Seeking some advice here, what would you do? I have 4 years of work experience in Corporate Finance and have an opportunity in the next few months to join a very large credit focused investment management firm in a research capacity. The role seems great and it is something I am definitely interested in, but it would be an entry level role; however, compensation is similar if not more than what I am making.
The other option I was thinking about is applying to grad school specifically Wharton, Columbia, and Booth and then trying to get a credit buyside role from there. I also have already taken the GMAT and feel good about my score.
I was leaning towards taking the role, and passing on grad school for now. But others thoughts would be very much appreciated.
I think you know what you want to do, but I'll give you the reassurance.
Take the role. Why go through grad school to get the opportunity you already have in front of you?
If you decide after a couple of years that you don't like it as much, then go to grad school. The option to pursue an MBA is a great safety net, so you can always fall back if needed.
Thank you appreciate it. I guess my end goal would be doing something more on the private side (direct lending or mezz) so thought maybe could jump straight into that from grad school. Definitely more risk involved trying that though as it’s not a sure thing I’d get a role like that or into grad school at all for that matter. I think I know the better decision I just studied very hard for the GMAT, because I wanted to do that before this opportunity presented itself.
Well there’s a middle ground here. If the opportunity isn’t exactly the same type of role you are looking for, then I would recommend taking the job and doing it for only a couple years unless you really like it and then going for the MBA.
By taking the role, you’ll have some experience in that realm before b school which will make it easier to transition.
Agreed, definitely something I’ve also considered and that makes a lot of sense. Thanks for the perspective.
Take the role.
If you go MBA route, it's fine too. Just know you are competing with classmates who have pre-MBA buy-side experience.
If you are convinced you want to work in credit and the job you are getting is close to what you want to do long term, I think it makes sense to go for it. The MBA makes sense if you want more optionality into other careers or if you really don't want to start in an entry level position.
However, if you do an MBA, you will likely compete for an experienced hire position with people with experience in on the buyside. Having done an MBA and recruited for buyside, it's very difficult if you don't have any prior buyside experience. If you start now in an entry level position, in 2-3 years you can be in a similar role to what you would get after a 2 year MBA. You also still retain the option to go to an MBA, although it isn't clear if your profile would be viewed as strong as now, as you'd be older and in a similar role to someone 4 years younger.
And last point, you mentioned you worked hard for GMAT and got a good score. Although that's great to hear, it doesn't mean you're certain to be admitted to Wharton, Columbia or Booth. A high GMAT (or GPA for that matter) only ticks a box, so you don't have to overcompensate with other parts of your application.
Thank you this all makes sense, and of course by no means do I think it’s a guarantee that I would get into any of those schools.
Last question, if someone was already on the buyside then why would they go back to school and recruit for a similar position? Is it usually just because there isn’t room to be promoted, because from you it sounds like compensation would not be all that different.
There can be many reasons why someone from the buyside might want to do an MBA, a lot of times it is because the firms won't promote them otherwise, or there isn't any room to move up. Sometimes they want to try other things, get broader perspectives, expand their network etc.
As far as I know, the compensation for direct promotes or MBA hires is the same in most, if not all, buyside firms. You may get a signing and/or guaranteed bonus if coming from an MBA.
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