IB to F1

The most recent F1 grand prix in Austria still amazes me every-time i think about it due to the amount of intensity in each lap (Max Verstappen should have came third btw) and lack of failure that is required by not only the driver but their team to please sponsors and investors.

The fast paced , high stress that drivers experience when going 200+mph on a straight and turning into the corners at 90 mph+, at times parallel to each other made me think of how similar it is to investment banking or at least what i have read about IB so far. I am referring to the mental determination that is required to overcome long hours and keep the focus and concentration when completing tasks regardless of whether it is enjoyable or not.

I was curious if anyone has any insight if they have ever heard someone transition from an Investment bank to a F1 team , for example BAML to Haas, Rothschild to McLaren, BNP Paribas to Renault etc.

 
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My alma mater sends loads of individuals to both BB IBD and to the big 3 F1 (Ferrari/Mercedes/McLaren) teams. Ive networked with some of the guys who have transitioned to F1, and they said the key is getting strong feedback from the MDs (doesn't just apply to PE ship jumpers, all powerful people know each other across all industries). Further, you really need to hammer home those technicals. Everyone knows IB technicals are easy; regurgitate your memorized answer that you don't fully understand when asked to explain a DCF, calculate IRR/FCF, walk through the debt tranche turns in an LBO, and show the interviewer you aren't too beta to hold eye contact and boom, FT IBD offer. But F1 technicals are truly for the rare breed; one must know the degree at which to turn during rain and snow in various climates, at what temp the engine overheats at, whether or not you need to turn left or right at every single bend in the road (the last one is where most F1 candidates drop the ball). Anyone can sit in a $5000 chair in an air conditioned office while seamless hooks up dos toros/chipotle, but few can manage sweating balls in the summer sauna that is Sao Paulo during the Autódromo José Carlos Pace.

 

Taking your question seriously as I need a break from this Series 63 studying and I'm a huge F1 guy. Sadly there's not a lot of money in F1 if you're not a top driver or team boss. Sure Lewis/Vettel/Verstappen/Ricciardo might have 8 figure salaries but people like Ocon, George Russell, Alexander Albon probably aren't making much more than a 1st/2nd year IB analyst. Now going to somewhere more plausible, such as corporate finance or project management, starting salaries are still going to be low like around 45k euros. The better option with more pay would be consultant/banker then going to corp dev/corp finance group of a direct F1 company like Red Bull/Daimler/etc. (more likely) or a sponsor like Phillip Morris/Petronas/etc. then making your way up the corporate ladder til you are like VP level. Then you can start asking if you can be involved with the F1 side of things, and make your transition over there. This is how the old team boss of ferrari, Maurizio Arrivabene got his job. This option is probably really only available to European consultants or bankers by the way.

 

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