Leaving Investment Banking - Why and What Next

As the title states, I quit IB and felt that due to the lack of "Leaving IB Posts" I felt that I should share my story with you since I've been lurking on this site for a while. I'm writing this for those who want to leave IB themselves but are holding themselves back and also to younger kids who are even remotely considering going into Banking.

First a bit about me

Graduated from Baruch College with an Economics degree in May 2018 with no offer and only a BS PE Search Fund Internship underneath my belt. I originally wanted to be an M&A attorney but after taking my LSAT in Dec 2017 I realized how miserable I would've been as a lawyer let alone just being in law school. Post graduation I got an internship at an Emerging Markets Brokerage shop as an intern that did a lot of grunt work and worked from there on to their sales desks and build a ton of decks and a ton of reading. In Dec 2018 I was given an offer from a lower middle market boutique IB and an offer from the S&T firm and took the job at the boutique, since I wanted to focus on the US market instead of Emerging. After having a taste of the work that is involved in finance I can say this: **It is an incredibly miserable and boring job and has changed me to a point that I didn't like who I was becoming and just dreaded going into work everyday. **

Why I'm Leaving

The work and the job just suck. period. After browsing through this site for I already know i'm gonna get hit with monkey shit and a bunch of guys saying you have no idea how good you have it working in an office when there's people out there busting their ass wishing they'd make the kind of money you would be making for doing jack shit. And while that's incredibly true, I've realized that no amount of money is worth me sacrificing my own happiness and well being. I found that the work I was doing was incredibly boring and administrative. A lot of junior bankers love to boast that "I'm an IB Analyst I make fuckin bread and close deals" when the reality is that I was just an over glorified secretary who's job was to just STFU and push the deal forward. I couldn't stand coming into work, working on deals that I didn't give two fucks about all for a bonus come year end. To top this all off I realized that if I were to continue a career in IB this would be my life for the next 6 years from analyst to associate until i'm put in a more sales-esque role as VP. Which even then I thought long and hard and I wouldn't even want to be in a sales role where all i'm doing is selling you my services for something I could care less about, ie helping your company raise money for whatever project you want to do, or for selling your company to a potential acquirer.

IB culture fucking sucks. When they say the people you work with really matter in the office, it's incredibly true, but this is my own self selection and bias coming to you guys. Every single person I've met in finance is incredibly money focused and don't seem to have any other interests or curiosity about life. All the way from analysts to MD's all that's on their mind is always about money and just closing a deal to see their next bonus, which they never happen to even spend since they never have any free time to even spend it or use it. Coming into work I just saw that people in the finance industry are just too money focused for me and they're not living life because that's all they can think about. The culture is also very much old fashioned and not up to date with current times. My former shop only gave me 10 days vacation time and expected me to be chained to my desk and on call at all times.

They're too scared

Going in I knew this. I've read all the posts. I've experienced the always need to be on call at my EM brokerage shop. At first I was able to tolerate because I felt the excitement of getting to say i'm an Investment Banker! I'm finally getting to where I want to be. But the excitement fades aways fast when you're dealing with BS work all day long and you're expected to live at your desk. Even taking a vacation to go travel for 2 weeks is seen in a bad light. Now this one point doesn't just go to IBers, it also goes to Accountants, Lawyers, and Consultants. All of these high office positions are filled with people who are pussies and are incredibly risk averse. Every single person who I've met that work in these fields are always again focused on saving as much money as they can and always talk about doing what it is they think they want to do, but never pull the trigger. They're too scared. They think and think and think but never act. I've used to live life this way but got sick of it because I found it was getting me nowhere. I couldn't be surrounded by people who lived like this so that's another reason as to why I've chosen to leave.

Some of the older guys may disagree with me since they probably have been through their fair of shit when they were younger and are probably thinking that I'm just bitching but to me this culture of living to work 24/7 for someone and to be grateful for the job you have is an incredibly toxic way of living and no amount of money is worth it. It's total bullshit and I'm done dealing with it. I wasn't put on this earth to work at a desk and then die, and i'm choosing to leave it while I still can.

