Is Investment Banking No Longer a Prestigious Finance Job?
It seems to be the case that the high-performers at target schools no longer want to work in I-Banking. There was a time where I-Banking used to be the epitome of success for bright finance students, but now it seems more like the fallback for those that couldn't make it into PE, S&T, HF, AM or MBB.
The salaries at senior levels are no longer what they used to be, while those that go to work on the buy-side generally work half the hours and make the same, if not more, money than bankers while also working in a more impactful function. Meanwhile the poor schlups at Morgan Stanley are chained to their desks and when they do go out, being an investment banker no longer carries the same prestige in social functions that it used to, as chances are that you will be surrounded by buy-side bois that render you middle-class at best.
I’ve rarely seen IB as a “fallback” for those who failed to recruit for S&T, AM, or MBB. I’ve actually seen very little overlap amongst students recruiting for those fields, at least at my target school. MBB crowd is very different from IB crowd, which both differ from the S&T crowd.
But what I'm saying is that the IB crowd is getting to be more like Big 4 Audit imo. It's a safe career and very obtainable, but the most ambitious students who really want the prestige/lifestyle don't shoot for IB so much as they shoot for the buy side
Only a small percentage of students at Harvard / Wharton end up at top buy side firms like BainCap, Bx, Silverlake. Don’t kid yourself otherwise. BB IB is significantly more difficult to break into than big 4.
Someone is a little butthurt they didn't land an IB SA position... or is still in high school? I say this because no one who actually works in the industry, or who has correctly made it through the recruitment process, would claim that prestige & competitiveness of big 4 audit = IBD. Nor is an IB career "very attainable" - very impressive and accomplished college students still fail to land SA positions because of how competitive the process is.
Now I'll concede, there definitely has been a slight talent drain and loss of the "prestige allure" of the very best and brightest going into college... but again I highly doubt you're familiar with the industry because the bulk of this loss isnt from students wanting to do/recruiting more out of undergrad for PE, S&T, HF, AM, or MBB - it's more from tech engineering/coding positions offering another career path with similar compensation and "prestige" with better hours, culture, and lifestyle.
Buddy literally has a username shitting on IB? IB must be living rent free In your head because you couldn't get a job lol
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I would argue that IB is certainly not a "fall back" for those who didn't get offers in S&T or AM, but perhaps it is true to an extent for PE/HF. Many of my FT friends who are bankers didn't apply for a single S&T slot, regardless of the firm. At the same time, IB is thought to be the best stepping stone for those buy-side positions, and this skill set will serve them quite well down the road. So, there are oftentimes individuals who get offers in PE/HF that turn them down for IB positions due to an effort to develop the be.
If you are stating that you feel IB is now seem as less prestigious than buy-side jobs, I would argue that it may never have been. If you feel that it once was, can you explain in what manner a sell side role would surpass a buy-side position in terms prestige? I highly doubt being an I banker was ever preferable in terms of hours or comp, unless you compare an associate's salary at a LMM PE shop to that of a senior associate at a BB in a top coverage or product group.
What I'm saying is that I kind of just throw BB IB into the Big 4 category as far as prestige goes because more PE firms and HFs are recruiting undergrads earlier and more aggressively.
Why the fuck does it matter if its "prestigious"? It is a job that can pay 150k the first year out of college and 500k before you're 30. Who the fuck cares if your friend gets a hard on for where you work. Just do what makes ya happy, wether that be an IB slave or a ski bum or a music festival raver. No one gives a shit.
It's funny how people only say this when they're on the less prestige end of the jobs being compared.
Are you in High School by any chance? Freshman in College? I have never heard anyone in PE/HFs (the only comparable options you mentioned) compare IB with Big 4 Audit. In any case, focus more on what you’re interested in and less on what other people think.
Besides the fact that this is being looked at the wrong way (prestige), your post is horribly misinformed.
I'm currently at a target school and just landed a full time offer in REPE. The really bright students here do not strive for IB. They want to either work in PE, for a fund, or do quant/tech work, or something else. IB is to finance what Big 4 Audit is to accounting. The easily obtainable, risk-averse option.
I hope IB is not preftigious anymore, so we don’t have to see these kind of threads ever again.
What's the aim of this thread? Seems like you already landed a job in PE, and now you just want to argue with people that you're better than them. Kids at my target go to the buy side also but don't jerk themselves off about it
It's winter break and I'm the only one on campus so I brewed myself a hot coco and figured I'd get cozy and start a flame war for amusement. So far the results have been outstanding.
In that case, more power to you bud. Cheers
Is IB still the most legit/prestigious aim out of undergrad? (Originally Posted: 04/05/2015)
I'm lower-born and just want to make solid coin and have some occupational prestige. I have been accepted to a handful of prestigious colleges. I have no idea what to study. It seems like everyone from an Ivy wants to end up in San Francisco. I find it hard to believe they all want to be computer programming grinds. What's the new hotness?
I would say hedge funds, private equity, and consulting.
Most of the people you are referring to are probably interested in working in a business role at a tech company like Google/Facebook/etc. That seems to be the soupe du jour these days, while consulting, pe, and hf are also popular (as per usual) as someone else mentioned.
This surge of interest in tech has happened before though - from stalking the profiles of senior people in various upper-level roles I've noticed a lot of these people have worked at IBM earlier in their careers. I imagine for their generation, IBM was the Google/Apple.
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