Surviving Layoffs: Strategies for Successful Career Transitions in Investment Banking
Hitesh Patel
Founder | Middle Market Exec Search & Exec-Led Platform Creation | Partnering with PE Firms & Family Offices
Surviving Layoffs: Strategies for Successful Career Transitions in Investment Banking
By Hitesh Patel, Founder & Managing Partner, Auctus Search Partners LLC
The current economic climate has introduced substantial shifts within the investment banking (IB) sector. Downsizing at banks of all sizes has become common due to factors like economic uncertainties, high inflation, rising interest rates, impending recession fears, past over-hiring, and often, simply a lack of deal flow. As a recruiter who has successfully placed over 100 bankers full-cycle with banks of varying sizes, I've seen firsthand how this dynamic landscape poses unique challenges and opportunities for those in IB considering a lateral move or a career change.
Preparing for a Lateral Move within Investment Banking
When considering a lateral move within IB, you should prioritize the following aspects:
? Leveraging Your Background: Enhance your candidacy by capitalizing on your unique experiences and skills. Your sector-specific transaction experience, types of deals, experience with different deal sizes, and location can make you a 'plug and play' candidate, simplifying the transition process for potential employers.
? The Role of a Deal Sheet: A comprehensive deal sheet can be pivotal in highlighting your expertise. This standalone document, separate from your resume, should clearly delineate your transaction experience, facilitating a quick comprehension of your capabilities by potential employers.
? The Interview Process: Depending on the level you're targeting, prepare for varied challenges. For Analysts and Associates, you may encounter a case study as part of the interview, underscoring the importance of sharp modeling skills. VP roles or higher should anticipate discussing their lead execution and junior resource management skills. SVP, Director, or MD roles should be prepared to illustrate how they can drive revenue growth, depending on the size of the bank.
? Compensation Expectations: Compensation structures in investment banks can vary, influenced by elements such as firm size, location, the time of year, and financial health. Don't quickly dismiss roles offering lower base salaries. The total compensation package, factoring in substantial bonuses or other performance-based incentives, can still be competitive. Moreover, factors like work-life balance, supportive culture, significant growth potential, and job stability may offer more value than a higher base salary alone.
? Choosing the Right Bank: The bank's prestige should not be your sole consideration when selecting a potential employer. Assess the composition and background of the senior bankers, as their past roles and market relationships can significantly impact your future deal flow and job stability. A team of bankers from larger or reputable banks or those with successful industry roles usually indicates more consistent deal flow, a solid work product, and established processes. Also, evaluate the role you would play within the team, the growth opportunities, and the work-life balance. When choosing your next step in banking, consider not just immediate gains, but alignment with your long-term career goals and overall job satisfaction.
Navigating the Role of Third-Party Recruiters
Third-party recruiters can be invaluable allies during your career transition, provided you choose them wisely.
Here are my thoughts and advice, distilled from numerous discussions with candidates over the years:
? Proven Track Record: Choose a recruiter with a successful track record in your desired field. Don't hesitate to ask for examples of their successful placements and to delve into their personal track record in placing candidates in roles similar to the one you're targeting. The size of the recruitment firm they work for or its prestigious name does not reflect their competence or value add. Larger search firms sometimes employ numerous recruiters with limited industry experience, a factor that can be significant when choosing someone to represent you in your career search in the market.
? Solid Client Relationships: A recruiter's relationships with their clients can offer you a unique advantage. However, be proactive. Ask specific questions about their relationships: their duration, successful placements, the nature of the search (contingent or retained), and how long the position has been open. Job hunting can be challenging; avoid compounding the stress by working with recruiters lacking transparency or deep industry knowledge. A good recruiter should partner in your job search, not pose as a hurdle.
? Ethical Practices: Beware of recruiters who resort to questionable tactics, such as submitting your resume without your consent. Vet your recruiters thoroughly to ensure they operate with professionalism and integrity.
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Networking and Proactive Engagement
Being proactive in your approach and specifically targeting hiring managers or decision-makers can greatly enhance your career transition. In the realm of investment banking, VPs often spearhead recruitment efforts, whether for a boutique bank as a whole or for specific groups within larger institutions. Engaging with these key individuals puts you directly on their radar, potentially streamlining and accelerating the hiring process. It's crucial to remember that effective networking is an invaluable tool during any job transition.
Considering a Career Change
If you're contemplating a career change, manage your expectations. Transitioning into buyside roles, corporate development, or corporate finance isn't always straightforward, especially when competing against candidates with direct or more traditional backgrounds. These transitions often require specific skill sets and experiences that can differ significantly from those needed in investment banking. However, leveraging transferable skills, network connections, and strategic positioning can make the transition achievable and worthwhile.
The Two-Way Street of Interviews
Remember, interviews serve a dual purpose. They're an opportunity for employers to assess you, but also a chance for you to determine if the role and the company align with your career goals. Be proactive and ask about deal flow, team structure, culture, growth potential, role expectations, and the reason the role is open. If the interview is progressing positively, don't hesitate to express your strong interest and ask about the next steps. This strategy demonstrates your enthusiasm and can leave a lasting impression. Your assertiveness and due diligence can help ensure you secure a position that aligns perfectly with your skills and career aspirations, rather than one that falls short of your objectives.
The current climate may be challenging, but with a strategic approach and the right resources, you can successfully navigate your lateral move in investment banking or career change out of it.
Founder & Managing Partner I Auctus Search Partners LLC
Email: [email protected]
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