What's next

I'm going back to school to become an Engineer. Something that after a long time of soul searching, asking myself what it is I want to really do with my life, and putting myself in the perspective of the scene from fight club where Tyler holds a gun to the clerks head and asks him what is he always wanted to be but just never did for whatever bs reason he told himself, I realized I wanted to be an engineer and am going back to school this fall to get my second Bachelors, studying Electrical Engineering. I realized I'm an incredibly curious person and ever since I was a kid I always loved tinkering and building things (thanks legos). This stemmed to me from one day of just sitting at work and asking myself how tf does the computer in front of me work. And for the life of me I just could not answer my own simple question as to how this machine that I grew up with my whole life, works. I want to live of a life of pushing the boundaries of technology and creating inventions for the betterment of humanity. I don't want to be the banker reading about it on the WSJ, I want to be the engineer who created it and is now moving on to creating something totally awesome again as well.

Some of you may see this as a rant that is just me bitching about IB and that's fair, I am fed up with the industry as is. But to those of you who feel like you're stuck in IB and are miserable. Do what I did and act on your passions. Find what it is you really want to do. Ask yourselves the big fucking questions like is this who I want to be? Is this the kind of life I want? Liquid af but miserable at work and never get any time off? Take the leap cuz life is an adventure. You're going to end up in the cold dirt anyways and no amount of money can ever be taken.

 
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Incorrect, you're defining an industry based on your experience. You can't stereotype the police as being bad just because you've dealt with one cop. Your experience is different than mine.

Your experience is shit because you didn't have an option, you took what you could scrape by. You weren't able to do due-diligence on the culture of your group, you chose a sector you don't enjoy (i work in tech banking and fucking love it), you're obviously working at a shitty boutique and not making market pay, and you treat banking like a stepping stone (if you see yourself working in banking long-term or one day starting your own bank, suddenly every aspect of the M&A transaction becomes interesting because you want to get it down).

My first year of banking, I shared your exact sentiments and it took another group to realize that banking isn't that awful after all. In fact, the pastures look greener than most exit options.

What concert costs 45 cents? 50 Cent feat. Nickelback.
 

Jamie_Diamond

I'd be interested to know how you did your own DD on the new group.

That is, bankers always are good at marketing. The new group will always sound awesome when compared to what you have. Plus it's difficult to discern what people will be really like until you have worked with them, until you're together in the trenches under tight deadlines, and then see how they really act. Especially within banking, where harsh behavior is tolerated, it really comes down to the nature of your team head, and a lot of times you just have to take-it-or-leave-it in terms of offers, etc.

@Jamie_Diamond I agree 100% with your statement above. Banking can be awesome if for the right group, and it all comes down to figuring out the personalities. But it's just so darn hard to do so, and I'm curious how you've managed to navigate and find a good group. I've on occasion found myself working for saints or devils - and it was really dumb luck what they really turned out to be like.

 

It's understandable from the perspective you are coming from. Do I love banking and the markets, yes, is it my passion? Yes, it something I want to do with my life. Now the contradiction, realistically I love medicine and I love engineering. If I wasn't in the position I am in right now, I would be an anesthesiologist or a chemical engineer.

Also, not sure why anyone would be angry with you or give you bad responses, banking isn't everyone, if you feel like this isn't your place, find comfort in yourself and leave. Do you what love in life, no matter what.

"It's okay, I'll see you on the other side"
 

I've been thinking about getting a second bachelors as well. Do you think it makes sense to do this given that you will be older than all your peers?

Huey Lewis and the News. Great stuff! I just bought it on my way here. You heard it?
 

At first I was a bit hesitant about the idea of going back to school post graduation. I thought about how embarrassing it would be. But everyday I was going to work and I was incredibly miserable and knew I had to make a change in my life and pursue what I actually cared about and what made me happy. I do think it makes sense despite being older than my peers in my classes, but after doing some research and reading & hearing other people's stories, there's actually a ton of older candidates who leave their jobs and pursue engineering (mostly mechanical) but still it's more than normal. So I'm not worried about the students being younger than me. If anything that's something that I've kind of prepared for. What is going to suck is paying for classes again and not having an income lol.

