I just wanted some frank advice. Im a 32 year-old, trained UK chartered accountant. I have just completed my Level 3 exams (not sure yet if passed) and since my early audit years at a Big 4 firm, I have since been contracting in the back office (product control) of a few large Tier 1 investment banks for a fairly lucrative salary. Note: my bachelor’s in accounting and finance is not from a target school here in the UK.
Thing is, I hate the operational nature of my job and have been trying to break into equity research for quite a few months now. Have had pretty much no interview invitations or signs of interest, even despite conducting my own independent research and providing potential future employers with a fairly reasonable research sample and polished resume. I feel like I am left with no choice now but to do a part-time Msc Finance at London Business School in order to get a good name behind my resume so that employers will take me seriously and that I stand a chance in comparison to the current competition (yes I understand I’m up against younger guys that have just graduated from other top B-schools).
I have been aiming towards equity research since my CFA and UK CPA compliment the skills required for this role quite nicely, however I feel like doing the MSc will provide the networking and career opportunities that will broaden my options and get me to either where I think I want to be, or into IB/consulting. Let’s not also forget that new regulation coming in such as Mifid 2, requiring asset managers to fund their own research personally rather than through soft dollars, and the impact this will have on headcounts at the junior levels (since PMs are only going to be paying for the best research from the more experienced analysts who have the best relationships with managers at covered companies) - makes this a very unattractive area of finance to move into for somebody at my level.
So I’m kind of stuck. The Msc is expensive (coming in at around £43k) and I’m not sure if whether or not having a CPA, CFA (eventually) AND an Msc in Finance is just pure overkill. It would be good to hear people’s thoughts on this and if the course is even worth it?
A lot of these ER positions are looking for 2-3 years deals experience and if I can avoid having to go back into Big 4 practice to work in Transaction Services / doing lots of due diligence on PE targets - I would like to do so at all costs.
You’re likely too old and specialized to be given serious consideration for most equity research jobs, even with further degrees. If I were in this situation, I would focus on maximizing potential in the field that I was already in. It might not seem like the most exciting work, but most things are like that after some time.
Just to add on the Ohai’s comment, I would like to ask why are you even considering ER at this stage of your career? Are you just attracted to a profession for its upside? you should need to dig into a little of downsides as well in order to completely understand the ROLE.
I thought I outlined the downsides of the role when I mentioned the regulatory changes that are happening at the minute and that will obviously affecting all of us globally. I took those into consideration, which is why I think I may just as well do London Business School since it is the top business school in the world at the minute for post-experience Master’s in Finance and they place directly into IBD and asset managers such as Blackrock.
This will at least give me some options to work out exactly where I’d best fit into and maybe despite my age, kind of get me a foot in the door before its really far too late. I’m obviously biased and optimistic. Otherwise, what was doing this CFA all for if I just agree through ohai’s attitude? Good shout on the relationship manager private banking type roles. I have looked into them in the past and they seem interesting - although again, I’m kind of worried I’ve missed the boat on that one and afraid I’ll be coming in as a junior.
Please chill ‘Cooler’. There’s nothing disrespectful against Ohai, I appreciate that he is a veteran of this forum yet I can’t simply agree with him that it’s all over for me (so sorry about that!). The truth is, I cannot clearly see that LBS will get me into anything and was more intrigued as to how the name carries across the pond to the US since my intention was to expand my reach globally.
I did not find your response disrespectful. However, I did want you to be more objective about your situation, and possibly consider broader options because of that. In pursuing a different field, you might just end up spending time and money on a new degree, only to fall back on a job that is related to your old career, since that is what you are still most suited to do. Unfortunately, the state of the industry is such that few employers are willing to take chances with unproven or unconventional job candidates. It is much harder to move into a new function today than it was years ago.
Even if you do break into equity research, it might be so hard to advance in this field, due to overcrowding and possibly unsurmountable industry headwinds, that your long term prospects would be limited anyway. From my perspective, there isn’t anything wrong with being in accounting or a support function if your compensation is decent (or “lucrative” as you described. I have to admit that I am out of touch with what that means to most people).
With that being said, I don’t necessarily disagree that a part time MS would be worthwhile. All you have to lose, after all, is some free time and a small amount of tuition money. I still find your infatuation with ER to be naive, but there might be other fields where employers will appreciate your new academic credential. Part of the reason of pursuing this degree, as you mentioned, would be to expose yourself to different options.
Thank you for your wise words ohai and, of course, I will be taking into consideration all of the above points. Through personal experience I can attest to how hard it is these days being an ‘unproven/unconventional’ candidate and trying to transfer across, but will remain optimistic and keep this thread updated as I go along!
I’ll disagree with some on here and say that 32 is def not too old for ER. We hired a few on my prior team in their 30s and 40s with good finance backgrounds and that were just generally interested. If you have some specific industry experience, that also really helps (e.g. former aerospace engineer for the A&D team or doctor for the healthcare team).
That all said, I’m not sure why you would want to pursue ER given the secular decline the industry is in, especially in the UK. You work a ton and the pay is not nearly what it used to be (nor will it get better with the current model).
A masters may put you in-line for something else, but definitely get an internship lined up before you start your program.
Have you considered credit analyst roles you will then stand a much better chance at ER role? Its how i got interview.
Why not just apply to be a credit analyst they do 80% the same thing. Either way as a reality check you will be in for a painful ride…you’re going to earn less as a junior and work longer hours, waking up before markets open. 7:30am morning meetings
if you start at big bank doing ER with no credot experience they will have you spendyears filling out P/L and B/S statements in spreads and when your already an accountant this could be painful for u.