I heard from some people that MBA Associates are ‘looked down upon in’ in IB. Is that true?
Just wanted to verify if that’s really the case. Apologies in advance if this is a stupid question.
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There is natural friction between Analysts in their second year and MBA Associates because generally speaking the Analyst is more capable than the Associate, who technically is overseeing their work product. If the Associate doesn't recognize that dynamic and tries to assert their rank superiority, that's when they are "hated".
Aside from that, there is somewhat of a perception that the role of Associate doesn't need to exist and that there is limited value-add for the role. As above, it will depend on who you're talking about. It's all about personalities.
Damn, thank you for the response. How hard is it for a new post-MBA IB Associate, with no previous Finance experience, to adjust and catch up?
I work at a well-known consulting firm and I have seen this play out before unfortunately.
Banks try to get ahead of this by typically pairing first year post-MBA Associates with first-year Analysts, but the key I would say is remaining humble and not trying to steamroll the Analyst. At least in your first year, take the opportunity to project yourself as more of a peer to Analysts as opposed to their manager, and don't be one of the people that dumps work downhill even though you technically can.
By the time you come in, you'll notice that MD's already have Analysts they favor because they've done good work for them in the past, so you just need to start building up that same goodwill, and that can only be done by grinding it out. You just can't hit the desk under the impression you don't have to because you have an MBA (which, rightfully, nobody cares about).
It's a tough dynamic to navigate, for sure.
Thank you @gufmo - this is helpful. As an MBA starting IB recruiting soon, I am just very nervous of the whole IB dynamic and culture. It feels a little different because in Consulting (where I am at), an MBA is almost something people look up to and Analysts like working under MBAs, because they think it makes for better Managers, which anecdotally I have found true.
Definitely different. Investment bankers worship the grind, not degrees and designations. Not saying that's right, but that's how it is. In my experience, nobody ever has any issues with someone that's moved from Analyst to Associate because they've "taken their lumps" and "know how things work". Further evidence that it's the attitude, not the role.
Thank you - I'll keep it in mind while recruiting!
Nobody gives a damn about MBA in IB. The reason people do in consulting is because consulting is full of fluff and BS
TBF IB is full of fluff and BS too, but no one gives AF about someone's MBA.
This is an incredibly uninformed opinion. More than 50% of the world thinks bankers are idiots or greedy people who caused the 2008 crash, and have still not learnt their lessons. Let's please not go around criticizing professions.
Way to make two points and be absolutely wrong about both. Do you think it would be easier or harder getting into IB as an associate, without prior IB experience, with or without an MBA (and the associated campus recruiting)? And what exactly do you think IB does that somehow makes it less fluffy than consulting? They're both advisory-based businesses that pitch for engagements and and such both have a strong element of marketing. What, you think your ability to whip up a sick DCF is a significant value add to the company?
I don’t understand the MBA hate. Some people are just assholes who love going on power trips. Don’t see what the mba has to do with that. I don’t think an MBA makes you smarter by any means, but to say IB doesn’t care about degrees seems like an exaggeration. In the group I’m joining, 3/4 of the associates and VPs have mbas and at least half of the MDs do.
To me, IB recruiting is one giant dick measuring contest. It’s about your undergrad, your b school, your fraternity. You can’t come on here and trash people for being from a non target then post that you don’t care about a degree.
Got it, thank you Summer Associate. That makes sense.
You are speaking to something different - recruiting vs. on the job. Yes, you need a fancy undergraduate degree to get in the door as an Analyst and in most cases you need a fancy MBA to be an Associate. That's about it. If you're a huge blowhard or suck at your job, nobody is going to want to work with you just because you have a Harvard MBA.
How you perform at the desk has little, if nothing, to do with your degree, but you won't even get a seat at the table unless you've checked the box.
Yeah, I agree with what you're saying. I just have a hard time believing that most MBA associates are useless. I don't think an MBA makes me smarter and I would never show up and start bossing analysts around. Some people are just dicks.
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