Seeking advice (boutique Investment Banking)
Hi all,
I'm seeking some career advice and thought this might be the place to ask.
Background: California Target School (UCLA, USC, CAL). Currently working at a "boutique" investment bank in CA. Despite it being a boutique, I believe the credentials of my senior bankers speak volumes. Former MD & VP's from a variety of banks including BAML, PJ, GS, etc.
My hours are fantastic. I've been here for MM or BB bank? Obviously the trade-off is work-life balance and loss of culture. I know my gig is good but is a potential move worth it?
3. I have an interview in two weeks with a small enterprise-software focused PE shop. Is this my only legitimate chance of breaking into the buy-side coming from a boutique?
Thank you so much for reading. I genuinely appreciate any piece of advice.
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Really? I guess I have this really negative mentality that I have no shot because I'm competing against a lot of BB and MM analysts. I was under the assumption that PE firms would not even bother looking at my resume.
Not a lot of tech deals at my firm.
In regards to former analysts, one created their own start-up, one lateraled to a lower MM bank, and one went to a PE Real Estate firm.
I am also not hell-bent on PE. Would I have a shot at F500 Corp Dev positions? Thank you so much for your advice!
Assuming the opportunity is there, would you consider staying at your current shop longer term? Banking can actually be a pretty interesting job, but most places torpedo it with poor culture mixed with unsustainable hours. While there may be some branding advantages to going to a larger bank, don't discount the practical positives of your current job. It's easy to take good culture for granted, but it's definitely not universally the case across the Street
1) Regarding exit opps, you may have a harder time with some shops (and likely moreso in the MF range), but don't underestimate how helpful the more senior guys in your group can be. To the extent that they are supportive of you looking for other opportunities, the best thing you can do is actively ask for their advice/help in the process, assuming you're on good terms. Especially with the support of your team and a bit of hustle, there's no reason why you shouldn't have plenty of opportunities
2) I probably wouldn't switch unless you're targeting a specific group for a specific reason beyond just moving to a bigger brand. Think about what you might be interested in doing 3-5-10 years out and what kinds of opportunities are more or less accessible to you based on that. If you think you are interested in staying in finance longer term (and it sounds like you might), then perhaps it makes sense to kill it in your current role and develop really strong relationships with the senior guys. Alternatively, if you want to jump to a different industry or do an MBA soon, then perhaps there may be some branding advantages to a larger bank. I don't think you can really go wrong either way
3) Are you asking if this specific interview is your only chance or if small tech PE is your only chance? Either way I'd say no. With some initiative and perhaps some support from some of the more senior bankers on your team, you should have plenty of opportunities. It's probably fair to say that you'll have better luck with LMM/MM shops but (A) that's not exactly a bad thing unless you're dead set on MF for some reason and (B) the chances you have are more dependent on you than anything else assuming you're in a reasonably reputable place (i.e. have decent deal flow/you're getting valuable experience)
Yeah. I've thought about staying. Again, my work-life balance is seriously insane. We work on quality deals and my seniors are all very chill. Couple weeks back, we all went as a team to a Dodgers game.
Do I really? I'm not looking at MF. I would be happy with any small PE gig. I just have this mentality that PE firms won't look at someone from a boutique. I see PE teams and all I see is former BB and MM analysts. Would also be very happy with F500 Corp Dev but I also don't think I have a shot at that.
Yeah, no specific group or reason in mind. Just "brand" driven to be honest. I also feel bad if I do jump ship now because I just passed my Series 63/79 so they have invested a lot of their time and money into me (1 of 2 analysts).
Again, not dead set on MF. Would be extremely elated with any LMM or MM shop but don't think I have a chance.
Thank you so much for your input!
In that case, I'd recommend staying at least a year, and frankly it sounds like it could be a good longer term opportunity as well.
