Chances for MM vs BB in Investment Banking
Hello
Is it easier to get a job at a MM firm compared to a BB firm? I understand the MM pays less, so I was under the assumption that it may be easier to get in.
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It's the fun answer of it depends.
You've provided no information so I will shoot out some:
TLDR; Bigger banks (whether BB or MM) are more likely to use demographics and educational background. However, networking can always help get you in. Money here matters less for difficulty
Oh ok, I understand. And how much would the total comp be at a mid size MM firm for a first year analyst? Would it be in the 120-140k range?
Like other comments say, it really depends. Working at an EB like HL, Jefferies, etc. will pay quite well while your "less-prestigious" shops have better hours and typically pay less.
I can say from friends working at Jefferies and HL the comp there is $130 - $160k all in (assuming restructuring at HL and a top group at Jefferies).
At the end of the day, if you're looking to make a decision based on compensation you're probably making the wrong move. While all banks seem the same you should ask yourself what qualities (team, work, hours) you want out of your work and (if you have multiple offers) which will best fit what you're looking for. All of these banks compete in different ways, have different types of people, and focus on different types of work - understanding this can help you make a more informed decision that can make your 2-3 years suck a whole lot less and *maybe* be enjoyable. Going into banking blind with mainly compensation in mind has typically worked out poorly for my colleagues across the street.
Edit: I see from your profile you're still in high school, this career may seem great for prestige and money but if this is all you chase you're going to be miserable until you come off of the wheel of IB -> PE -> burning out. If you haven't even started college, my advice to you is go and find some unpaid internships for the summer or fall semester and work at some local investment bank that won't pay you. Try out the work there or doing something tangental and find what you like. Don't just go into this as some kid who was born to work at the Goldman Sachs. (Youtube:"I want to work at Goldman Sachs")
The MM term is so unhelpful because it encompasses too many firms with varying degrees of deals and prestige.
The top MMs (Jeff/Baird/Blair/HL) are still quite difficult to get into and definitely don't pay any less.
Your smaller regional ones are a different story. Still not a cakewalk but more about networking since they won't have a wide formal recruiting net.
MM don't pay less. Most banks pay street.
Kind of anecdotal but Jefferies's energy group has often been known be one of the highest paying groups on the street with analyst 1s crossing 200 even before the pay bumps. That said, it is also one of the sweatiest groups
Not true that BB pays more than MM. If anything, it is more likely the other way around, if you're comparing BBs to global, full-service MMs like William Blair, Piper Sandler, etc.. MMs have to pay more to attract and retain talent in more often tier 2 or 3 cities for a "less reputable" firm name. Also, MM is more active, including in down markets (MM M&A activity is more resilient to economic changes than the market for BB-sized M&A deals) so pay and job security is likely less variable/volatile/risky.
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