Battle of the Coasts: LA vs. NYC

In terms of investment banking, how do the industry and work experience differ among those in LA and NYC?

Interested in operational aspects of this as well - how does deal flow change, what types of deals are more likely to be in LA as opposed to NYC, how is culture different, and is there a way to lateral over between the two cities?

 
CBSWannabe:
Biggest difference is time zones, market opens at 9:30am EST, whereas that is 6:30am PST. You have to wake up VERY early to make the morning commute, but on the plus side you get to leave a bit earlier. Also business attire is more casual in LA. No suits

You're an idiot. Unless you're in S&T or taking an early morning call with NY, you're not working market hours. Guys in SF/LA get in around 8:30-9am PST/11:30-12pm EST. And they're staying til 12-2am PST/3-5am EST.

 
peinvestor2012:

LOL, LA? For IB? Come on. If you can't go to NYC, Chicago and San Fran are plan B for IB (Houston if you want O&G).

I stopped reading once you said chicago. what a joke

 
peinvestor2012:

LOL, LA? For IB? Come on. If you can't go to NYC, Chicago and San Fran are plan B for IB (Houston if you want O&G).

Who the fuck would want to go to Houston for anything else than commodities trading...

[quote]The HBS guys have MAD SWAGGER. They frequently wear their class jackets to boston bars, strutting and acting like they own the joint. They just ooze success, confidence, swagger, basically attributes of alpha males.[/quote]
 
Best Response

Not a huge fan of NYC, but I get the appeal. It's a fun city with a great nightlife and a disproportionate number of successful people. It is the cultural center of the country.

But the cost of living is absurd, and I couldn't see myself raising a kid in the city. You almost have to "keep up with the Joneses" if you live there. Whether it is buying the biggest vacation home or getting your kid into the best prep school, you are constantly competing with everyone else.

I also dislike LA on the whole, although Santa Monica and Westwood are fine. I'm generalizing, but there's something distinctly screwed up with LA's culture. Relative to NYC, there are way too many people who are "aspiring to be X" versus actually having accomplished something. It's almost aggravating to see so much undeserved smugness. The people are disconnected from reality. They are shockingly ignorant of politics, current events...really anything outside of the Hollywood bubble. Again, they think they are cultured, but they aren't.

LA's a ghetto with pockets of wealth. Transportation is hell as well, and you have CA's taxes. You'll be paying for private school because LA's public schools are laughable. I might dislike LA proper, but love Orange County. Would definitely like to live in Newport Beach / Irvine / Costa Mesa.

Of the cities I have lived in / visited, I'd live in Chicago, Boston, SF and Austin/Dallas long term. Maybe NYC, if I had a job I where could commute in from NJ / CT.

 
West Coast rainmaker:

It's almost aggravating to see so much undeserved smugness. The people are disconnected from reality. They are shockingly ignorant of politics, current events...really anything outside of the Hollywood bubble. Again, they *think* they are cultured, but they aren't.

Amen.

"Come at me, bro"- José de Palafox y Melci
 

Most people's west coast operations are in San Francisco. LA is entertainment town. I'd live in SF, not LA (but like the guy above, I'd do Orange County for sure).

NYC will be fun for five or so years, but I can see it getting really old really fast. And I could never raise a family there. Looking for places the other day, I saw ads online for 2,000 square feet for $2M. that can get you a place with four bedrooms and a view in SF.

 
SmokeyG:

Most people's west coast operations are in San Francisco. LA is entertainment town. I'd live in SF, not LA (but like the guy above, I'd do Orange County for sure).

NYC will be fun for five or so years, but I can see it getting really old really fast. And I could never raise a family there. Looking for places the other day, I saw ads online for 2,000 square feet for $2M. that can get you a place with four bedrooms and a view in SF.

You act like the only way to raise a family is to spend $2MM on a home and have a minimum of 2000 sq ft...

 
SmokeyG:

Most people's west coast operations are in San Francisco. LA is entertainment town. I'd live in SF, not LA (but like the guy above, I'd do Orange County for sure).

NYC will be fun for five or so years, but I can see it getting really old really fast. And I could never raise a family there. Looking for places the other day, I saw ads online for 2,000 square feet for $2M. that can get you a place with four bedrooms and a view in SF.

