Looking to get some color here; the advice I’ve received from most professionals is largely biased to their path and background. Current role lends itself well to transitioning into both of the aforementioned.
End goal is an investment analyst. So, the real question is: Do you suck it up and deal with the long hours of the sell-side and hope that you can make the transition down the road? Or try taking the back-door into the investment team; which gives you more time to finish CFA charter, source investments, and pursue personal interests.
Anticipated all-in comp is ~90-100 for ER (In a higher cost of living city, thus diluting the true earnings power), whereas the less demanding IM role would be ~80k (In a city where the buck goes a lot further). Interested in hearing your thoughts, or things you would consider.
Do you have a sell side ER offer? How good is the shop? If you have a choice between sell side ER and a back office job and your end goal is to be a buy side analyst I don’t really see this as a question.
Trying to break in from the back office isn’t easy or a given. Plus you can be branded as the guy who came from the back office.
i work on the buyside, came from back office and am kind of stuck in my jr analyst role unless I get an MBA and come back or go somewhere else.
Also buyside hours aren’t that awesome unless you are a PM. 7:30-6:30 is a standard day, I go home, eat then work or read another hour or two, plus working 4+ hours on a lot of Saturdays and Sundays. Earnings season or other times can be longer hours.
If you want to be a buyside analyst my advice would be do a sell side ER gig for 3-4 years then go to a top 7 bschool.
Everyone will have a different opinion depending on their firm and experiences but if given the choice of sell side~>b school I would have taken that in a heartbeat over my route. I went to a non target school, had a bad gpa, and no internship experience I didn’t have a choice but to start in the back office. Also CFA was nice, I passed 3 in June but networking was the reason I was able to land my role, by far the most important thing. Ask someone who moved from the sell side to the buy side, I doubt any will say they wish they started in the back office.
Completely agree with galan. Most people who take back office or middle office on the buy-side end up staying there. Their involvement in any investment decision making is nearly non-existent. Your best bet is to get a good sell-side role that enables you to interface frequently with buy-siders, and really knock their socks off whenever they have questions about companies under coverage.
All- thank you for the insight. Looks like the tribe has spoken.
Galan- to further clarify, I do not have an offer. However, I have a good number of friends/referrals for different firms (ranging from bulge brackets to local boutiques). Also, exit ops from my role often include ER/IBD/AM.
I’ve had interviews at investment shops but haven’t been able to convert them to offers; lost out to folks w professional investing experience and have completed their charter. Nonetheless, I understand the hours/lifestyle are not much better. It’s the fulfillment that the work offers that I aspire for. Having skin in the game, etc.
U Wisconsin’s- Applied Security Analysis looks like a great alternative to Columbia. It doesn’t get enough credit and their placements are truly remarkable. Best of luck with everything.