Does ER Have Corporate Finance Exit Opps?

Hi,

So basically, I have narrowed my interests to 3 areas: equity research, long-short or fundamental/deep value hedge funds, or corporate finance. I know that equity researchers can obviously continue to be in ER and typically do well in terms of exiting into long/short or value hedge funds (correct me if I'm wrong on the hedge fund part), but would it be possible to do ER and then exit to a financial executive position at a F500 company? I'm particularly interested in infrastructure or energy companies, so would having deep industry knowledge plus, for example, a CPA and a finance degree be good enough to switch to corporate finance? Are there any skills that I would learn in ER that may benefit me in corporate finance, or is traditional M&A banking the only way to get experience in that?

Comments (18)

Jan 4, 2011

if your goal is corporate FP&A, ER isn't a great stepping stone, not necessarily because the nature of the work but because of how it's viewed

Jan 5, 2011
GutShot:

if your goal is corporate FP&A, ER isn't a great stepping stone, not necessarily because the nature of the work but because of how it's viewed

I'm not just interested in FP&A. I'd also enjoy corp dev or corporate treasury. I bet treasury would be tough but what about corp dev?

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Jan 5, 2011

And how is it viewed?

Jan 6, 2011

I know several ppl who moved from ER to corp fin in the energy sector. Unfortunately some of them ended up in the IR role... but in general its not difficult; in ER you know the companies you cover in and out and management knows that. You also speak with these people and build relationships, shouldnt be too hard to feel around should you want to jump ship.

Jan 5, 2011

errr what is IR?

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Jan 6, 2011

Investor Relations

Jan 5, 2011

What does the Investor Relations function do? Would ER have any skills transferable to capital budgeting type of work or corporate development? Those are my primary areas of interest in corporate finance along with maybe treasury

Pretty women make us BUY beer. Ugly women make us DRINK beer.

Jan 10, 2011

How would you get a CPA doing ER?

Jan 29, 2011

M&A is the way to go for Corp Dev bro.....that is pretty much exactly what they do, except less hours, less pay, likely less deals, and work for a corporation instead of a bank. 99% of Corp Dev folks are ex bankers who want a more chill job.

Jan 30, 2011

Pay sucks in corporate development

Jan 30, 2011

It is easier to go to a company in the sector you cover from ER than it is to go to a hedge fund, in my experience anyone who wants to go work in their industry has gotten a job with relative ease, it is far more difficult to get a buyside job in my opinion. I've seen this happen a number of times with ER people going to relatively high levels within small cap companies in particular, a little more difficult if you are talking 40 billion+ large cap companies, you can still get a job there it just won't be anywhere near C-level with the exception of being head of IR, not a bad job by the way.

Jan 30, 2011

Saying she's an analyst is entirely misleading...I think once you're MD just about anything is possible.

"The analyst, Adrianne Shapira, a Goldman managing director, spent 13 years at the firm and covered retail companies like Target, Best Buy, Macy's and J.C. Penney. She will step into her new role at David Yurman on Oct. 22, the jeweler said in a statement."

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Jan 30, 2011
WalMartShopper:

Saying she's an analyst is entirely misleading...I think once you're MD just about anything is possible.

What the fuck are you talking about?
The is so much wrong with everything you wrote.

    • 1
Jan 30, 2011

Here is what I have seen. These are ranked by most common to least common, and it of course depends on what shop you're at.

1. Asset managers - Wellington, Fidelity, etc - this is VERY common at my shop as we are more value, long-term oriented. I'd say 60% of our leaving associates do this.

2. HF - Probably 30% of our guys go to HFs, all different strategies.

3. Different sellside shop - 10% go to other sellside research shops.

I don't know a single associate at my firm who has left to go corporate, nobody really wants to take the paycut.

Jan 30, 2011
newfirstyear:

Here is what I have seen. These are ranked by most common to least common, and it of course depends on what shop you're at.

1. Asset managers - Wellington, Fidelity, etc - this is VERY common at my shop as we are more value, long-term oriented. I'd say 60% of our leaving associates do this.

2. HF - Probably 30% of our guys go to HFs, all different strategies.

3. Different sellside shop - 10% go to other sellside research shops.

I don't know a single associate at my firm who has left to go corporate, nobody really wants to take the paycut.

many thanks for your answer newfirstyear

any insight on the compensation?
also, how much less do you mean by saying paycut

thanks

Jan 30, 2011
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