My long term career goals would be either a fund manager for AM, or some other front office senior position in a PE division. As of yet, my closest opportunity in an Investment Banking role is in IBD or research, both at the same BB. Should I carry on with it with hopes of switching to the buy-side later on, or should I try to aim more for a buy-side role directly?
This will be my first job, and my only experience so far is an internship in front office equity AM. In addition to CFA level I and an extensive corporate modeling training course from a top educational institution. My interests are mostly corporate valuations and the stock market. Should I bite my tounge and go ahead with an IBD or research opportunity? How is the workload/tasks/salary/hours/exit ops like?
sell side is often seen as the training ground into buyside.
I would recommend research. IBD path is basically all transaction driven, you can make more, but research definitely stronger fundamental knowledge base
I’m at cross-roads. First, I have no experience with IBD, I may or not like it so a part of me wants to take a shot at it. It should be a 3-6 month training course at first with a potential for a full time job after that.
Second, for the research role, I’ll be getting the job description e-mail from the HR dept tomorrow, so I still do not know if the research vaccancy will be equity or macro based research. I would probably cross over the latter if it is.
A little off topic, but the economy has been picking up after a more stable political atmosphere. Tourism hasn’t gone full steam yet, and might not be so for at least a couple of years, but it’s surely getting there.
Most (or at least many) buy siders started on the sell side at one point. It’s not a bad strategy if you have an in, being on the sell side is far more helpful to your career than being unemployed, or employed in a separate industry. Research is better than IBD for the reasons that itera mentioned.
In emerging markets, more research is macro based, and that’s partly because the macro environment tends to be more influential there. I personally like macro research, but it’s hard to find an edge in it these days. In fundamental research it’s easier to find a niche where you can specialize, and your competition (assuming you are covering Egyptian companies) is likely less professionalized.
I want to keep my options open, I have no clue where I could end up five years from now. But I’m definetly aiming for something investment buy-side oriented (PE or AM), probably in the same firm since it has all the IB divisions. So with that said, If it’s a macro research role, I don’t see much exit potential in that case.
Yes, PE is still transaction based, but the difference is you put down your own money in the deal. IB is mostly just advisory, you do a deal, collect the fee, and move to the next deal. A lot of people start in IB (sellside), and transition to PE (buyside) because lifestyle is better, rewards potentially better etc…
I see AM as a different path, where people generally start in research, gain strong fundamentals skills in a sector, or could be macro, and then transition into managing money on buyside AM, then ultimately become a portfolio manager.
Here’s the email. Looks like an ER role. I have a gut feeling that an IB job would have more exit ops, in case I decide against AM in the future, especially since it’s at a top BB (well, both are). How do AM, PE and IB compare in terms of salary/workload/hours/compensation/trajectory? It’s critical that I make the correct decisions at this point. Again, long term goals would be a PM at a HF/MF, or PE. I’m also planning to have completed the CFA program by August 2016. JOB DESCRIPTION Job Title: Research Analyst Business/Support Unit Research Reporting Line Vice President - Director (depending on the team structure) Recommended Level: Analyst Purpose: Contribute to financial analysis of specific companies to inform and assist clients in making investment decisions. Duties/Tasks: 1. Update models on companies in sector and undertake financial analysis under direction (DCF, SOTP, multiple analysis…etc.) 2. Collect data from a wide range of sources. 3. Conduct due diligence on companies in sector, with guidance from senior team members. 4. Involve in company reports, flash notes…etc, with direction from associate and other team members. 5. Assist in writing research reports. 6. Contribute to daily round up e-mail. 7. Attend meetings with clients, company management…etc. 8. Update multiple valuation tables. Job Requirements 1. Undergraduate degree (or equivalent) in finance / accounting / economics. 2. Evidence of analytical skills 3. Self-motivated and enthusiastic, creative and resourceful independent thinker. 4. Strong interpersonal and team-working skills. 5. Good command of the English language. 6. Detail oriented; works with a high degree of accuracy. 7. Flexibility in handling new tasks. 8. Multi-tasker, with the ability to meet changing deadlines. 9. Effective verbal and listening communications skills. 10. Manage pressure and conflicting demands and priorities tasks and workload. 11. Efficiency.
nice to have a choice and luckily choosing one will likely not prevent you from transistioning to the other, but sounds like you need to make a decision.
if you want to do PE, IB is probably the better route to eventually get there
if you want to do AM/PM, ER is probably the better route to eventually get there