 

This may be a somewhat personal question - but how are you funding this? I've always had that 'what-if' thought as well, except mine would be (eventually) a PhD in exercise physiology instead of finance.

I'm still paying the last of my loans from undergrad though, and the thought of taking on more debt and having minimal income is scary to be honest. Are you getting help from your family, do you have a lot saved up, or are you just saying fuck it and taking out loans? Do you plan on working at all while going back to school, even if its part-time/bartending or something?

 

When I was at university, I actually saw someone who was much older around 40-50s in class around people around the age of 20s, I never spoke to the individual, I had great respect for the individual to come to class and sit to get his degree. Everyone in life finishes their goals at different times.

"It's okay, I'll see you on the other side"
 

Yeah my thoughts exactly as to why I decided to write this post, I've had a lot of phone calls with prospective students from all sorts of schools and to me it seems like they really don't know what it is they're getting themselves into, they're too focused on this potential prestige that fades away very quickly, and income when you should never chase money ever in your life. I also always correct them whenever they say "exit ops bro" that IB only gives you exit ops to other parts of finance and nothing else. if they ever want to work in any field outside of finance... good luck you'll be seen as a bean counter. To most folks who work in their respective industries they literally see no difference between what a banker does and what an accountant does. Just a hard truth that I try to let them know early on.

 

Thank you for sharing. As is the case with most aspects of our lives, there is no black and white. There are platforms and groups that enjoy extremely high levels of banker engagement and satisfaction. We should avoid broad and sweeping generalizations.

Best of luck moving forward.

 
 

appreciate the kind words! and you're right there's definitely some people I've met that actually enjoy finance, but those are the people I've noticed that were never in it for the money or prestige, they're in it to play the game and win.

 

Wishing you all the best! But do expect to suffer a lot for your Engineering degree. Do expect to be chained to your desk, very probably sacrificing to some extent either your social life or sleep as well :) Hopefully you'll succeed later on and build things that matter!

A Dutchman in London
 

Yup totally possible. I graduated with a BA in Econ and never double majored. Nearly every school allows you to go back to get a second degree, they don't care so long as you can pay them.

 

I trained as an architect undergrad. There's a big part of me that misses the whole problem-solving, creative-thinking aspect. I loved getting a difficult site, a complex client requirement, and being told "solve this." Architecture is a dead industry tho. I-Banking hours (80 hrs/wk) with minimum wage salaries for a decade, while you try to climb your way up the corporate ladder so that one day you might be making a living wage. I just couldn't bring myself to do that, but maybe it would have been more fun. Certainly miss problem solving, drawing, client-pitching, etc.

 

I'm not all too familiar with civil engineering and architecture, so I couldn't say. Personally I'm going down the Electrical Engineering route and am also looking for an MS in ME with a focus on mechatronics. Considering working in Aerospace and Defense sectors working on robotics since I just get completely excited over the idea of power armor/exo suits. Would love to build one one day and to see if it's even possible. And honestly the why of it? Because it's just cool af to be able to build a machine where you can be like lift 100lbs with ease and leap stories. This is all assuming it's possible in the first place.

 

While I think this type of post can be positive for some students who don't fully understand the industry you gotta realize that 1 year at 1 boutique isn't really representative of the industry as a whole..

Also engineering is also a technical field i'd make sure before you start that the same reasons you hate IB aren't going to be at play once entering the engineering industry..

 

Realistically speaking the difference between what a BB and a no name boutique is very minimal. At the analyst level you'll literally be doing nothing but building decks and models, scheduling calls, and sending out mass emails for your MDs. Only difference is deal size and the size of your bonus. But at the end of the day it's still the same shit. Hence why there's no difference between what JP Morgan offers and what Morgan Stanley offers. They're literally hired on who they know and how they can connect a company with money.

As for engineering from what I've learned there's definitely some BS since every job has it, but the work itself is constantly working on building something that can be used or will perform a specific output or coming up with a solution to a practical problem.

 

Funny—I am finishing my bachelor’s in EE and going into banking next year. Grass is always greener I guess.

