Got offer lateral AM to IBD - need your advice

I'm currently a 3rd yr analyst in AM at a BB and have been interviewing for a lateral move to our IB (industry coverage). After the interview process I was offered an opportunity to join as either a 1st or a 2nd year (up to me). Curious to hear you guys' thoughts on whether you think I should start all the way from scratch and go with the 1st yr offer, or if you think it's doable for a non-IB background to straight into 2nd year at a BB (had relevant experience in AM, but definitely not the same job). Also curious to hear your thoughts on which move is more strategic as it relates to buyside recruiting down the road.

Thanks

Comments (51)

Dec 6, 2014

How did you land the offer? Did you network or was it more or less provided to you?

Dec 7, 2014

There was an open position so I applied.. Went through two rounds and then a superday

Dec 7, 2014

Are you sure you wanna do this? Why banking? What products/industries did you cover in AM? And what is your ideal buyside job? Im guessing you are just doing this coz the money sucks?

In your shoes, I would go in as 2nd yr analyst, and consider immediately applying for MBA if you are still confused about what you wanna do with your life.

If you are at an AM firm that people have heard of, you are probably better qualified than most for other buyside jobs. The exception is PE - but an industry group in IB wont help you get into PE at all anyways.

Dec 8, 2014

GS TMT/FIG would beg to differ....

Dec 7, 2014

I'd like to go PE or HF in long term. My current role is more generalist and has limited exit opps. The new position will broaden exit opps which is why I am doing it - money wise it is almost the same as I am getting paid now. However, my concern is moving in as a 2nd year gives me shorter time to potentially recruit into PE/HF as associate promotion would be only 1.5 yrs away.. my understanding is that PE/HFs rarely takes IB associates, most hiring is done at analyst level.. Is this correct?

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Dec 8, 2014

OP, if you are interested in PE/HF and aren't in a rush/won't mind working in IB I'd personally recommend going in as a first year analyst (that's likely what I'd do anyway) - although comp will be lower, you will have less pressure on you and will have more time to develop relevant skills etc, and more importantly more time to get staffed on relevant/good deals that will help you move to the buy-side. For example, if you come in as a 2nd year analyst and aren't proven, you're not going to be the guy they go to for any important work...

Dec 8, 2014

bump please

Dec 8, 2014

bump

Dec 8, 2014

I worked at a top BB's AM this past summer and realized that it is def possible as 2 guys from my desk in recent years made the switch (one to research, one to IBD). It's definitely an uphill battle though, and both worked very hard to do it. One went up to associate on the AM-side, and on his switch to research had to lose his associate title; it took him a few years and lots of preparation. The other was an intern and went through the formal process for IBD for summer interns in AM and made it (although I heard this is rare, and voicing to do so can jeopardize your FT-offer to AM - so the Consensus was that he gambled).

I personally made it into ibd, but at another firm. It actually surprised me that I was able to tie down so many interviews. Regardless, I think it also depends on what your job function is at the AM; I was in research so I got to learn a lot of modeling/skills relevant to IBD that I was able to talk about during my interviews. I know other people who didn't fare so well that worked in groups that did not entail much financial analysis. Something that did interest me during my time over the summer though is that a ton of management at our specific AM came directly from the IBD - so if your'e a stellar analyst in AM, it was communicated that management would vouch for you if you planned on moving over.

Dec 8, 2014

Hmm, I figured this wouldn't be an easy feat...thanks a lot for your input!

Dec 8, 2014

anyone else have input?

Dec 8, 2014

No-one?

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Dec 8, 2014
TrollExtraordinaire:

step 1. learn proper punctuation.

step 2. fuck off.

seems like you need a lesson in etiquette

Dec 8, 2014
TrollExtraordinaire:

step 1. learn proper punctuation.

step 2. fuck off.

seems like you need a lesson in etiquette

Dec 8, 2014

bump

Dec 8, 2014

I know several people from my BB AM analyst class that have made the transistion, both internally and externally. Of course they were top performers and it took about 2 years of working in AM. But it can for sure be done.

Dec 8, 2014

Depends on firm.