False. Moelis and Houlihan are HQ in LA. MS LA is a powerhouse, as is CS LA (arguably CS best office in US) and Citi LA is also metals and mining and does HUGE deals that they dont do in NY for metals/mining.

Canyon Capital (top 20 hedge fund in US), Tennenbaum, Ares, Gores, Oaktree, Platinum, Leonard Green are also ALL HQ in LA.

Sure SF has tons more, but there is still plenty of sell side/buy side (PE, asset management & HF) shops in LA- aka not just 'entertainment' town. If you say you wont live in LA then you clearly havent seen Beverly Hills, Palisades, Westwood, Santa Monica/Venice, Bel-Air, Holmby Hills etc. etc. Tons of affordable apartment/condos and upscale pricy homes here.

I don't throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought- GG
 

This depends on what you are covering and the bank you are working for.

Regardless of all the people that say you get a similar experience regardless of geography, I still think being at the headquarters of your company is beneficial, if only to be at the center of the chaos.

That said, I would say MOST of the time, it's more beneficial to be in NYC because most banks will have their IBD based there. But if you work at a place like PIMCO, it would be hard to make the argument that their NYC office would give you a better experience over their Newport one.

 

The salary and bonus differential between various offices are typically very marginal. Your standard of living will be more or less comparable at all the major cities, to the point that you shouldn't use it as a consideration when choosing which city to live in. I'd suggest choosing based on which city you like best and where your friends are going to be after graduation.

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 

Average rent on a one bedroom in a nice area is at least $1,750 now. Cheaper than NYC, but then you have to own a car and insurance is at least 2x times the national average, not to mention higher gas prices. LA has no city tax, but state tax is 9.3% of anything above $50k, plus lower rates below $50k.

Cost of living is not substantially lower, the expense buckets are just different.

 

CS / UBS LA guys get bigger signing bonuses for full time --

Also, the bonus pool in the offices are more top heavy - more first tiers(ie. 2006 bonus had all analysts in the first tier, 2005 same.)

This is most likely a result of the analyst getting raped rather than being in LA tho.

 

Westcoasting, hows the life of an analyst out on the west -- any different from ny? seems like you'll be meeting a lot more ppl outside of banking... which may be a plus

 

The LA offices that are good (UBS, CS) are also known to be sweatshops, and have both kind of passed their prime. Moelis moved on from UBS and brought some of the heavy hitters with him. CS LA is still really strong - they build all their models from scratch and place well with PE firms on the west coast.

 

hahaha. take it easy. i will properly answer ur question.

1) NYC is def more expensive. I mean an apartment in nyc is like more or less half of your paycheck. LA is cheaper, but its still more expensive than an average city.(and depends where in LA)

2)Lifestyle - NYC and LA nightlife are both awesome and for family, i think LA is still better. i mean the weather is so much better and there are a lot of family things to do (six flags, beaches, golf courses), BUT be prepared to drive a lot in LA and to be stuck in traffic jams for hours.

3)BB pay- ovbiously nyc gets bigger paychecks. Afterall, its where all the actions are happening.

4) i don't know about exit opps, but i am guessing LA has better exit opps. LA has the largest economy in the states. you can always move to wealth management and play golf with your big shot clients.

haha hope this helps.

 

dude i wasn't recommending him to go to LA. i'm just simply analyzing what he was asking. Obviously, NYC is where u need to be if you want to be successful and rich. Hes asking about fun/family balance and we all know that its pretty tough to have that in NYC.

 

I appreciate your answer. I am really leaning towards LA for some of the points you mentioned. I would rather take a pay cut for some piece of mind. However, how big of a pay cut are we talking about?

Also I have tried the search function many times before posting this topic, but could not find it. If you have a link to a previous post, i would really appreciate it.

 
itsanumbersgame:
Considering a big move.

Can anyone that has lived in both cities (or just wants to chime in anyways) give their thoughts on why they like one over the other (you may have been more junior in one city so try to exclude any negative feelings from that that).

For context: I am someone that enjoys different neighborhoods, being outside, being active, architecture, comfortable weather/no humidity. Went to NYU for grad school. Junior level, points made reflect a more general sense of the daily grind/environment, which can be interpreted differently for everyone.

Whether or not you have a family, or may have one within 5 years has a huge impact. Its generally much easier if someone has a comfortable lifestyle or can just fork over money in New York to make it more comfortable.