 

You've got Asset Management - Investment Advisor written all over you.. and I mean that in a good way. That's what I do and the freedom the job offers is something I wouldn't trade for anything. There's days I work from home, days I travel to see a client (just for the hell of it) haha, days I strictly do nothing besides analyze risk and performance in clients portfolios. People like to shit on IA, but the truth is it's actually a really great gig when you can build your book up enough.

Not to mention it's nowhere NEAR as monotonous as IB. I can only go on what others say about IB who have worked in it, but it seems like it is incredibly boring at times.

 

OP I'm an engineering grad in my second year of working in strategy at a F500.

I'm switching to our Ops leadership program (they usually only accept MEng/MsC. Eng or MBA + years of eng experience but I've built a good network at the company which helped me get in without a post-grad.

I will be starting as a production supervisor (managing 40 people off the bat) -> engineering manager -> production manager -> plant manager (director level - managing 400+) over roughly 8 years. I'll then switch back into corporate & gun for a sr. director or vp postion.

I empathized with some of your points, namely the desire to feel like you're making a tangible contribution instead of fancy powerpoints or spreadsheets or a job a relatively well trained monkey could do. I also hated the "advisory" nature of my job. Ultimately though, I'm not making the switch because of an altruistic reason. I'm making the switch because my company tends to prefer execs with an engineering background who specifically went through the program I'll be starting. Strategy people cap out at VP Strategy and cannot move up past that.

That being said, the engineering world can be just as toxic and frustrating. 1. There's a lot less emphasis on innovation nowadays. It's more around "lean" manufacturing, finding ways to make the same products cheaper + companies are significantly more risk-averse. 2. Sure, you can work in R&D in the defense industry (but salaries are low & ex-military are always more favored if you're interested in moving up) or the automotive sector (extremely competitive to work at say Tesla in R&D) 3. Soon, you'll have to decide whether you want to remain an engineer for life or switch to management (where all the $ is)

Either way, I'm always pro- people going back to major in engineering, so I would like to congratulate you on your decision and hope it works well for you.

 

This. You beat me to it.

  1. I worked in engineering in the past, and you're constantly fixing someone else's work or trying to figure out how to reduce costs/time.

  2. R&D was never a good way to a good salary. I worked in R&D before - enjoyed the intellectual curiosity and experiments (and having the CEO of the company come crash at our labs for naps), you suffer ultimately at the hands of office politics and become the first department to get hit with layoffs during budget cuts.

  3. Ageism is a real thing in this industry. I think going into Upper Management quickly is the best route in the field.

No pain no game.
 

You’ve unfortunately failed to acknowledge that you have very little experience in the workforce and to judge an entire industry based on your experience level is quite immature. Your inexperience and immaturity actually make it quite easy to unfortunately understand why you are treated as a commodity in banking, as the next person will fill the void. Wish you luck in next role and hope it fills all the hopes and dreams you had.

 

I want to address the whole "Do what I did and act on your passions" bit. If there is something that peeves me about our generation, its this whole mantra about "follow your dreams". Truth of the matter is, only a select number of people will have the privlege and good fortune of doing what they truly love for a living. I LOVED baseball, I imaginged myself playing centerfield for the Yankees some day, but guess what? I wasn't good enough, and not for lack of trying. So I had to find a career that I was good at.

If you can afford to invest 6 years into a career only to realize you don't like it and then starting over again, by all means, do it! But the reality is that not all of us are able to do it. I admire people like my dad, who vacuumed (to the point where he's lost part of his hearing) and cleaned toilets for a living. Do you think he had a "passion" for cleaning? OF COURSE NOT. But he couldnt' afford to "find himself" and find his passion because his family depended on him. I always used my dad for inspiration, wanting to get into finance so that one day I could support him, and my mom, so that they can retire.

I studided at an ONLINE COLLEGE, Thomas Edison State University, anyone heard of it!?!?! of course not. I networked my ass off and found a job in Prime Brokerage, where I currently work. I don't know what the future has for me, but I'm glad I didn't "follow my passion".

If I can give any advice to any of you chimps out there, following your "dreams" is rarely the best choice

 

Thanks bro, I ended up finding out that in this industry it REALLY is about who you know. I got lucky and every once in a while I find myself surrounded by co-workers that went to great colleges (Duke, Cornell, etc.) and I think to myself "I shouldn't be here". Not that I'm not smart enough, but if you look at my resume (worked at Gap, teller at People's Bank, no internships, etc.) It's a miracle that I was able to sneak in!

