. Yes, your family and non-banking friends will think it’s crazy, but nobody at work cares. We’ve all been through it.
  • A positive attitude goes a long way. You’ll be working hard and it won’t always be fun, but it’s your choice to find a positive angle on things. It will make the job a lot more enjoyable. Also, people will appreciate your good attitude and hate your negative attitude.
  • Try to learn as much as you can. These two years fly by and I wish I had learned more. Pick your associates’ / VPs’ brains on things. Learn about modeling, corporate finance, sectors, deals... you’ll be surrounded by people with a ton of knowledge to share.

I could write more but it’s late! Overall, I would say that I enjoyed my banking experience, it wasn’t always easy but I wouldn’t have traded it for anything in this world. If those negatives were a bit less negative, I could have seen myself staying. Let me know if any questions.

 

what was ur comp for each year u worked? is it what you expected the classic 115k-145k or something less or more?

 

Any reasons why you're choosing to move on to PE besides the IB negatives you mentioned?

 

Honest answer: I think the bad just slightly outweighs the good in banking. And I think it skews the other way in PE. Hoping for more predictability and not being my client’s “bitch” so to speak, which can be annoying at times.

Mostly it’s because I’ve always wanted to try investing and I think it’s overall more interesting to be an investor than a banker. I am hoping eventually to open a smaller investment firm in my own country once I’ve had enough experience abroad. I think I’ll learn a ton in PE and after two years I can figure out if I want to: continue in PE, go to business school, move over to other buyside roles (public assets), go more towards corporate or whatever. I feel like I just don’t want to be a banker for life, my bosses generally don’t seem to be happy people.

 

I will say the stress in PE is on another level compared to IBD. The hours are better and the work is more interesting, but you take things much more personally. I found myself actually losing sleep worrying about things in PE while in IBD I was never stressed about anything beyond my next immediate deliverable. YMMV but keep that in mind.

 

There have to be other reasons why you are going into PE that are not just simply oh, I think IB sucks because of these reasons and PE is slightly better. If you really didn't want to do IB, you wouldn't want PE either because like others said, there is way more stress and way more on the line with a ton of mindless shit too. I think you are driven by other things including money that make you want to continue in high finance but trying to get the best out of what you can do while still making good money. That being said, I like your positive attitude and belief that what you are doing is helping the world. All of the following exists in PE too so be VERY AWARE:

What I won't miss The inefficiencies. Sometimes waiting for hours doing nothing, only to have to work until 4AM. I understand why things are something like that, but it can be incredibly annoying. Particularly frustrating when the MD had never looked at the deck or commented until the day before the meeting, then realizing he wanted something totally different The fake deadlines / unreasonable timelines. Similar to the above, waiting for hours for something but then desperately needing to turn things ASAP was very frustrating. And sometimes the timelines were just ridiculous for no reason. I feel like I had way too many extremely stressful moments where I had to get work done in record time, where it could have easily be avoided. The stress. Points 1 and 2 culminate in point 3. This job was way more stressful than I thought. People say that it's long hours / low stress but in my view that's not accurate. Sure you have times of no stress, they are great. But then there are the times of extreme stress that I found really challenging. The menial work. The gut-wrenchingly boring stuff. Setting up meetings, going to internal committees, doing 1-page profiles on every company under the sun, spending hours on stupid research or benchmarking, spreading comps, getting conflicts clearance... yes, a surprisingly big part of this job is not that fun. The assholes. Yes, sadly there are some. They mostly came from other teams that I worked with. A few bad apples in my team too, literally dreaded working with one associate that I kept getting staffed with until I said that I didn't want to work with him anymore. The unpredictability. Much worse than the hours. Working 90-100 hours isn't too bad for short stretches when you know. I would say that working for 50-60 hours Monday through Friday and expecting a quiet / free weekend only for it to be blown up with a random Saturday email was the worst. Not daring to go with my gf to Brooklyn without having my laptop with me. Not daring to leave the city / make any plans because I MIGHT have to work.

Will update my computer soon and leave Incognito so I will disappear forever. How did I achieve Neanderthal by trolling? Some people are after me so need to close account for safety.
 
Most Helpful
  • Don’t be afraid to ask them about nuances in a model you see or ask if they can help with your model
  • If you want to know more about a sector that your associate / VP is knowledgeable about, don’t hesitate to ask them to educate you about anything related to the business
  • Literally ask questions about anything you find odd / interesting: why does A pay dividends and B not? Why is X trading at a higher multiple than Y? Why does sector I trade at a higher multiple than sector II? Why is company A much less levered than B? These are just SUPER random, you’ll figure out plenty of questions when you’re on the desk. We’d talk about geeky corp fin stuff all the time.
 

Honestly the thing I miss the most about working in the office (wfh now cus of covid) is sitting next to my VP who is like an ocean of knowledge. Guy knows our sector like the back of his hand and it was so easy to learn. Also a really chill dude which was obv a plus.

Dayman?
 

I have a friend that just moved to a megafund so suck a dick

 

It was off-cycle but through a headhunter. It’s outside of the US, it’s the PE arm of a pension fund / SWF. Sadly visa issues pretty much prevented me for getting a PE job in the US as I was here on a student visa and did not get H1B. My team does direct investments, co-investments and fund investments. I kept recruiting on a need-to-know basis and people were generally pretty supportive.

 

I can relate to #1 of the good so much. I remember one night a few months ago where me and my analyst friend were waiting for comments at like 5am (because of a time difference) and we were kicking a ball around the office. Being in the proverbial foxhole like that is annoying but it has its moments. Being an analyst is a pretty unique experience, regardless of what I choose to do, I'm glad I am getting it.

Dayman?
 

Hey mate, I am an international student tok and did not get the h1 first time around.

would really appreciate it if you could message me- wanted to get some advice. I also think I know which fund you are going to. I grew up in that region so very happy to chat about my experiences/ give any recommendations

Array
 

Soluta iure voluptas ad. Voluptatem ad laudantium et excepturi et quas eum. Atque doloremque cupiditate similique optio libero ut.

Et distinctio soluta non. Numquam saepe ipsa qui quo. Occaecati cum labore sunt ab maxime. Et at nemo labore nulla quae dolores earum rerum.

 

Rem amet repellat voluptatem eos qui. Occaecati perspiciatis voluptate facere necessitatibus aut.

Eum velit ut similique aut. Enim perferendis magni itaque ullam excepturi. Vel odit rerum maiores ad aut eum delectus necessitatibus. At quis mollitia qui incidunt est a.

Aut magnam repellendus facilis enim vel placeat aut ipsam. Et voluptatum et aut sapiente id. Nesciunt numquam occaecati ut.

Adipisci maiores cupiditate omnis sed et. Saepe minus qui sint provident ut. Qui qui aut voluptatem voluptas atque distinctio enim atque.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”