Why is it so difficult to get into finance as a middle-class kid

I am a European buy-side professional (€2b+ fund) with 5 years of experience in finance. I believe my career is on a good track and I am excited about my future. Yet, I couldn’t help but write down my thoughts (which might be useful to someone) about why is it so difficult to make it into finance (especially front-office IB/buy side) as middle/working class kid (which seems to be a recurring topic).

My background: I am far from being a working class guy. My parents had essentially state jobs (my father is even a regional manager), so I could afford a target (private) university (c.€70k cumulative tuition). My family was certainly not elite in the Southern European secondary city where I grew up (I could understand the difference between my family and the ones of lawyers, doctors, local entrepreneurs), but life has always been comfortable. In a nutshell, I never felt poor before starting my career in finance… [I am sure there is a similar quote in Wall Street but couldn’t find it]

We should make one assumption: you are smart. You have the IQ, the EQ and all it takes to become a hotshot financial professional. But you were born in a secondary city (or even a small town) and/or you are a middle/working class kid. Which obstacles do you face?

1) How do you get to know finance?

1a) Finance is a local matter
This is trivial, but unless you were born in a city with 1m+ inhabitants and/or in a world’s top 100 financial center, chances are there are no finance offices in your city. The closest thing to high finance is the local bank branch.

1b) Only affluent/wealthy people have contact with financial professionals
I always laugh when I read articles/posts of people suggesting to reach out to “family contacts” in order to network with financial professionals. Who the fuck knows an investment banker? To most people in my “old” network, the only thing I can say to let them understand what I do is to mention the stock market (I work in private markets btw).. IB/PE/HF are concepts reserved to wealthy people that have access to investment/private bankers.

How did I overcome this? Well.. pure luck. I saw on TV some Lehman Brothers news in 2008 and I thought that was some cool shit. Walked into a library and “Too Big To Fail” was there.

2) How can you acquire the right skills?

2a) Target Schools
This is a deal breaker for many people. With some exceptions, target schools tend to be private (and expensive). My parents could afford sending me to a target school (although it cost them a large portion of their savings); other parents might not be willing to do it or it’s just impossible for them to do it.

**There is no easy solution to this, except focusing on inexpensive target schools and/or obtaining scholarships/financing. **

2b) Pumping your CV
The fun starts now. Your well-off competitors, during university years, can get easily:

• Bullshit internships from family friends
• Unpaid internships (maybe abroad) -> at least €3k investment
• Bullshit volunteering projects -> at least €3k investment
• University exchange programs -> at least €10k investment

Your parents know accountants at best, or maybe some shit local lawyer… and you live on a budget, so you cannot pretend you care about African kids and or spending time abroad.

How did I overcome this? Some relevant experience doesn’t have to be paid for (e.g. finance clubs), the rest is only hard work. My first internship was in a financial information provider and had €0 salary, only meal coupons. That led me to a better internship, which made my CV stronger.

3) How can you break into finance?

3a) Being “polished”
I am not gonna spend a lot of words on this because we made the assumption you had an high EQ and IQ. But still, you gotta learn how to properly present yourself (CV and cover letter, being articulate, being self-confident and sharp) as well as dress properly etc. All without any guidance. Pretty big assumption, right?

3b) The “cultural fit”
Now this is an absolute joke. Given that overcoming points 1), 2) and 3a) is already difficult, you will start noticing that there aren’t many people like you in this space (the people like you are applying for Big 4 jobs).

Some recruiting events take place in 5* hotels, which you have never seen in your life. They might ask you about markets and stocks, but pretty much the full conversation will be based on who you are and how you spend your time/money. Kinda difficult to say that you aren’t really sure about what to do this summer and that no, you don’t ski/golf/surf.

How did I overcome this? People are living clichés. “I am preparing for a marathon”. “I want to try the snowboard”. “I made a list of restaurants, I can send it to you”. Get smart

4) You cracked the code and you are in, what now?

4a) Unfortunately 3b) still applies. Your colleagues are spending all their money on overpriced restaurants/clubs or trips. Career sites always mention the fact that junior bankers spend all their money, but they fail to mention that is perfectly rational because their salary is pocket money: they don’t need to save cause they have huge savings at their disposal.

In the meantime, you are saving cause you don’t have that much inheritance. You might feel different, but that’s good.

4b) You haven’t made it
This is subtle. After 2-3 years of experience (even less), you are probably making more money than anyone you know from your family and old friends. This is a dangerous thought, because it stops your ambition and hunger. You have already climbed a step in the social ladder. Don’t fucking stop now.

**5) What’s next? **

I don’t really know. Not there yet. I can forecast some obstacles (the ability to create networks to originate deals, being too risk-averse to become an entrepreneur) but I am fully committed to make the most out of my career.

Hope this helps. Keep grinding