 

Nice post OP. The work is only interesting if you are passionate about what you are doing. The grind is definitely not for everyone. I would say the main reasons people do IB is for the money, they like it, or because it sets them up well later on. And for you it sounds like it set you up to realize what you want to do with your future so don't discredit the experience too much. Best of luck!

 

Ok so as the name suggests I studied engineering at university. I was the same as you, always tinkering and building and taking things apart just to put them back together. How do you think you'll cope when you realise that engineering is really rather dull to study? Will you then change your career path again or just grimly soldier on into the engineering void, regardless of how little gratification you get from your work (like some of my friends have done)?

 

As someone who deals with Electrical Engineers all that time, you may want to rethink that. I would suggest taking this long weekend to think it over. PM me if you really want some insight, more than happy to help and provide insight into that unique field.

“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
 

The main point is the IB world is shrinking, so you’d better gain other skillset and get into another sector like AI. IB is not even as interesting as it used to be as the amount of restrictions that the regulators impose don’t allow to have the sexiness, which would make your job appealing. Culture of organisations is another story, but certainly banking has more aggressive people, and the more the industry is shrinking the more aggressive they’re becoming as they think they need to defend their role. Been for 12+ years on both sell side and buy side, but mainly sell side. Got from the back to the front of the bank ...still the job would be more interesting if there was s real clean up of incompetent idiots that keep repeating things the same way for years, 1st cause they are scare to leave their comfort zone, second because of they don’t understand! In the interview process they seem genius, reality a bunch of ignorant. Well done to get into studying again, you always have to do what makes you happy! Get coding skills if you don’t, there’s lots of work out there that pays good money :)

 

YES 100% TIMES YES. THANK YOU. The regulation is the first thing i noticed that led me to realize the industry is dying. Pre 2008 bankers were raining in cash because the regulations and FINRA didn't have as much of a strong footing on it. Go back to the 80s and there were EVEN LESS REGULATIONS and there WAS EVEN MORE MONEY. But that's because back in the 80s the banks where the gate keepers and knew all the information for financial markets. Over time I realized that with technological innovation and increased restrictions on banks along with Firms (like spotify) realizing they can raise capital on their own Bankers are becoming more and more redundant and only the most aggressive can survive because the number of deals are drying up. Forget the size of them as well.

It's like back in the 80s Sales and Trading was where you wanted to be. Come now in the 2010s and soon the 2020s everything is now automated and traders are useless. A machine with a basic algorithm and team of coders can outperform any single trader now. If you also take a look at all the BBs pre 2008 S&T was their highest profit earner, now with S&T dying due to quant funds, technological advancement, and regulations, BBs have switched their entire business model up. It's already happened to MS where they no longer focus on S&T as their key product/service but are now heavily pushing for Wealth Management since they can earn WAY MORE fees and revenue from a growing population of retail investors than they ever could from Corp Finance and Sales and Trading.

As for coding and technical/hard skills, as part of my engineering program we're already going into it from day one, learning C++ and Matlab. However it's not enough to have technical skills and soft skills are still always the component that will help you when you're in a sea of applicants who also have the same exact skills as you already have.

Last point. AI is still not at the level that you think it is. It's still in it's early stages and needs a lot of work. It's definitely improved immensely since the 50s/60s but I currently believe there's a lot of buzz around it currently and PhDs still have a lot of work to do for it to be incredibly optimal. Look at self driving cars for instance. Currently the AI is still incredibly basic and can not function whatsoever in a city like NY for example because there are too many variables that it can't fully comprehend nor correctly do the math for. Uber (if i remember correctly from one of my buddies in google) currently is working on building self driving cars in Arizona which it's succeeding because the variables such as weather, roads, and population are relatively simple for the machine to comprehend. Ie. It's always sunny and clear, roads are not damaged and clearly marked, and population is low so the AI can operate in that environment.

 

Sounds like you've tried something, didn't like it and are now moving onto something you will find more fulfilling.

