ER to buy-side

Water Cooler Careers
#1

All,

I am considering a career switch to equity research as an associate and would love to get your thoughts regarding the possibilities to transition to the buy-side after a few years as an associate (hedge fund or mutual fund).

Thanks for any thoughts.

MP

#2

Definitely possible. I did the transition years ago. As a good sell side ER person you talkto buyside all the time, and if good, they’ll reach out to you when something opens.

#3

Thanks Itera. Probability-wise, how do you feel about that possibility vs. becoming a senior analyst at a BB? I imagine that also different skillsets may be valued in the 2 scenarios.

#4

Odds are generally under 10% for sell siders to make buyside. That’s including the bulge bracket which come with much better odds. The saying goes that the best sell siders get poached by buyside, and those who aren’t as good stay sell side .

#5

Got it, thanks. Do you have a sense of the career paths for those that do not make it to the buy-side nor become senior analysts? I have read about roles in IR, corp finance, strategy in industry but was wondering whether there’s anything else (I’ve been in strategy roles before and my goal is to transition out not in :)); also post-MBA level so that option is out as well. Basically, I am interested in transitioning to ER as a path I would enjoy but only to the extent that following career paths are reasonably likely: i) buy-side; ii) senior analyst; iii) AM side of a BB - in a PM role or event a client-focused position…

#6

Do SS ER associates who move to buy side research the exact same area they were before, just more companies? Or do expand their research to a wider industry classification or more?

#7

There are no guarantees, and it’s impossible for me to judge how likely you may be able to succeed in that transition.

Other paths are as you mentioned… IR, industry, etc. You pick up really good skills in SS ER, so I defn wouldn’t knock it at all despite the bad rap it seems to get from some people.

senior analyst roles are shrinking in number, most associates leave or some stay as lifetime associates. top guys generally aren’t leaving.

#8

Makes sense. Thanks Itera! Yes, I think it sounds very interesting but it does seem like it has a bit of a bad rap from some ppl.