Equity Research at a Bulge Bracket's Asset Management Division
Can anybody provide color as to whether compensation for equity research within a bulge bracket's Asset Management division is higher than typical AM pay? I know starting base is 85K based on an offer letter but I don't know anything beyond that.
Also, would this be considered to be more difficult/have better exit ops than sell-side ER?
Compensation depends on a lot of things, particularly the group that would be hiring you. I'm not sure what you mean by "typical AM pay" but research analysts are compensated nicely, especially at active funds.
If you want to work on the buy side, buy side research experience is more relevant. If you'd rather work on the sell side, that experience is more relevant. I would argue the nature of the work is a little different, with the sell side dependent more on your ability to develop relationships and pitch your viewpoints. On the buyside, you are challenged more intellectually and must conduct research with incredible scrutiny and rigor.
Either way, both are great opportunities for someone who enjoys studying markets.
Thanks for the reply. By "typical AM pay" I meant AM pay out of undergrad for non-research positions at a bulge bracket. Was curious if there was a difference considering research was significantly harder to get than some of the other roles.
Pay might be a little higher initially but I would expect it to, at best, converge with typical buy side pay over time. I suspect that at mid and higher levels the pay is actually lower.
It depends upon the bank though. MS and Lazard have well regarded Asset Management arms that run truly independently and aren't just coasting off the bank's brand name. JPM, GS, and ML are basically asset gathers that collect assets from unsophisticated clients who seem to think "it's GS, it must be great." See the Libyan sovereign wealth fund that got screwed by GS for a great example. Just my experience...
Thanks for the input. The particular program I got accepted to is more like the latter you described. It's typically 3 years as a research analyst and then out to a small fund. With that said, some people are given the opportunity to move to a senior analyst role if there's turnover.
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