To Finish CFA or not to Finish CFA

Title says it all. I originally worked in ER, and had taken the first two levels of the CFA at that time, as it was more relevant to my job and my employers also paid for it. I switched to IB however (Coverage, M&A focus) and have since been wavering on whether to dive in to finish level III. Part of my thinking is the "in for a penny" mindset. But is there any real benefit for my exit opps from IB as an associate these days if I have a CFA attached to my name?

 

I have my charter (started career in buyside equities) and this is a hard question. I generally vehemently encourage bankers not to waste time on it. It essentially provides zero career value in banking and PE, and thus would be a huge waste of very limited time. However, you only have one left, and frankly, it's the easiest of the three, so it might be worth pushing through for 4-5 months just to get the letters. Does it help your career / get jobs? No. But, people do respect it to some degree (finance people know it's impressive / hard), and the remaining investment to you is pretty low (assuming you can pass in one try). 

 

Based on the most helpful WSO content, here are some insights regarding the value of completing the CFA for someone in Investment Banking (IB) with a focus on exit opportunities:

Key Considerations:

  1. Relevance to Current Role:

    • The CFA is highly relevant for roles in Equity Research (ER) and Asset Management. Since you have transitioned to IB with a focus on M&A, the direct applicability of the CFA might be less pronounced.
  2. Exit Opportunities:

    • Private Equity (PE): While the CFA can demonstrate strong analytical skills, PE firms typically prioritize IB experience and deal exposure over the CFA designation.
    • Corporate Finance (CF): The CFA can be beneficial, especially for roles that require a deep understanding of financial analysis and valuation.
    • Hedge Funds (HF): Similar to PE, hedge funds value the CFA for its rigorous financial training, but practical IB experience is often more critical.
    • Venture Capital (VC): The CFA is less relevant here compared to an MBA or direct VC experience.
  3. Professional Development:

    • Completing the CFA can enhance your financial knowledge and analytical skills, which can be beneficial in any finance-related role.
    • It can also provide a competitive edge in certain job markets and signal a commitment to professional development.
  4. Networking and Credibility:

    • The CFA charter can enhance your professional credibility and expand your network within the finance community.

Conclusion:

  • If you are considering roles where the CFA is highly valued (e.g., Asset Management, certain Corporate Finance roles), completing Level III could be beneficial.
  • For traditional IB exit opportunities like PE or VC, the CFA might not significantly enhance your prospects compared to your IB experience.

Ultimately, the decision should be based on your career goals and the specific roles you are targeting post-IB. If you believe the CFA will add value to your desired career path, it may be worth completing. Otherwise, focusing on gaining relevant IB experience and networking might be more advantageous.

For more detailed discussions and personal experiences, you can explore threads like IB Associate and VP Exits - Where are you now?.

Sources: IB doesn't have as much exit opps as this website made me believe, https://www.wallstreetoasis.com/forum/venture-capital/founding-a-startup-exit-opps-if-things-go-under?customgpt=1, IB Associate and VP Exits - Where are you now?, IB Associate and VP Exits - Where are you now?, Why the focus on exit opps?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

I think you might approach it in this way
- is it needed (prob not).
- people will hire you because of it? (prob not).
- does it harm to have it? (Def not, at worst you still benefit from it).
- other CFAs members will give you a minimum or recognition

But
- shows commitment to others.
- you show commitment to yourself (I am sure if you don’t do it, you will often think whether you should do it or not) and it shows that when you start something you are getting it done.

It might sound a bit philosophical, but I think it’s a matter of mindset and in the long term if you used get things done it’s better than not, irrespective of the practical relevance of the charter itself.

If you graduate in math from a target school: people assumes you are smart and you need to really prove if you are not, while for all the others colleges you need to prove to be good. Now CFA is not a major in math from MIT, but at a different level people assume you have a certain understanding of companies, markets etc

 

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