I am currently a 1st-year MBA student entering IB. I know that the normal exits are some buy-side, corp dev, and corp strategy, but I wanted to see what else was out there. If you worked in IB and exited to another role or industry, please post where you are now in the following format:
Year you left: Ex. 2nd year associate
Role you left for:
Comp:
Current Role:
Current Comp:
| +149 | Dealing with depression and insomnia after unsuccessful IB recruitment | 70 | 15h | |
| +130 | Intern has 2+ hours of coffee chats daily - WTF? | 24 | 3h | |
| +118 | NYU Stern Clubs 101 | 26 | 1d | |
| +107 | What happened to west coast talent? | 27 | 10h | |
| +62 | How's Santandar and Wells Fargo Doing Post CS-hires? | 22 | 1d | |
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| +46 | Seeking Advice for Incoming Freshman | 14 | 8h | |
| +32 | Just got asked to leave an IB internship mid summer... that's probably a first | 23 | 1d | |
| +30 | Serious Anxiety | 18 | 1d |
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There are not many post-MBA associates on the forum I've noticed, but the stat I've heard is: for every 5 associates, only 1 will make it to MD (generally speaking, not necessarily at the firm they started with). Remember it's not the associate who is a modeling whiz who becomes an MD, but the one who is the best sales person who makes it to the top. Most people hate sales.
On average, at the 2 year mark there is a mass exodus of each associate class.
Purely anecdotal, but if I had to toss percentages on it it'd be:
Exit to corporate or startup finance/strategy role: 55%
Exit to trade up to another higher ranked firm (GS/MS/JPM) or EB: 20%
Exit to another same/lower tier bank for a VP role (done closer to their 3rd year): 10%
Exit to PE as a senior associate (it will NOT be top tier PE, typically MM PE): 10%
Stay with their current firm and group or possibly switching groups: 5%
Again, this is my best guess breakdown from conversations with peers. I have heard a mix of advice about when you jump ship. If you're targeting PE best to leave once year 1 is done because you'll be joining as a senior associate. I know some who either were about to get the VP promote or were VPs for a few weeks, bonus cleared and they bounced for another firm. You can find the base salary info for these roles all over this forum or google. Bonuses are going to be out of whack this year and for years to come. As the saying goes: your bonus is keeping your job.
Work on getting your return offer first and foremost. In this climate who knows how things will play out from an offer rate perspective, but the things in your control are: a great attitude, never complaining and being reliable.
All the best!
Good analysis. In my experience, I see this at 50%, 15%, 15%, 10%, 10% with some modifications to your categories:
Exit to what you mentioned + other professional roles and own / family business. Not everyone stays in a role that utilises their skills sets. You’d be surprised where some of your peers end up
Lower tier firm and not always in same product or group, sometimes as VP, sometimes at the same associate level for various reasons
Investments funds where PE would be the majority but see SWFs, credit, long only and family offices too.
Including non-IB roles. Corporate banking, internal strategy, markets, COO office etc.
I hear mixed messages on buyside after being a post-MBA associate. If I'm starting my MBA this fall coming from a strategy consulting background, and my goal is PE/other buyside but I'm comfortable with doing IB first, do I have any real shot at IB->PE, or is it unrealistic? If 10% ended up making the jump to PE, did only 20-25% want that and half were successful, or do most people go for that? I've also heard it's best to make that jump at VP/D, but someone here said 1st year associate is best--which is better generally? And if I get to GS/MS/JPM/even CS or BarCap, is that much better than say EVR/Moelis/CVP other EB?
I think you're overthinking things a bit here. The percentages shared earlier were just anecdotal. Focus on what you can do right now:
Of course during your first and second year do all of the banking, PE, VC competitions- there is at least 1 of each that MBAs from across the Top30 compete in. Network hard there to lay the ground work for opportunities and connections.
Especially as an MBA, your recruiting path is guided more by network than an analyst. Remember the biggest takeaway from your MBA is the network with your peers and companies. Everything after your first role out of business school is essentially built on that.
Good luck with first year recruiting!
Bank quality matters - GS/MS/a solid elite boutique is going to get better looks than another firm, but since it's so random and sporadic at this level your personal network is going to help much more.
On the other point, your age isn't really the issue here--it's the fact you have an MBA. PE firms are pyramids and rely on a constant churn of associates with no long-term future at the firm to handle the day to day deal execution. Business school gives them a convenient reason to kick them out every couple of years before they get too expensive. Once you already have an MBA they can't hire you for a basic associate position any more and aren't willing to give a post-MBA position (which should include carry) to an unproven commodity.
Stop guys! What are you doing? You are scaring away all of the prospects!
What do you mean they won’t make MD or go MF PE, and be a bsd. that’s their prophecy!!
Going straight to an FLDP at a F500 (with a rotation through corp dev) is 100% attainable post-MBA. Went to a non MBA business schools">M7 and we send tons of students to Amazon's FLDP every year who have no IB / cap markets experience. Also, transitioning into corp fin at a F500 after a couple years of IB is very attainable.
Would say the main differences are 1) whether you have the IB badge of honor on your resume (advantage IB) 2) much higher comp for 2 years which can help with student loans (advantage IB) 3) a less well-rounded, but more intense, finance experience in doing 2 years of IB vs. an FLDP where you rotate through 4 departments in those 2 years, building a strong network in the firm, and knowing that particular F500 company inside out (advantage Corp Fin)
It's all about perspective. To the college student with a 3.9 who focuses super hard on their schoolwork instead of being a frat-star and partying non-stop during undergrad, the idea of a post MBA associate seems stupid. "Why wouldn't you just go into IB right out of undergrad?"
But to the guy who partied in undergrad, squeaked by with a 3.0 and minimal effort, and didn't even know about this world where 20 year olds spend every day pursuing a highly coveted job at an investment bank, IB was never an option. Usually post-MBA associates realized they wanted to work in high finance after a couple years in the workforce, so getting an MBA and breaking into the industry is appealing.
If you like nerding out in finance and markets then IB is the only post-MBA job that gives you that and has a formal recruiting process (HF & PE recruiting is very informal / network driven at B school)... although being a junior banker comes with a lot of BS too.