BAML IB Groups (NYC)
Recently left BAML (product group / ivy league) for a buyside opp, so thought I'd share insight on groups. BAML is an excellent bank, but thought I'd be REALISTIC with those looking for advice. M&A and LevFin usually have the largest intern and analyst classes, with the coverage groups trailing in size. FSG always have the smallest with 5-8 analysts per class. *RE is not included in the list below, but is one of the top 3 RE IB groups by RE exit opps
Product Groups
PE placement is highly reliant on the individual. Just being in a product group alone will not guarantee you PE, just as being in a coverage group will not exclude you from PE. The groups help make the doors appear, but it's up to the person to unlock it.
1. FSG has the best culture, work-life balance, and placement with most placing at UMM/MF
2. M&A places ~half the analysts in UMM/MF or HF. Rest leave to LMM PE, strategy/corp dev, etc
3. LevFin used to place quite well, but only ~third of them place now in MM funds (MF is rare, but still doable). The rest either accept associate promotions or leave to credit funds, etc
Coverage Groups
Breaking into MF PE is going to be extremely difficult, with UMM being hard and LMM seeming more possible because most of the modeling is done by product group analysts and as a coverage analyst, you will spend your time in PPT on industry slides for mostly pitches or live deals. If you do use excel it will be mainly for spreading comps, occasional light modeling (for pitches), and reviewing the models from the product teams. However, with the adequate prep, your excel skills should be enough to pass tests.
4. HC (Mediocre PE placement, but deal flow is lagging due to senior exits)
5. C&R (PE placement is lagging; strategy/corpdev is the common exit)
6. TMT (Used to be worse, but got significantly better)
7. FIG (Decent placement in FIG PE)
8. GIG (Harder to place in PE)
9. NR/E&P (Harder to place in PE)
Maybe you’re classifying UMM/LMM funds differently then what I had in mind, but solid funds have decent representation from industry groups. Off the top of my head, I saw that HGGC and Kohlberg Co. had a number from the coverage side.
The post just seemed way too pessimistic about exits if you’re not in a product group.
I don't know if you'll be able to speak to this, but how easy is it for Associates (specifically post-MBA, if that makes a difference) to transfer groups/cities within the firm?
BAML is great with mobility and I've seen this done multiple times, but you must be a top performer and have the support of senior bankers. Without the 2, you might as well just recruit externally.
Do you know specific placements from levfin in the past year?
Great post - would be great if we WSO could have such an updated database of exits/group rankings especially for lower tier BBs where there is a higher variability - AndyLouis WallStreetOasis.com Consider doing this?
It would take a lot of man hours to compile, but I'd think this info could be obtained 100% through a linkedin search, right?
Given the constant debate and wild speculation on this site over exit opps, this would be a pretty popular offering.
Many people do not disclose groups within banks unfortunately.
You sound like one of the interns we had who would never shut up about how much they belong in a product group (albeit being in coverage) and no one liked that kid. I worked in a BAML coverage, not FIG or RE, and I am currently at an UMM and had obtained several MF interviews throughout my process.
To be honest, yes it will be tougher to stand out in a pile of resumes on a group-by-group basis. However, there's MUCH more to buy-side recruitment than what group you're in. I have sat through several screening processes and you would be surprised at what some funds look at.
You sure went on a pessimistic rant there for someone who just leveraged their bank to leave for a "buyside opp"... grow up buddy
I'm met a few senior FSG guys at BAML via various channels in recent years. Was very impressed with all of them, very sharp yet down-to-earth.
Can you give any more color to the REIB group?
REGL has been the best group on the street for the last 10 years. They do all of there modeling in house and most people place at REPE, clients, or regular PE. RE modeling is isnt that different and there is a gaming segment (operating companies) so it is easy for people in the group to know how to model regular operating companies.
Why is NR/E&P harder to place in PE? Surely you just have to focus on the PE funds that target those industries?
How open and/or helpful were senior bankers in your experience when you were recruiting for buyside opps? I'd imagine it varies based on groups, and my school places very well into M&A, FSG, and Healthcare so any additional insights on those groups would be appreciated!
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