Dec 8, 2014

you want to work 2-4 years in AM then go into ib as an analyst?? or do you mean post mba?

Dec 8, 2014

more pertinent question: why would you want to? If you're at a decent AM firm (nb not PWM), there is absolutely no point in moving from the buy side to the sell side, when everyone in IB is trying to make the exact opposite move. The hours are shorter and the work is hugely more interesting, and the best portfolio managers make as much as any I-banker. Despite what some people on this board will tell you, if you're on the right desk it is also perfectly possible to move over to hedge fund land should the feeling take you.

Dec 8, 2014

I do feel confident though as I was selected to interview with Goldman for their summer analyst position in PWM for this current summer and was invited to the Super Day before the event was cancelled at the last second.

This was without the current BB AM internship and very similar gpa so I am obviously in a better situation than I was previously.

Dec 8, 2014

keep working hard and adding value and get your bosses to notice - that'll help a lot.

Dec 8, 2014

at the Asset Management firm I was at this past summer they built valuation models like crazy. I'd imagine if you have a skill that they won't have to teach you, it would be a plus for an applicant.

Dec 8, 2014

Blackstone, or BlackRock? Very different. Also, in what kind of roles? If you were in research (which is THE place to be at AMs), that will definitely make people look at your resume.

Dec 8, 2014

BlackRock***. And yes both research

Dec 8, 2014

anything is possible with networking. doesn't really matter where you've interned but it does help

Dec 8, 2014

create resume on razume and post here......there's not enough info to give meaningful advice

Dec 8, 2014

First of all, stay put at your current job...don't be tempted to quit. It's a lot easier to find a job when you have a job.

As far as switching from AM to IB, your best shot is utilizing your network (alumni, family, friends, etc). You also need to start crafting your "story" - what in your past experiences has lead you to pursue IB. Have one or two specific examples from each of your internships and current job. It's really all about telling that story well.

Also, I highly recommend you take a financial modeling prep course like BIWS. This will help you a lot in interview prep from not only a technical standpoint, but will also give you something to weave into your story (ie; I am interested in IB to such an extent that I proactively took a financial modeling course...yada-yada-yada).

Finally, be patient! It's not an easy transition to make, but keep plugging away at it.
Hope this helps.

Dec 8, 2014

With 16 months experience you would need to go to b-school then apply for associate roles. If you're ultimate goal is the buy-side..then stay where you are. It's do-able to move from a fund like Wellington to a HF given that you at least have the CFA designation, or sometimes PE (which seems more rare). But if your goal is something more strategy oriented like CorpDev, then you're gonna need IB experience. It's easier to 'try your hand' in banking when you're just out of school, but to get in later in the game b-school is generally the only option

Dec 8, 2014

Define you being in am and why do you want to work double hours

Dec 8, 2014
shorttheworld:

Define you being in am and why do you want to work double hours

Well I guess when you're still a junior you make more money in IB than you do in AM + IB gives much broader exit opps whereas AM exit opps are more limited. Those are 2 good arguments to make the switch I think. Of course there are also enough arguments not to make it.

Dec 8, 2014

I'm with shorttheworld... why work double hours for the same comp trajectory? If you're really one of those people who just gets off on 'doing deals' and you want to be a career banker, than go for it, but otherwise I think you'd be much happier in AM.

Dec 8, 2014

Thank you for the help :-)

Dec 8, 2014

OP, this is all about what you want to do in the long term. If you don't feel you have actual passion for AM I would make the switch to IB because it gives much broader exit opps. If you actually enjoy your work in AM and can see yourself in this business for a long time just stay.

Dec 8, 2014

Makes perfect sense, thank you :-)

Dec 8, 2014

Bump

Dec 8, 2014

//www.wallstreetoasis.com/blog/my-biggest-career-mis...

why do you really want IBD? the money? working in AM now I can tell you the internal mobility is very high and the good research analysts, PMs and sales guys make as much dollar as the IBD guys especially in this godforsaken market.

Dec 8, 2014

Not sure how i missed this until now. Already realized this, my friend. Sometimes you just have to pull your head out of your ass.

Thx

Dec 8, 2014
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Dec 8, 2014