Many people that move from LA to NYC fall in love with architecture & the transit bc you don't have to focus on driving/traffic. However, having lived in both cities (LA before NYC, now back in LA) I will gladly spend an extra 20 minutes with nothing but sun above me and a/c or ocean breeze keeping me comfortable. Nothing is worse than the subway in NYC during the summer (think: furnace) and in the winter when its the cold hurts your face.

Unless someone's career strictly needs to be in New York, LA may be a better long term option due to being an large urban city and nice weather. Cost of living seems is relative to New York, but all of that is totally variable depending on lifestyle. Living in Brooklyn is great, but a couple weeks of blistering cold weather and the daily grind to the city does actually get tiring for some. I loved NYC (I grew up in a very rural area), and if it wasn't for my wife I would still be there. I used to be so into the urban nature and density of the place, that I would travel to other large cities (Philly, DC, Boston, LA, etc) and balk at them due to how much smaller they were. However, after living in New York it didn't make a difference because it actually does get tiring being in Midtown all the time. The intimacy with walking in an urban city all the time is certainly a main draw and unlike no other.

But since being back in LA, I am much happier than I thought I would be due to having access to virtually any urban environment I want while enjoying 70-80F sunny non-humid weather every single day. With that said, I have a friend who grew up in LA, moved to NYC around 30y/o and when looking to relocate back to the west coast -- he ended up staying in New York. Transit/traffic and his network had a lot to do with it. He is also single, and doesn't have a family though. I thought my wife was crazy when we moved to NYC and hated every minute (half of its aspects) while living there. Granted, we could not afford to throw money at making our life more comfortable though. She hated having to commute from the Upper West Side to Flatiron during rush hour on the train (which is an insanely easy commute by New Yorker standards). She would have rather been in her own car, on the 405 or 10 while listening to music and not having people rubbing against her at rush hour. I didn't mind as much, but it was brutal in summer due to the temperature. I now understand after moving back to LA, and I tend to agree with her. Rather than commuting from the suburbs of say Dallas/FW, etc -- commuting in a sprawled environment like LA is still rough, but everything else LA offers offsets it. Traveling back to New York is great, but I happily get back on the plane to LA. Having grown up in a rural area in the south, I could never live in the 'burbs while commuting (even with kids) because its too slow for me. LA is the perfect middle ground for me. If folks don't like driving/parking etc in LA...Uber/Lyft. It won't cost that much more if you don't have a huge car payment, insurance, gas, parking, maintenance, etc. This is why I own my modest late 2000s (luxury brand) SUV I picked up for a little over 5 grand in Philly before making the cross country trip to LA.

Urbanism (many types) + Ocean & Mountains = sign me up Los Angeles

The general grind is much different. Different for everyone. 4 seasons in NYC is definitely something to experience if given the chance. After moving to NYC from LA, I was swooped off my feet with the efficiency of the city and the sustainability aspects of the city in general. However, while that remains true, LA (for me at least) is a much more sustainable long term environment I could see myself living and growing in.

 

110% agree with comments on subway during summer, hint hint my username. the subway during the summer, especially during rush hour, is crazy... packed like sardines (arms at your waist b/c no room to raise them, even if you wanted to scratch your head - its that packed). winter is insane i'd say, having experienced hurricane sandy and the recent major snowstorms. fun, yes - when you have the day off. walking to work in the winter is physically painful with wind (which will happen b/c of the buildings). good luck with your decision OP....

 

One thing I'd point out as someone who moved to LA while my friends moved to NYC...LA is a lot better place to move if you already know people who live there. Coming in without knowing many people makes it really tough. Due to it's sprawl, making good friends in LA can take years versus months in other cities. Getting drinks with coworkers after work becomes more of a one drink and done type of deal due to everyone needing to drive home. And a large chunk of the working professionals in the area come from USC and UCLA, or grew up in LA, and already have their cliques from college.

LA is a lot more livable when you are older if you are a high earner as you can usually live in a house that is close to where you work (unless you work downtown). You won't need to commute over an hour to the suburbs. NYC can be more livable when you are younger, live in the city, and can walk to your friend's apartment or to the gym or to the bars.

