FOF PM Analyst offer vs DCM analyst offer - Advice needed!!
Currently, I have 2 offers, one is from a large FoHF (>10b AUM) while another is from a small boutique IB in their DCM division. I am leaning more towards the FoHF offer due to its reputation in the industry. Some of my friends advised me to take up the DCM offer and move on to a BB later. However, I am worried that I might not make it into a BB since the boutique is a rather small player in the IB industry. Am I making the right decision in choosing a company's reputation rather than the job scope?
While I do understand a FoHF career will most likely not get me into the HFs, is it possible that I move on to a BB Investment/Asset Management side? In fact, since the working hrs are better in the FoHF, I intend to complete my CFA and CAIA before moving on. Does this help in my exit opps?
Any advice will be much appreciated as I have to make my decision soon. Thanks!!
I interned at a large FoHF last summer. One of the analysts is doing CFA and CAIA, with the intention of moving on to something else when he's done. I get the impression that he would have rather started elsewhere, and only took the FoHF gig because it was the best he could find in his situation.
The skill set learned at a FoHF is, generally speaking, pretty weak and far less technical when compared to almost any "FO" type finance job, DCM included. Unless the pay relative to the cost of living is vastly better at the FoHF, I would take DCM. Even then, I'd rather be making less for the first year or so and potentially have an opportunity to move on to a BB then do FoHF.
Brand name vs. transferable skill set - indeed a difficult question to answer.
Having gone with brand name over a more transferable skill set when I graduated UG, I'd highly recommend opting for the latter. It seems once you start off on the wrong path, it is very difficult to change directions. Starting out it is all about analyzing the breadth of future opportunities. IB definitely widens this scope the most.
Thank you guys for the inputs!
I know that the FoHF has some really outstanding guys, eg. ex GS ibankers and I am thinking that I would be able to learn from these people. And this makes me wonder if the FoHF isn't that fantastic, why would they want to join? In addition, if my job scope includes doing market analysis, instead of pure due diligence work, does it help?
On the other hand, would starting out in a small boutique IB make it difficult for me to jump to a BB? And if I intend to pursue a MBA in a top business school, should I put more weight on the firm’s reputation?
Take DCM and don't look back.
Think of it this way -Let's say it's your dream to be a pitcher for the NY Yankees (i.e. work for Goldman Sachs). You have two options coming out of college. You can either (1) be a pitcher for the Washington Nationals (DCM at the boutique) or (2) be a QB for the New England Patriots (analyst at prestigious FoF). Sure, it would be sick to work for a well known football team, but you'll never get on my starting rotation...
I took a job out of school at a firm in the FOF world, one of the top places actually, and although everyone knew its name and respected it, they all said hey you don't have any applicable skills to banking. It was extremely difficult to break in. But I passed CFA Level 2, internalized everything on M&I and BIWS, and kept trying until someone said yes and here I am. Would have been MUCH easier if I had started at a boutique.
Prestige is obviously a nice thing to have, but don't blow it out of proportion. Good luck with your decision.
A few people, myself included, shared their insights on the FoHF experience in this post:
//www.wallstreetoasis.com/forums/offer-help-fof
Personally, I interned at a FoHF and am certain I would have developed an infinitely more interesting and useful skill set in DCM.
That was a terrible analogy
Yea... Not my best but I think u get the point regardless of ur sports allegiances .
This made me laugh :)
FoF models are like non-profit organizations. The field is ultimately a destination after doing something else more than a sane place to start.
I've read the boutique's annual reports and found out that they have done and closed lev. finance deals. Does this make it more attractive? Apparently, their deal sizes range from 20mn to about 1bn.
However, I am concern about getting into a top biz school for my MBA. The FoHF does know about my DCM offer and their view is that they can better prepare me for grad school and given their brand name, I would have a better chance of making into a top grad school. Any view on this? Thanks.
Just to add on. If my end goal is MBA ->> Asset Management (eg, JP Morgan AM), should I still go for DCM?? Thanks
Yes. Contrary to the belief of a lot of college students/people outside of industry, FoF doesnt give you much transferable skillset into traditional AM
Even if I have CFA and CAIA, it will still be tough?
This.
Hi,
Today I spoke to my director regarding my compensation. I am offered 50-55k salary and 10-15K bonus. When I asked how would my salary increase over the 3-year analyst program, I was told that it would be about 5-10% annually. Is that too low given that the FoF is one of the largest out there?
Nope, that's right. Pay across the FOF/Inv. Consulting industry is about that for 1st years.
The fohf offer is a 3yr analyst program.. after 2yrs I would reach the and analyst level.. any idea wad my compensation would be? And after 3 yrs is it possible to break into the BB in their investment management side? Thanks...
Yes. No modelling is a huge deficit.
Agreed. OP, we've gone over this several times: The skill sets are DIFFERENT.
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