I am hoping to get some feedback from ex/current IBers with 7+ years of experience on best path forward when considering starting/partnering with someone in running an LMM IB platform.
Brief Background: I left IB about a year ago after working for four years as a special situations and generalist associate at a boutique LMM/MM IB shop. I currently work in a finance role at a large CPG company and, to be honest, am not exactly thrilled with the role. The primary reason I left IB was to find a role which was still mentally challenging but offered some work-life balance. I cannot exactly say it has worked out that way. Out of the 12+ months I have been here, I would say I am working 60+ hour weeks about 70% of the time. It wouldn't be that much of an issue if I was fairly compensated for that time but I am making about 55% less than I did in IB. Every incremental hour above 40 hours is worth more $ to me. In addition to that, I also miss the transactional nature of the work and the client interactions.
Situation at Hand: I am considering leaving my current position and getting back into IB. I have two paths which I am considering and are real possibilities: 1) partnering with some friends who have a small LMM IB shop set-up and working as an associate/vp there for % of deal fee (have not nailed down fee % yet); or 2) try to get a role as an associate/vp at a BB. I would ultimately like to be a business owner and pursue some arrangement in situation #1 where I am either running my own shop or partnering with someone in the future.
Questions I have are:
- How much of a difference do you think it makes in the future for starting a small shop if my resume said 6-7 years of banking experience (2-3 at a BB) versus 4 years of banking experience (only LMM/MM boutique shop)? I am honestly not too thrilled of dealing with the BS office culture and poor management which is so common across all BB IBs.
- What do you think is a fair/good deal fee percentage for the arrangement in situation #1?