I'm currently pursuing a career in Private Banking and would like to hear any insights into the associate programs at Goldman vs. CS vs. JP.
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Goldman and Credit Suisse are commission based positions (after a few years) and you can generally choose what you market to clients/prospects. JP Morgan is salary and bonus and you are expected to market what they tell you to market (you're basically a cog in the machine). This makes them radically different jobs, despite the fact that your main job is selling financial products to rich people no matter where you end up. Another wrinkle at JP Morgan is that your role is different if you are a banker or an investor (banker brings clients in the door and the investor gets them to do more business once they're in). The clients are almost always your clients at GS and CS, so you can take them with you if you leave (and get paid a lot for doing so). Not very possible at JP Morgan, the clients are really the firm's clients. Generally, the JP Morgan position will have a lower compensation ceiling (it's still pretty good, but you won't make millions), but substantially less likelihood of failing. Where you should go depends on your risk tolerance and the confidence you have in bringing in clients.
Thanks for the info. I understand the risk with CS and GS - any insight into where people land if they don't continue with private banking after the first couple of years at these firms? I'd assume investor relations roles at HF's, or in Asset Management?
JPM is the tops for PB
SirTradesalot is on point. Having spoken with people from each of these banks and being informed of their structure and payout, I'd lean towards CS. The team I currently work on used to be a GS team and have heard horror stories regarding culture there, not to mention the overwhelming amount of GS product in client portfolios. From mutual funds to PE and HFs, almost to what JPM does.
Granted this is one small opinion others at GS I've spoken with say differently. I'd still be a bigger fan of GS or CS from a pay structure stand point.
If you think you can get clients (ie...have a big rich network), then the CS and GS would be better for you. If you want to be in the space and not have as much pressure to get clients, JPM PB is the way to go, as there are a lot of non producing roles...but at some point you will have to prove yourself in front of clients or you will be gone, but former JPM pb people are usually able to land solid roles after leaving the firm (relative for pwm/pb). Can't speak for GS or CS. As said above, jpm will nationalize your clients...so not good for you if you brought them in, on the other hand, as bankers leave/quit, a book can fall into your hands, also, if you are really interested in the markets and investing, being an investor at jpm pb is a pretty sweet gig, pay is not amazing, but its not bad and if you are good can be very lucrative / lead to great things. JPM PB is very structured, which can be good or bad. For me, I don't like it because I wanted to be an advisor and run my book my way and on my own time - not be required to deal with all the politics of a structured place, HAVE to show up for meetings, ONLY get paid on growth and new clients, rather than in perpetuity and have no exit value of your book etc...But the name/structure brings in lots of clients, plus, as an associate, it is a good place to learn how we manage some of the richest and most powerful people's money. I worked on a team that focused on HF/PE ceo / founder/ portfolio manager money. We managed money for people who knew a lot more about the markets than we did, haha, but it is different. Portfolio theory vs absolute return mandates or private equity. Good place to learn, but as a producer would not have wanted to be there personally.
I know a financial advisor, who works for a small BD, basically runs his own shop. He is good friends with most of his clients, and speaking with them weekly/monthly is just like talking to an old buddy. He loves his job. He works a lot, but VERY flexible and good pay. It can be tough when the market goes south...but really he just helps his client's invest, rather than sell them sh*t, so they are very responsible for the investment decisions even though they usually just follow his rec'd. He told me he was able to build his book through a strong network of former colleagues and college friends. That's why it is very important to network outside of Asset Management and especially outside of finance. Being introduced to somebody by a financial advisor...doesn't help, because that person in their client. You need to meet people who don't already have 10 financial advisor friends. Which is why many financial advisors are older and had long successful careers in other areas of finance, or outside of finance prior to becoming an advisor.
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This. Having networked/really looked into the Private Bank at JPM, if you get into their analyst class (NY has the largest) you're set.
Second this. If you're looking at b-school I hear JPM PB is pretty solid considering its FO..
Very interested in this as well. How difficult would it be to transfer from BB Ops to JPM Private Banking?
If you're in any sort of Asset Management/private banking ops role, you have a much better shot than someone just doing processing work in another line of business. However, it depends on a lot of different factors... it's really up to you to make it happen. If you're at JPM now look internally and start reaching out to people. See if anyone that you work with has contacts within the PB and go from there. If they'll listen/give you time that's half the battle.
edit: pursuing the CFA, knowing all the products, and even listening to the daily calls will definitely help as well
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