Weekly Reader Q&A: The Age Factor, Finance Internships Abroad, And Fall Analyst Recruiting (And More Summer Internship Tips)
As the end approaches (I’m a few short weeks away from finishing up my investment banking “career”), I keep receiving interesting questions every day. My email volume doubles each week (or at least it seems that way), and while that’s bad for my free time, I could now do endless Q&A columns and never run out of topics.
I have some big plans for Mergers & Inquisitions coming up over the summer and into the fall (amazing what an extra 80-100 hours of free time each week allows you to do), so stay tuned for announcements soon. In the meantime, let’s proceed to this week’s edition of reader Q&A.
The Age Factor And Part-Time MBA Programs: How Old Is “Too Old?”
“I’m in my early 30’s and about to start a part-time MBA program at a top 20 school. I’ll be in my mid-30’s when I graduate. Since I’m making a career change and will be above the median age for new Associates, I’m worried about actually getting into investment banking.
How much does age factor into recruitment? Am I going to be at a severe disadvantage?”
Inquisitor:
Make no mistake: age definitely plays a factor in recruiting. Banks, for example, are unlikely to hire Analysts older than their late 20’s (anyone older than that would never put up with staying in the office until 4 AM and waking up at 6 AM); if you’re over 40 it’s going to be hard to break in no matter how senior you are.
However, I don’t think you’ll be “too old” to get into banking. Most Associates are a bit younger, but not by enough to put you at a disadvantage.
The bigger problem will be the part-time MBA program - banks recruit mostly from full-time MBAs, and in general the part-time programs are not regarded in the same light. I would do some research and assess the recruiting environment at your school; if there isn’t any recruiting, either consider a full-time MBA program or get started networking with alumni and friends in the industry right away.
Finance Internships Abroad vs. Staying In The US
“I’ve accepted an internship at a well-known European bank. The internship is in London and seems to be very similar to US internships; as an added benefit, I’ll be getting a lot of great contacts in Europe.
What would you think when looking at a resume of someone with my background? I do want to work full-time in New York since I was born and raised in the US - how would US banks react to an internship in Europe? Would it be positive since it stands out from other people or negative since London is much different from New York?”
Inquisitor:
Working abroad anywhere is a positive, especially in today’s world. Over time experience outside the US will continue to grow in importance, especially since the US is no longer the center of the world (see: investment bankers flocking to Dubai).
Even if the European bank is less “prestigious” (I hate that word) than its US-based counterparts, the internship itself will still be a huge positive and won’t hinder you from working in New York, especially since you’re from there originally.
I might have mentioned this before, but my experience abroad is one of the reasons I got into investment banking in the first place - it made me stand out compared to everyone else applying for the same spots.
Fall Analyst Recruiting At The Bulge Brackets
“I graduated from a top 20 university last year and have been working at a well-known (but not M/B/B) consulting firm for the last several years. I really want to switch into investment banking, but I know it will be hard given the current hiring market.
I’ve been thinking about trying to squeeze into the fall analyst recruiting cycle and interview alongside undergraduate candidates - do you think this will work? And do you think bulge bracket banks will even be recruiting analysts this year?
Inquisitor:
That seems to be the question of the hour - well, that and 2008 bonuses (I will write about my views next week).
Banks will almost certainly recruit in the fall, but I doubt that it’s going to improve much compared to 2007 - it will either stay the same or get worse. I hate to sound depressing, but people are getting laid off left and right and business is… slow… really slow. Most of my work lately has been pitching deals that will never happen.
Putting aside market concerns, many consultants do transition into investment banking and private equity. However, given your circumstances it’s more realistic to consider 1 of 2 options:
- Go to a boutique or middle-market rather than aiming strictly for bulge bracket firms - it is extremely tough to come in with a non-traditional background in a bear market.
- Go to business school and start banking as an Associate. By then the economy should have recovered (or else we’re all in a lot of trouble).
I’m not sure what you mean by “interviewing alongside undergraduate candidates” - you can’t do this since lateral hiring is a completely different process. If I were you, I would start networking and contacting friends in the industry right now and take advantage of any unexpected departures in the summer season - Analysts sometimes leave after their first year and you take advantage of this to land a job.
More Investment Banking/Finance Summer Internships
In other news, some other sites out there picked up my Summer Intern Success Guide feature on Tuesday and I saw many great contributions. Here are a few sites that featured my guide and some of my favorite tips:
Prince Of Wall Street - Advice for Summer Analysts Hitting the Desks
Besides linking to several of my posts in this post (always a good way to get my attention :), The Prince also goes into a few tips of his own - I think it’s a great idea to find the best analyst. There is a huge difference between the top analysts and those who don’t know much, and befriending the smartest guy in the room is a great way to get ahead (as long as we’re not talking about Enron).
I also like his advice to develop relationships with your staffer and the higher-ups as well as with the Analysts - Analysts often decide who gets offers and who doesn’t at the end of the summer, so you need to heed this one.
Finally, working out and eating healthy food are critical - I’ll write a few more articles on how to stay fit as an investment banker since there’s a lot of interest in this topic.
Financial Rounds - Some Quick Tips For Summer Internships (Investment Banking and Otherwise)
Besides complimenting my name (another good way to get my attention :), Financial Rounds also offers up some other useful tips for summer interns.
I especially like his tip to avoid badmouthing the competition; I’ve seen this happen with summer interns and it’s never a pretty sight. As I’ve mentioned before, summer intern competition is not nearly as intense as you probably think, so there’s no reason to badmouth others.
And never try to suck up to someone above an Analyst - we notice when you do this and will always find some way to screw you over, even if you’re not aware of it.
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Tags: Career Change, investment banking, investment banking summer analyst, investment banking summer internship, MBA, understanding investment banking
Coming Soon: Breaking Into Wall StreetRelated Articles:
- Summer Internships: What You Wish You Knew
- Weekly Reader Q&A: VC Internships, Private Equity In China And Visits To Firms
- Weekly Reader Q&A: Hedging Your Bear Stearns Summer Offer, Who Really Reads Resumes And The Value Of A Master’s Degree
- Weekly Reader Q&A: Early Interviews From Summer Offer, Analyst Recruiting Post-College, And Was It All Worth It?
The “part-time” stigma will change over time. I got into banking via a part-time (top 20) MBA program, and the fact that I balanced a full time job plus a 20-hour school commitment was a great selling point. It also conditioned me to enter the banking pace — to some the heavy workload could have been a shock, but putting in 70-80 hours a week was nothing new to me.
Well there you go, things are changing. Congrats on getting in. I definitely see what you mean in terms of selling the interviewers on how you can handle the pace/lifestyle and all.
You might have answered this before, but what will you be doing after your IB “career” is over? Hopefully continuing the blog.
I haven’t gone into much detail yet, but I will be owning and running several of my own businesses. This site will be one of them.
Looking forward to see your big plans unveil for Mergers and Inquisitions. It’s exciting to be running your own businesses.
Thanks Corinne, hope to discuss more my future plans here soon (painful last few weeks at work). Starting/running businesses is indeed addictive.
I can’t stop smiling ever since the last about 15 hours straight I’ve been on this site reading every single post b/c you have big plans for the summer!! =D=D Can’t wait!!!
Jane, glad to see you enjoy the site.