Unless you are starting your own fund or have a family member doing so, some sort of networking will be a crucial component of landing a great job on the buy-side.
As we’ve discussed previously, recruiters frequently get queried about moving to the buy-side from seemingly everyone on the sell-side. Too many bankers, the buy-side has taken on the aura of the Promised Land. While milk and honey don’t flow at most buy-side shops, low turnover, hefty fees, and somewhat more manageable hours make things look pretty appealing on the buy-side. All the more so if you have been racking up 16 hour days six to seven days a week at a bank.
But how do you find a role in an industry known for being lean and doesn’t recruit at a scale anywhere close to that of the typical investment bank?
Leveraging Business School to Enter the Buy-Side
Getting an MBA from a strong finance program is a great place to start. While you are in that MBA program, do some or all of the following:
- Join the investments club
- Participate in pitch competitions
- Study investment strategies
- Study portfolio management strategy
- Get to know your finance professors
- If you can’t afford to make your own investments create a mock portfolio
- Hold yourself accountable for these investments by preparing investment recommendations. Create a template and fill it out for each pick.
- Connect with alumni via LinkedIn
Networking and Other Tactics
Already done with an MBA or not ready for grad school yet? No worries, get on-ramping into a buy-side job by doing the following now:
- Prepare for and get your CFA
- Prefer Alternatives? Consider getting your CAIA
- Start investing, or if you can’t afford it, create a mock portfolio
- Hold yourself accountable for your investments by preparing investment recommendations. -Sorry, “I bought it because I read about it in a Reddit chat room” won’t work. Create a template and fill it out for each pick.
- Read up on investment strategies, figure out what investment strategies resonate with you.
- Are you a bottom-up, fundamental style investor?
- Does a top-down strategy resonate?
- What about behavioral finance?
Parlay that Sell-Side Job into a Buy-Side Job
Due to sheer numbers, most folks in financial services will start their careers on the sell-side. The firms are big and actively recruit newly minted undergrads and MBAs. Whether you are a banker, a sell-side research analyst, or in some other role, the buy-side is a part of your customer base. Get to know them. Become a valuable contact. Whether you get to know these folks as a part of your job or more informally. Display your interest in the whys and hows of the buy-side. Ask questions. Pass along interesting, helpful articles and research. If you prove that you are helpful and have a sharp eye for differentiated information, your buy-side contacts are likely to think of you if they know about an open position. It should go without saying that you aren’t passing along the top a headline from the Wall Street Journal and certainly not stock tips from Reddit.
Not on the Sell-Side?
Possessing a sell-side job is by no means a prerequisite. It’s not like passing the bar for a lawyer. If you are a management consultant, a corporate attorney, an accountant, or something else and are also passionate about investing, don’t count yourself out. You are still on the right track. You can use all of the tactics above to hone your skills and form a network that will give you a heads up when a job opens up.
Don’t Discount the Mutual Fund Route
While these firms might not seem as exciting as working at a Hedge Fund or being a VC on Sandhill Road, mutual funds and rating agencies employ a ton of folks. If you really need to rack up some experience, this might be a great place to get your feet wet while building your skills and establishing a network.
Need more help putting all of the above into place?
You aren’t alone. We would be happy to help you. We understand the financial recruiting landscape and have extensive experience working with hiring managers at banks, hedge funds, private equity, and venture funds. We can help you refine your strategy and guide you from your first informational interview to your first day at a great buy-side firm.
Getting the Offer Services
- Clean-up, reformat, and retarget your resume so that you secure more interviews
- Linkedin profile analysis
- Sample mock interview questions
- Sample technical interview questions
- Target Company recommendations
- Target Company Prep Exercises
- Mock-interviews
- Develop a customized networking strategy
- General guidance and support
We know the banks and know what they are looking for. With our guidance and support, we will help you navigate this ultra-competitive job market and land your dream role.