Thoughts on Public Finance?
How is Public Finance compared to the traditional product/coverage groups in IB? Looking through some old threads, it seems like PubFin is in a similar situation to DCM/ECM where it's not really traditional IB. PubFin seems to give limited modeling experience and working with just governments is niche so exiting to PE seems like it would be very difficult. However, hours and pay are still great. Unless you are really interested in public policy, is there any reason to choose PubFin over traditional product (M&A/LevFin) or coverage (FIG/TMT/HC) IB groups?
I use to work in Pub Fin and here is my take: Are you probably ever going to get recruited to go to PE from Pub Fin, Probably not - your best exits are probably going to another internal group.
Granted I will say from my experience Pub Fin is a group that has great WLB, there are probably some late nights, but most of the time you are going to be out of the office by 7pm. That being said you are not going to be comped like M&A, but I found the Comp was very fair and good for the position. If you can stick it out, I think Directors were probably making close to 300-400k and probably working 40-50 hours a week. Top MD were probably clearing 1-2mm.
And the work was actually exciting. I know some people may not think debt is that exciting, but generally overall looking at RFPs was actually somewhat fun for me.
If you don't get to caught up in the prestige game, you can actually do really well in pub fin.
What are common exit ops since none go to PE? Do analysts leave as much as traditional IB? From what you describe, retention seems like it would be higher because of better WLB.
Some of the Exits I have seen include: Government positions (usually in a budget office), Some DCM exits, Some S&T exits, Some Coverage Group exits, MBA, One Med School, Various other Corporate roles. Seen very few exits to PE Credit and PE Infra.
I don't think retention is higher, but the people who do stay seem to be happier with more WLB.
Depends on the group.. if you’re aligned with P3, PE/Infra funds is a real exit op
Definitely an exit op. Just not common.
could you touch a little more on the kind of bank you worked for, when you were in pub finance? boutique, MM, BB? What was your bonus like too?
MM
Bonus was 20% of Base
Hours 35-50 usually right at 40.
left after 14 months for a coverage group at another bank
Just came across this thread. Do you know if Pub Fin groups generally recruit MBA associates? If so, what are some target schools?
CBS had a couple banks recruiting for pub fin. Would imagine they'd come to all of the core banking schools (CBS, Booth, Stern, Wharton)
A few people in my MBA program have started in PF then got their MBA to transition into coverage or M&A banking. They placed really well, many into GS/JP/MS/EVR/Laz type of firms at top groups (JP M&A or GS TMT)
That's great, would you mind sharing what MBA program?
Do you know if it is possible to transition into PF through an MBA program? I currently work in government and want to make this switch.
it is but there arent a whole lot who do it / a lot of jobs. GS and MS hired for public finance from my MBA but that was basically it
Since no universities teach classes on the $4 trillion muni bond market, despite the fact that many of the college buildings, stadiums, and other national infrastructure like roads, utilities, hospitals, schools, airports, bridges, etc. are financed with tax-free muni bonds, entry to this attractive sector has been overlooked. Since municipal finance is largely local, most regional firms as well as the national firms, have public finance offices in cities across the USA. So, unlike corporate bond finance, bankers and analysts in PF can live and work most anywhere to develop business. In addition, importantly, funds raised with muni bonds are generally used for the benefit of the general public by financing utilities, schools, hospitals, airports, etc. And, living and working in a city outside of NYC can result in a better W/L balance. Entry level and senior positions in public finance are regularly posted on firm’s career sites.
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