To Invest or Not Invest - Help Deciding Offers
Hi Monkeys,
Have a dilemma here, I am an IB Associate (analyst promote) in an industry group working at a BB right now at a 2nd tier city. Have 2 offers on hand and would like your input:
1) Internal transfer to 1st tier city working in the same group (bigger everything - clients, deals, team, etc.)
2) Investment fund that covers my sector in a 2nd tier city
I've always wanted to work in PE though given the sector I cover, it's not really real PE per say because this sector doesn't do LBOs (am sure you guys can narrow it down). Following are the pros and cons I've listed and I would like your input into what you think would be best for my career progression. I do not have an MBA.
Option 1 - Internal Transfer (same industry group, 1st tier city)
Pros:
- Get a chance to work in a 1st tier city
- Bigger clients, bigger deals, bigger team
- More opportunities if I want to jump/lateral to a different bank and arguably to a different industry similarly to an investment firm
- Pay relative to Street
Cons:
- Mid-level Associate and still 'stuck' in banking
- Hours are going to be worst than what I'm experience now given 1st tier city and the nature of the group
Option 2 - Investment Fund (same sector, 2nd tier city)
Pros:
- Become more well-rounded within the industry
- Learn intricately how investment process works
- Get a chance to be on the other side investing in things rather than selling junk
- Also better hours since I would be the 'Client'
- May eventually lead to more opportunities within investing (and potentially hedge fund opportunities?)
Cons:
- Significant pay cut compared what I'm and will be getting
- Still in a 2nd tier city, albeit a higher end one compared to where I'm located
Decisions like this become very easy if you have clear career goals. The answer would be the path that puts you closer to achieving your career goals. It's hard to provide advice when I don't understand your goals (personal and professional). Can you provide more color on where you desire to be 5 years from now? That will make it easier for folks on this forum to have an opinion on YOUR life. Otherwise, anyone who has a view with this little info is probably thinking more about what they would do instead of what you would/should do.
Thanks 'I Invest'. I didn't want to provide a clear statement of my end goals because I think it might be a no brainer but I want to hear more about other people's thought processes.
Professional goals couple years down the road would be understanding what to look for to become a good investor in the industry, the thought processes, the steps you arrive to go to a recommendation and how to take advantage of arb opportunities in the space (potentially moving to a Sector focused hedge fund in the long run). I guess as with any sector focused fund, it takes a bit of time to realize whether the investment you've made is a good one because in the end, it depends on how it grows couple years down the road and ultimately when you realize it.
Personal goals would be working in a 1st tier city mainly because there are lots more opportunities and given the industry, some people see it as a badge of honor if you've worked at a 1st tier city. Ultimately, I think I would need to do an MBA to progress given I come from a non-target.
If I go to the investment fund, would probably give it 1-2 years before doing an MBA. If the internal transfer, I am afraid it might be relatively difficult for me to move on to the investing side given my level (mid-level Assoc) and if I give it a year or 2 more, I'd be VP level... at that point, going to do an MBA may pose a far greater opportunity cost for me in terms of $, time, level I'd be at if I go bank to banking. Frankly, I haven't seen a lot of post-MBA getting into the investment side if they didn't have prior experience, similar to PE, however, I do understand MBA is a career change choice, so might also leave some opportunities for me to do that as well?
To make things more complicated, I have a family to take care of the pay cut moving to the investment fund would 'hurt' me more than if I stay in banking. I think somehow I've drawn myself to the 'golden handcuffs' analogy which I never really believed in before.
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