Once you're in your second year, I think it would be good for you to really evaluate your career interests and talk to one of the more senior guys that you're comfortable with. At some point they either expect to promote you or for you to explore other opportunities, and I think waiting to have that conversation after a year on the job makes sense at boutiques like yours. It shows that you're thinking about it in a reasonable, mature way, without giving the impression that you're trying to leave right after joining
Based on how that conversation goes, what your interests are, and how supportive your team is, try to leverage their advice/help/connections. If you've done good work and they are supportive of you leaving, then they'll likely be open to helping where they can. Obviously don't be annoying about it or expect them to guarantee you a job somewhere, but they can be really helpful in terms of putting you in touch with people they may know or providing recommendation letters, etc
Having a good relationship with your team can offset your concerns about branding and the associated exit ops considerations
If I were you, I'd just stay there. If culture really is top-notch, pay is solid and hours are reasonable, why would you want to leave?
How would your salary progress as you rise through the ranks? If it's substantial and the hours don't dramatically increase (although it's natural that the pressure would at that level), then you should seriously consider revising your idea to seek work elsewhere.
As for the PE thing, might be a bit harder, but as always, networking is king. Whatever you choose, congrats on securing such a great role!
The only reason I would leave is because I feel like my exit opps are limited due to it being a regional boutique. I also don't think I want to do banking long-term. What are your thoughts in regards to exit opps?
I'm not an expert in this, having just started my career in banking as a part time analyst, but here's my 2 cents. Pretty sure you stand a good chance with LMM PE shops. Like I said, networking is king in this game so cast a wide net and see what you end up with. I don't think anything is out of reach for the man that want's something bad enough.
I probably wouldn't advocate all this to your seniors, just in case they take it the wrong way, especially if they've exhausted resources to train you. Then again, what do I know. I'm just giving you advice that I would take myself.
You love your team, have good deal flow, work phenomenal hours, and make great money for a 23 year old. 100% stay and enjoy all that free time and reevaluate in a few years if you still think PE is your destiny. Can't tell you how many buddies jumped to buyside and are just as miserable as they were during their IB analyst years. Count your blessings man - you lucked out with your current gig.
I appreciate the words. Thanks man!
yhslaw
What does "Rabo" stand for?
Some of this may have already been answered, but as someone who started at a boutique before lateraling to an MM and then moving into corp dev, here's my take:
When it comes to exit opps, BBs and EBs clean house. Top MMs have decent to somewhat solid placements, depending on your criteria. I am sure there are some exceptions, but if you're at a "no-name" boutique, I would not expect MF or top MM PE. You're probably looking at some LMM PE, corp dev, fund of funds, IR, etc. Again, I am sure there are some exceptions.
There's nothing wrong with working at a boutique. It isn't for everyone and certainly wasn't for me, but many people enjoy it. I know a guy who is a VP at a tiny boutique, and he loves it. He has great hours, has a lot of say, has a decent salary, etc. That being said, pay is never going to be anywhere close to MM/BB/EB level, exit opps will pale in comparison, etc. $90-$100k all-in for 45-50 hours per week while gaining M&A experience is nothing to sneeze at. You have it good, but if you're looking for more pay, better exit opps, etc., take a look at my lateraling guide.
Probably so.
I hope that helps. I am happy to go into more detail about my year at a boutique if you need or anything lateraling-related. Good luck, and please don't let the prestige of working at a larger bank influence you. Good hours for six figures is amazing (it's one of the reasons why I love corp dev).
Rabo probably means Rabobank. Based on what my buddy is making at a ~10 man boutique where the senior bankers all came from established MMs or BBs, pay can def be higher than $90-$100k all-in but hours can def get to 60+ as well. Still lower across the board than BBs or the top MMs, but not as low or easy as you might think.
Thanks. I had never heard of this boutique before. I imagine they're not at the same level as a place like Lion Tree?
Correct! Thanks for clarifying NuclearPenguins
Thanks for your input. Appreciate it Sil ! Please check your inbox.
You provided a lot of info in your OP. I'd think about taking away some of the detail. Since your bank is small, anyone who works with you would instantly be able to tell it's you.
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