Crossroads en route to public investing: Restructuring Associate at EB vs Sr. ER Associate covering Tech Hardware at BB
Background is already in ER, but covering an undesirable space at a bank not worth mentioning. Been looking to move from my less than ideal position with an ultimate interest in investing, and have the following offers in my pocket:
- Restructuring Associate at a Top 3 EB in the space (PJT/LAZ/Moelis/HLHZ)
- Sr. Associate/AVP at a top BB covering Tech Hardware
This is all post-MBA, and I'm trying to weigh which seat would most easily transition me to the buy-side in the shortest amount of time (former likely to distressed/special sits and the latter to L/S equity). Any help/opinions would be fantastic and greatly appreciated. Thank you!
bump
I'm not really qualified to comment but restructuring could be entering an interesting phase that could throw up all sorts of opportunities. Similarly for distressed investing - you might be able to jump on that bandwagon after a year or two as shops perform/grow and take advantage of the current environment.
ER however seems to be becoming increasingly irrelevant, and I'm sure we'll see the L/S equity space shrink/consolidate after this correction.
Hasn’t long short proven itself right now? Granted I think they may be too big for current market structure but all the platforms are up. Where they’ve had problems is single managers who have had factor and beta risks.
Distressed investing after a year or two? LOL, the window of opportunity lasted 2 weeks, then the Fed announced they will buy junk bonds. No wonder Howard Marks is pissed.
Lots of private opportunities. Fed actions will affect the pricing of risk, but there are things to be done still.
Do you think that's a material headwind to me making the buyside leap?
Restructuring gives you more of a differentiated profile that is probably easier to market.
BB banking is OK but more generic and likely to compete for most HF roles with candidates with a more specialized profile, which isn't ideal for you.
Hands down go to EB RX. Learning will be unparalleled to that of ER at any BB banks. And you'll definitely get more looks coming from EB RX from headhunters as well. ER just simply isn't on the same level as M&A or RX..you're not doing deals. Besides, assuming you're doing an MBA, what's the point of getting that degree just to go back to the same space? Story would seem incoherent.
100% agreed on the story side of things.
My main concern is whether Associates will still get enough looks from headhunters to make the transition. Assuming your title/role as a 2nd Year Associate is legit, can you give any color there?
Bump for more input! Thank you kindly!
Also interested, so will continue bumping this..
Bump
bumppp
The restructuring role will open up the debt world to you which, combined with your ER experience, would make you an ideal candidate for a lot of event-driven funds that look across the capital structure. Given the impending recession you should get a lot of deal flow and exposure to different types of events: debt-for-equity swaps, secured debt issuance, out-of-court debt exchanges, and liquidations.
The only thing that I would caution is that you will be moving away from a markets position and into a transactions position. That means much longer "M&A-like" hours and deadlines. You don't mention if you're married or have kids so you need to consider the lifestyle implications. Also, once a mandate has been completed you move on and generally don't follow the company after that. If you like getting to know a group of companies or becoming a sector specialist you might prefer the ER position.
Adding onto this, there's a whole lot of "bitch" work that you may not be accustomed to doing in ER (since you don't have to). Be ready for this change, even as an associate.
This is one of the bigger things I've noticed after moving to M&A after I worked in sell-side research. There's alot of unnecessary work created during the deal process.
Definitely getting that sense as I start approaching D-Day for this decision. The bitch work involved in shaping up internal-only decks for example is something that was called out to me.
Kidless and unmarried, but I'd hope to have time to at least date casually in the IB life.
Regarding the comment about sector expertise - I definitely enjoy the learning aspect and becoming an expert, but, on the other hand, working across a variety of sectors seems like it could be very interesting.
Ultimately, though, I'm solving for my best/quickest path to investing, in whatever form that takes.
If you are going into a RX group at one of the EBs mentioned, you will work 100 hours a week for the foreseeable future. Not exaggerating or trying to scare you, but the amount of work is unprecedented at the moment
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