Is MBA or direct promote from analyst the only way to become an associate?
If someone, for example, did a couple years in equity research covering the energy sector, could they join the energy group of an IB as an associate? Or would they have to start at the analyst level?
Depending on experience level, someone can be hired outside of banking directly to associate. Each bank and situation is different though. Just saying that I have seen it done.
In good times, you could move from equity research to banking. You could also move into banking if you practiced transactional law for few years. Right now, with the economy going sideways, the two paths you listed are the only practical ones.
MBB consultants can lateral into IB - I personally know an MBB guy who switched to MS IBD (this is in Europe) as a VP. He made ED and then switched back, but this was when things were good, so can;t say it would work today ...
bump
Honestly, you just aren't going to know until you try. As others have said, in better times, it would be less difficult...right now, it might not happen.
I've seen job postings for associates that vary from time to time but most require 2 or more years of direct IB analyst experience or an MBA.
One place you might be able to find an exception would be at a bank, or group, that was hiring for a specific sector which happens to have been your coverage area. If you could prove your are capable of coming aboard with little hand holding, they might take a shot if they felt your previous experience could be of use.
Sometimes the whole point of hiring MBAs, almost exclusively, can seem a bit silly but the more I thought about it, the more it seems to me like screening tool. I think IB gets a lot of attention because of the pay and if the banks didn't use the MBA as a screening tool, they would have hundreds and hundreds of people applying just to give it a shot. Most wouldn't know what they were getting themselves into and they would probably jump ship after a few months of hell...which isn't something any bank is really looking for.
If you are seriously looking, and not just doing some mental gymnastics, go to indeed.com and search for 'energy investment banking' and see what you can see. Maybe you find something, maybe you don't.
Regards
Becoming an associate without being an analyst first (Originally Posted: 05/12/2007)
The title basically says it all. Can you become an associate at a well known firm right out of college with your MBA without being an analyst for 2-3 years? If so, how hard is it to do?
I have just completed my freshmen year of undergrad at the University of Nebraska in Lincoln; I have recently decided that I would like to pursue a career in investment banking. The more I read the more I know that this is the type of lifestyle and work that i want to do for the rest of my life; however, at the same time the more I read the more I become afraid that I will not be successful in obtaining a career at a well known firm. That being said, any words of encouragement are appreciated. And thank you to everyone that responds to my question.
Questions answered in order 1. Yes, you can 2. it's hard, regardless of whether if you were analyst before or not. prior experience, in any field for that matter, will prepare you. many of the BBs treat their 1st yr assoc like an analyst for first 6 mo - 1 yr so they'll learn the ropes. there after, it's assumed your maturity and prior work exp will lift you beyond that of an analyst, consequently allowing you to be an effective assoc.
if you want to start as an associate, you need to know that its not the easiest task nor is it the hardest. you need to have an mba, but the top mba schools only take people who have experience of at least 2 years.
however that being said, i know someone who got his bachelors and masters from university of florida and got to start as a 3rd year analyst at a BB. a year later he became an associate...so its possible, but not the norm..best of luck
Do you need to have analyst experience in order to become an associate? (Originally Posted: 08/13/2006)
Lets say I work 4 years or so in corporate finance somewhere (like Edward Jones) and then go to Washington University and get an MBA in Finance (investment banking/corporate finance track) and decide to go into investment banking. Would investment banks hire me as an analyst or an associate?
Yes they would, but most likely the Tier 2 or Tier 3 banks (see post on bulge-brackets)...unless you've worked on some super-pioneering transaction that defines the sector...
I know someone this year from george washington who's interning at Credit Suisse, so BB definitely possible...
People usually describe what's more likely. You can do undergrad at Uconn or UMD or Rutgers and break into Goldman - sure maybe 1 person from each school will do. When people say, you must go to a top tier school to get an offer from Goldman Sachs they simple describe what happens in 99% of the case.
what about someone who practiced law (not M&A) for 4 years and then wanted to break into banking from b-school. is it likely?
Absolutely on both accounts.
Undergrad = Analyst-level MBA = Associate-level
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