When you are younger, I don't think the cost difference is very big. I pay $500-$750 less per month for my apartment than my friends in NYC, but my car costs me $300-$500 just between insurance and gas. Add in a car payment to that, wear and tear (replacing tires, brakes, etc. really adds up) and I'm right where my friends are. The difference in rent can become more noticeable when you upgrade to a nice 1 bedroom apartment versus living with roommates.

LA has a larger variety of things to do and it's easier to escape the city. You can go to bars/clubs/nice restaurants, go hiking, hang on the beach, drive to Vegas or drive to the mountains in winter to go skiing. NYC is very limited to city things (drinking/eating) which can get expensive. But in that regard, eating/drinking in NYC is way more fun than in LA.

LA weather is amazing, but I think it can get pretty boring here in winter. While you occasionally get a nice 80 degree day in January, don't expect it to be 70-80 and sunny on the beach in winter. It gets cloudy a lot and chilly by the beach. Since the city revolves so much around hot sunny weather, a lot of the activities become limited in winter (no more pool parties, beaches die down, etc.). I usually travel to NYC a lot in winter as I think it's a lot more fun (I'm sure my perspective might change if I was living there instead of going for the weekend then heading back on Sunday and walking out of LAX to a 65 degree day). But once spring rolls around, you will forget NYC even exists until summer.

 
PE230:
One thing I'd point out as someone who moved to LA while my friends moved to NYC...LA is a lot better place to move if you already know people who live there. Coming in without knowing many people makes it really tough. Due to it's sprawl, making good friends in LA can take years versus months in other cities. Getting drinks with coworkers after work becomes more of a one drink and done type of deal due to everyone needing to drive home. And a large chunk of the working professionals in the area come from USC and UCLA, or grew up in LA, and already have their cliques from college.

LA is a lot more livable when you are older if you are a high earner as you can usually live in a house that is close to where you work (unless you work downtown). You won't need to commute over an hour to the suburbs. NYC can be more livable when you are younger, live in the city, and can walk to your friend's apartment or to the gym or to the bars.

When you are younger, I don't think the cost difference is very big. I pay $500-$750 less per month for my apartment than my friends in NYC, but my car costs me $300-$500 just between insurance and gas. Add in a car payment to that, wear and tear (replacing tires, brakes, etc. really adds up) and I'm right where my friends are. The difference in rent can become more noticeable when you upgrade to a nice 1 bedroom apartment versus living with roommates.

LA has a larger variety of things to do and it's easier to escape the city. You can go to bars/clubs/nice restaurants, go hiking, hang on the beach, drive to Vegas or drive to the mountains in winter to go skiing. NYC is very limited to city things (drinking/eating) which can get expensive. But in that regard, eating/drinking in NYC is way more fun than in LA.

LA weather is amazing, but I think it can get pretty boring here in winter. While you occasionally get a nice 80 degree day in January, don't expect it to be 70-80 and sunny on the beach in winter. It gets cloudy a lot and chilly by the beach. Since the city revolves so much around hot sunny weather, a lot of the activities become limited in winter (no more pool parties, beaches die down, etc.). I usually travel to NYC a lot in winter as I think it's a lot more fun (I'm sure my perspective might change if I was living there instead of going for the weekend then heading back on Sunday and walking out of LAX to a 65 degree day). But once spring rolls around, you will forget NYC even exists until summer.

All of this.

 

They both have great and diverse nightlife, it's just different. I'm more partial to the LA nightlife personally, but that's mostly because NYC, while amazing, just isn't my style. It's kind of odd considering I like the people in NY more, I guess the atmosphere is more my thing in LA (a bit more laid-back).

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

This has to be a joke. We're comparing LA nightlife to NY? It's not even a fair comparison.

"For all the tribulations in our lives, for all the troubles that remain in the world, the decline of violence is an accomplishment we can savor, and an impetus to cherish the forces of civilization and enlightenment that made it possible."
 

This has to be a joke post if you've lived in both cities.

NYC wins by a country mile: 1) people drink aggressively 2) you can go out 7 days a week 3) no worries about DUI's because everything is close 4) you have an extra 2+ hours to party (California ends at 2am) 5) you've got significant population concentration

If you're not into partying and enjoy day time activities more then you would like LA as your personality is more mellow and not party centric. But to compare the night scenes is a bit like comparing the NBA to the D-league.

 

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