Being able to admit you're not happy and making a change is tough. Especially in investment banking where people fight for many years to break in and are often tempted to stay even when unhappy for the money/prestige.

Congratulations, and I wish you the best of luck.

 

Thanks dude, and yeah that's exactly the whole point of the story, I tried it, didn't like it, and I'm not afraid to drop it all for something I worked so hard for but is making me miserable.

 

I respect you being able to pursue your passion and leave a job you hate, but I also envy you.

I would kill to be in your position and even have the opportunity to hate an elite job. You have been given a privilege that 99% of people are never granted. Your exit oops after quitting are even going to be far more elite than a random corpfin role.

Again, good for you, but I think you’re probably really entitled

 

Honestly I don't think IB is even Elite. IB imo is something everyone thinks is Elite because so many people look at it at the surface. They see the MDs and VPs with the fancy cars, suits, and watches and that they're with the CEOs of huge companies. But IRL if you peel back a layer, you'll see it's not Elite whatsoever and the Exit Ops as i've mention earlier are literally only for Finance Roles. NO ONE and I really MEAN NO ONE gives two fucks if you were an IB analyst at Insert any Bulge Bracket or Elite Boutique for any roles outside of Finance. No CEO of say a Metals and Mining firm gives a shit if you covered the sector and did a bunch of deals in the field. CEO will not care because guess what? Are you providing him any value in increasing his top line or reducing his costs? Will you help him increase his sales? Optimize company operations? Know which piece of mining equipment is ideal or which geological piece of land they should survey? An investment banker literally serves no purpose to a CEO except to help them raise money or to sell off a part of the company or the whole company or to outright buy another company. So again rethink the whole perception that IB will open doors for you. It won't and if anything it might even close doors for you since people will think you're just another bean counter.

But thank you though for the warm wishes dude!

 

I think it’s more so the pedigree and assumption that if you worked at a BB or EB, you’re probably going to be a hard worker.

I mean you’re right, exit ops outside of finance probably suck. But for more chill finance roles like Corp Dev or Corp Strat, you are literally blessed by having IB on your resume

 

Felt the same way, did banking / pe for 3 years now heading back to school to become an engineer. Most of the folks in finance lack intellectual curiosity as you say. The job at the junior level was almost unbearable for me and I was at a BB. You’re making the right move son

 

appreciate the confidence boost and the kind words. got to be honest tho, despite being loaded with nothing but STEM courses... school seems like a fuckin' cake walk compared to the working world. All you need to do is show up on time, do your work, prioritize studying time and organize your calendar and everything else just falls into place. No unexpected deadlines, no last minute surprises, no corporate BS. You just show up, do the work, and get out what you put in. Currently loaded with Engineering, Calc, Comp Sci, and Physics courses and it seems so easy to balance all of these things, compared to when I was doing my first degree.

Wishing you the best on your journey back to school as well.

 

Congratulations on cutting your losses and getting out of IB. As someone who has quite a few years under my belt, may I suggest you also consider a trade? What about becoming an electrician and owning your own business? It may not be as sexy as saying you're in IB or PE or Engineering but you won't dread going to work every day and you can do quite well as an electrician and business owner. Good luck to you!

 

Wow, so insightful. Another young Turk realizing that they’re better than this whole IB racket and it’s time to jump on the SV gravy train...

Hope you realize what a gamble you’re taking. That a WHOLE ADDITIONAL 4 YEAR DEGREE followed by successful recruitment into a non-ass engineering role will somehow feel like less of a job.

If you came here for validation, I’m sorry to say that I think you’re making a huge mistake in going back for ANOTHER undergrad degree just to maybe ultimately place into a career that will have many of the same problems.

But hey, if you think you’re going to feel fulfilled and meaningful and actually give a shit about fucking with the button design on snapchat’s next UI rollout, be my guest...

Array
 

Plz reread post, thx. Never said I want to work in SV, if anything would rather work in the robotics/aerospace/auto industry. Also not looking for validation, could care less what bankers think same way as they could care less what I think. I made this post to those who are thinking about going into IB to let them know what it's really like and to see passed the over glorified prestige and supposed pay day.

 

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April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (145) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

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