Product vs Coverage for Career Investment Bankers
Most of the threads on this subject focus on exit opportunities, but what if you want to stay inIBlong-term? This is obviously both group and bank-dependent, so we'll need to speak in generalities. What types of people and skillsets tend to work best in each group?
The reason for the post is that I am an incoming Associate and will start as a Generalist before being placed in a Product or Coverage group. I am less concerned about hours/pay and more concerned with fit.
Comments (27）
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我最初怀疑的是定量与定性作品，因此感谢您的澄清。
What really defines a "quantitative" skillset though within banking? Most of the math is high school level stuff, it seems as if the main substance behind the models is just assumptions, which seem more dependant on sector understanding, no?
这是一个巨大的毯子声明
我会说定量与定性不是黑白的。根据公司的不同，一些覆盖范围集团在其他并购中进行了更多的建模。
问题是您是否想在特定部门或结构/过程/执行中深入膝盖。每个人都有利弊。
I've worked inECMand now coverage.
overall, coverage is undoubtedly much better for truly understanding clients and owning the client relationship. In a way, the coverage banker works for the client and the product banker works for the bank.
That said, I've seen many coverage MDs who started in product and vice versa.
在产品组中，您可以更快地晋升，中级保留率在产品组中较差，因此，如果您坚持下去并饿了，通常会在每个步骤中快速跟踪，并有机会成为MD比覆盖范围年轻得多的MD。
you should also think strategically about the peers you'll be fighting against for promotions and clients. I say this because the generalization is that coverage bankers are more driven / intense than product bankers, but (assuming the generalization has some merit) you can use this to your advantage and choose the path of least resistance.
This is great information, thanks!
Is it possible to her promoted to vp early or is it still the standard 3 years as an associate?
怎么会RXfit into this? Treat it like a standard product group?
Worked in a product group, good chunk of EDs struggle moving away from a pure execution role into a fee generating role.
由于您从事的工作，因此在覆盖范围内似乎更容易建立关系，从而更加平滑。
上面的其他点也非常有效。
In my experience product calling officers (and juniors) tend to have much more balanced lives and better work life balance. There's probably some trade off in comp at the senior levels but not enough IMO to justify WLB trade-off and coverage officers are literally bringing you business (yeah yeah product pitches too but it's the same half-assed spiel every time). The downside is product guys tend to have less job security when the capital markets tighten up and when there's a economic downturn. All things considered, if I were to go career banking route I would personally probably choose product over coverage.
I've heard slightly differently (though I'm at a MM) and my info is from someone about to make Md:
- 覆盖银行家长期赚更多的钱（收入归因于他们）
- 保险银行为客户和产品银行家的客户工作是保险银行家
-Coverage bankers have better WLB (harder to take vaca during execution)
- 在高级层面上的工作变得更加有趣（州长，而不是面向过程）。虽然在初级级别上不太有趣，因为您正在做主意和维护comps
-as someone said, more job safety assuming you can hold onto relationships
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如果你在谈论银行严格segregate industry coverage vs a stand-alone M&A group, it's definitely better to be a senior in industry coverage. He/She who brings the deals in gets paid the most, end of story. Also, in downcycles, execution bankers get cut first because they're not taking client relationships with them like if you cut a coverage rainmaker.
Very good to know. I was leaning coverage before this, and your and others' replies are very helpful.
The correct answer is coverage in a group that does its own M&A execution. Especially if you're going to MS (my guess since they are one of the only ones that still has a pool system) as the M&A group's culture is abysmal.
Product MDs eventually specialize in an industry and get the coverage exposure it just comes kind of later in your development as a banker. This is especially true for theBBSbecause a lot of them have industry clients on retainer and do repeat deals with them. You should go coverage if you really love a specific industry but generally M&A is the better choice for understanding the deal execution
许多评论者在谈论产品ECMand a few are talking about M&A. The two are very different in terms of how interesting / strategic / intense the work is so probably not the best to bucket both under "product" for purposes of comparison to coverage.
如果您在MS的覆盖范围和产品之间做出决定，则可能会考虑并购与覆盖范围。ECM不与其他两个合并。
In my opinion, at the junior level M&A>>Coverage just in terms of the type of work you get to do and the learning experience (modeling, M&A process work, diligence analysis vscomps，，，，CIMwriting, pitching, IPOs)
真的无法与MD级别交谈，但似乎并以与客户关系的关系，M＆A MD最终与Coverage MD非常相似
I think everyone will unanimously agree that if you find managing a due diligence tracker, uploading files into adata roomor analyzing how many buyers have clicked on x or y link in Intralinks more interesting than writing the positioning section of aCIM，在产品组与覆盖范围组中，您会更好。
What aboutECMandDCMvs覆盖范围？并购被分解为我要去的覆盖范围，而MS并不是我要去的地方。
除非您真的喜欢债务或股权覆盖范围要好得多
Appreciate the response. Definitely leaning this way.
Frankly, coverage bankers are the ones who see the most success as it relates to long-term banking careers. Being a driver of revenue and having your own book of clients is invaluable. As a coverage banker, you'll lean on product teams to execute on various opportunities you present to your clients vs being a lifelong product banker, you're relegated to being an execution guy in most situations who isn't really driving business. That being said, the best product guys I've seen at the senior level are those who are inseparably tied to the coverage guys given their commercial abilities and make themselves integral in the process of selling the firm to potential clients along with coverage bankers.
Totally agree with this but something just to consider is make sure you really love the industry you are covering. In an M&A department you can get exposed to different industries and figure out where you want to be long term. If you hate your coverage its unlikely you make MD.
Totally agree - only caveat to that is that the M&A team is generally seen as a product partner who are bought in after a relationship has already been made with a coverage banker. Of course, a good M&A pitch from a bank will often include the M&A team in the dialogue from the first meeting, but it is the coverage banker who will get most of the credit for any deal which takes place.
It's difficult for budding M&A MDs sometimes given there may not be room for multiple product specialists at the senior level. But if an M&A MD is strictly attached to a specific industry group (ie. Managing Director of Healthcare M&A or the likes), then you'll have much more luck making a career specifically in M&AIB。Feel free to provide thoughts
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