Thoughts On Leaving MM IB As 1st Year Analyst to Source @ TA/Summit/PSG?
All,
Recently got an offer from one of the larger sourcing-based GE shops (think: TA/Summit/PSG/Level) as a 1st year analyst with a nearby start date. Offer is exploding soon and I have to make the crucial decision of whether or not to take the move. Currently in MM IB and the brand name transition would be immense, and I'm particularly interested in the potential career path from A2A at the firm, where in 2-3 years, I may have an execution role.
To be frank, I believe I have the skillset and a passion for sourcing and the buy-side, and the work I'm currently on has been wearing me out / awfully boring. However, in terms of making sure I don't silo myself for future career options as the considered role would be mainly sales-esque functions, I'm wary of happily accepting the offer. If the ultimate goal is getting into the buy-side / MBA / corp dev, where do you think I should prioritize?
Happy to answer any questions as I could really use some insight. Super stuck right now.
Bump.
I think the key question is whether there's a clear and established path for you to join the investment team. I don't think the sourcing experience is particularly rich in learning or relevant to a future buy-side career so it only ever become attractive if it's supposed to lead to a position on the investment team within a reasonable time frame (in your position, I would think 24 months would be the maximum). There's a HUGE difference between telling you that it may lead to an execution role vs. having a program in place where it's expected that you will transition after a certain amount of time.
Right on; I definitely plan on clarifying whether the path exists for sure or not. In any case, for the sourcing role, do you have any ideas on what typical exit paths would look like? I would assume the investing acumen / general buy-side exposure would still provide tangible leverage as I am highly interested in other roads like corp dev / VC / MBA.
Have a friend who used to work in sourcing at one of the places you described. Said it was a terrible experience with a ton of grunt work (e.g. making 100's of calls) and minimal critical thinking. You're basically filling in an excel sheet of opps for the deal team to actually go after. When he tried leaving - his experience wasn't very applicable anywhere else. His B school interviewer said "You basically spent 2 years making calls? We should also interview a call center guy." He ended up exiting to a $40million AUM PE fund as an associate... If you're at an even decent MM IB firm - I'd recommend not taking the role.
EDIT - He was told that he could move into the investment side after a certain number of months, but that was BS and exceptionally rare
Completely agree with mtnmmnn
I'd also add that it would be helpful to figure out how this path has played out historically. Given the firms you listed, there should hopefully be a reasonable enough sample size to get a sense of what people do after their analyst stint their (i.e. A2A promote, switch firms, change industries, etc.). That can help validate what you're hearing (or not).
As you alluded, the main reason sourcing focused roles are tricky is that you aren't really building a very tangible/marketable skill set for the kind of work that you say you want to be doing. While you might do some preliminary analysis, the reality is that the core of it is going to be done by the investment team. There just isn't that much to work with at the sourcing layer. That's not to disparage the role, sourcing is a key part of the business after all, but it can be tough as a "first job".
Also don't underestimate how hard it can be to source a deal that actually gets done. There's a lot that goes into the process and a lot of places for any individual deal to get de-railed. There's no guarantee that you'll get a deal through.
If you're at a reputable MM IB now, and given that you just started, the job a few months ago, I would consider taking your time and looking at other opportunities in PE/CorpDev, or even at a bigger bank if you're concerned about the brand. You have plenty of time. If you switch now and find that you don't like sourcing/there isn't a path forward, you won't have substantive banking experience to fall back on either.
All that being said, the names you listed are obviously strong brands, and getting promoted to an investing role would be a great plus on your resume. At the end of the day, it's probably just great for some, but not a good fit for others. (As an aside, I've hear culture can also be pretty tough at some of these places in term of competition between junior folks)
This is super helpful. Could I PM you for details on my situation?
definitely feel free
Only do it if a well trodden path to an investing role exist internally...
TA/Summit regularly place into HBS/Wharton. Sourcing is a valuable skill to have especially as you get more senior
Is that based on TA/Summit's specific connections or just general paths from sourcing roles at elite shops?
Both
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