Investment Consulting? What to do?

I have an offer to work for an Investment Consulting Firm (a major one) as an Investment Analyst, I was wondering if this is a job that could possibly open alot of doors? or is it too specific to allow for career growth outside of Investment Consulting? (I’ll further elaborate) It’s an analyst position reporting to two principals who are both consultants. Their primary role consultants is to provide advisory assistance to a multitude of high net worth individuals / pension boards / trusts, they consult on selection of asset managers and portfolio asset allocation. However they do not hold any assets and they do not do any form of equity analysis. My role would to be to provide reports based on in firm research to support the consultant’s advisory recommendations. The two principals (consultants) both have CFA as well as a actuarial designations (FSA / FCA), from these credentials one could assume that it is not a joker line of work. However, I really don’t know or understand their line of consulting as it quite specific. I do not have reservations about working for this consulting firm in that I believe that the work would be really interesting, my only concern would be how is this line of work regarded within the Finance industry. As in would it provide opportunity to move within the finance industry? I could imagine that it might provide opportunity to move into a portfolio associate position, but I really don’t know.

OClean, Investment consulting can result in a rewarding career path. I do not work for an investment consultant but rather work for a money manager that calls on consultants. They are the gate keepers to many of the large pensions/endowments. They work with institutional clients to decide the appropriate asset allocation and then hire money managers to fill certain asset class buckets (ie small value, international, high yield etc.). A guy I work with came from an IC. He has mentioned that it is a very straightforward career path. You start out as an analyst in which you assist in manager searches and conduct research for the senior consultant. Then eventually you move on to a senior consultant where you are dealing with the institutional client. After a few years if you decide that consulting is not your thing, you will have met loads of money managers and hedge fund managers. This could be a gateway into investment management. The CFA designation is almost mandatory for reaching a senior level consulting position. I hope this helps.

OClean- I agree with everything Buffalo said. I was wondering what kind of compensation you are being offered to start? I have an interest in the same line of work.

Cash rules everything around me/Cream/Get the money/Dolla dolla bills y’all

Killa Beez on a swarm, Bodymore 45-55 first year. This is pretty good considering I am a fresh outta Uni. I dont know if I quite cut it for IBanking, the competition is based on riduculous measures like having a 3.9 GPA. I have a 3.55 which in my opinion considering I nailed my level 1 CFA in my last year and was a varsity athelete would count for something. I just wish there were more options for entry into the Finance world than IBanking or some equity analyst job that requires a family realtion just to get the interview. I probably should have done a CA and then entered into a RA positon, but I’m not going back to school now. I really get a mad kick out of what I have studied and hope to continue with it, this seems like the oppertunity. Seems pretty resonable for a job that isnt over the top work hours. I like the idea of having a life getting time to study as a means to finish off the CFA program, as well as working in consulting and finance at the same time. I’m probably going to take it, and work my ass off to rise quickly. I just want to get a job and get on with my life.

I’m not built for IBanking either… Anything over like 55 hrs a week and I wanna kill myself. 45 - 55 g’s right out of undergrad isn’t bad at all for a lower pressure position where you don’t have to work like a dog. Good luck!

How are your hours? What city are you in? I have a friend doing the same thing at Cambridge Associates in Boston, gets $45K and works 12-14 hour days.

Oclean, I know this doesn’t matter now, but there are a ton of Ibanking jobs that will take on people with a “lower” GPA. Goldman Sachs isn’t the only investment bank in the world. There are literally thousands upon thousands of boutique/lesser known investment banks who are always searching for talent. Let me also add that 60 hours per week at a job that is interesting isn’t that bad. After 60, it can start to wear on a person.

kkent Wrote: ------------------------------------------------------- > 60 hours per week at a job that is interesting > isn’t that bad. After 60, it can start to wear on > a person. In fact, I would say it is better than working 40 hours per week at a job that is boring to you.

KKent, I just finished up school with dual degrees in Bcomm Finance and Economics, I passed my level 1 CFA with the grades as stated. I live in Canada and Goldman Sacks is not my only option or where I am applying. I have had an interview with RBC the biggest in Canada I made it to the second round but then lost out to a guy with experience, however I have difficulty procuring other interviews mainly due to the fact that I am already gradguated and banks up here want to hire kids that are still in school. I know they are looking for people that are grads, I just cant seem to break the seal or know where to really look. It’s unfortuate because I know there are jobs available, I just have to get on them. I need some advice on how to do it.

ymichael, I agree 100% (although I’ve never worked 40 hours/week. LOL. Either 20 or 60+). Oclean, well, I live in an area in the United States (DC-Baltimore corridor) that is fairly devoid of finance-related jobs and through extensive searching, I’ve documented at least 50 investment banks in my area. I’ve applied to maybe 10 IBs, got about 6 responses, and 2.5 offers (one could be argued is not IB). All of those offers were looking at people in the new grad to 2 years experience range. Again, I know it might be a little late for you as you may be close to starting a new job, but there are banking jobs out there for those who are diligent in their search.

what about recent MBA grads? Will firms be interested in them?

My impression was that the transition from investment consulting to portfolio management is not easy… people seem to like to hire former IB types rather than consultants as analysts and then promote to PM. Possibly the fund-of-funds route would work for an investment consultant. Would that be a correct impression?

I dont really know.

Probably moving form consulting to client servicing in an AM firm, is the most logical path. Like being a prosecutor, and moving to the defense.