Finance Jobs with OK Work / Life Balance
VloĆŸit
- Äas pĆidĂĄn 30. 05. 2024
- đĄ Get the #1 Private Equity recruiting course, which comes with 3-statement LBO model tests, mega fund case studies, and headhunter coverage: bit.ly/PF-PrivateEquity
đ Free recruiting resources: peakframeworks.com
It might seem counterintuitive to go into finance and then optimize for work / life balance... but it is theoretically possible. In this video, we're going to talk about the pros and cons of three job categories in finance: 1) long-only fund / mutual funds, 2) pension funds / family offices, and 3) investor relations / business development. These roles either rely on more stable capital or have business models where you aren't expected to work on extremely short timelines.
0:00 - Factors Influencing Work / Life Balance
2:43 - 1) Long-Only Funds / Mutual Funds
4:39 - 2) Pension Funds / Family Offices / Endowment Funds
7:30 - 3) Investor Relations / Business Development
Peak Frameworks is a business career prep service started by Matt Ting and Patrick Fong, who have each spent several years working in investment banking and private equity in New York and Silicon Valley. Matt and Patrick met at Evercore, a top tier investment bank, and over the years have tutored and coached dozens of candidates to land their dream business job.
Matt Ting: / matthewting
Patrick Fong (HBS 2021): / patrick-fong-0b773041
#MutualFund #PensionFund #InvestorRelations
Watching this as Iâm doing a pitch and a model after pulling all nighters as an IB analyst. There is hope!!!! (2-5 years from now). Ok back to work
Good Luck
Legend
Why are you doing this to yourself bro
@@Adam-do8ny Let people do what they want bro.
@@Adam-do8ny money
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
@@rachealhubert74 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@rachealhubert74 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
@@rachealhubert74 I will give this a look, thanks a bunch for sharing.
I think financial analysts, financial reporting, finance manager, accounting manager/controller, etc. in tech/industry/private companies are good too. Pay is in the six figures with better hours. Jobs in companies that are client facing tend to be way more stressful (Bulge Bracket/ Big 4/ Big Law/ MBB). The goal is to do these stressful jobs for 2-4 years then exit to private/industry and enjoy life.
investing over here is frustrating
total noob on investing in crypto and stock, I need a tip how to start
@@zenababubakar1614 I'll suggest you reach out to Vivian Klaine Morgan ,she is a real investment prodigy
It's fascinating to hear that someone here employ madam Vivian's services. She has been managing my investment for months now
There is this CNBC news host who spoke so highly ofđVivian Klaine Morgan and her loss prevention strategies
Love this!!
People donât talk enough about the importance of who the financiers behind buyside funds
Also huge benefit of working in IR is if you have an affinity for the underlying business (work gets alot more fun if you love Ferrari and you canât stop raving about the defensibility of the brand)
Great video and great insights, Matt. One thing to point out though, Pension funds get there money from the taxes collected by the local or state/provincial governing body. The aspect of "taking money" from pensioners is that they are promised that money after their term of employment as teachers, civil servants, etc. In the 90's my county pension fund in southern California went bankrupt (actually filed) because the fund managers made bad choices!
For me, BD/IR is a no for me. I would prefer Family Offices or smaller Real Estate PE funds. Fewer people working there, so the smaller money taken in is divided amongst fewer people. Plus work life balance is based on how aggressive the fund or syndication is finding deals and generating returns.
Excellent points!
Very insightful Matt, thank you!!!
Thank you for your insights!!
Could you do a video on investor relations/marketing in both private and public markets?
Hi Matt. Thank you for the videos! What do you think of DCM? Work/life balance possible? And what are the hours like typically?
Great content- a question that lots of people are thinking about but I've seen few, if any answers on YT
Matt I love all ur videos and ur haircut has gotten better haha!
Barber blessed me
How do you feel about wealth management/private banking?
Dude, the discovery album scored you major homie points in my book.
Absolutely foundational for electronic music and my music taste
Hi Matt! Thanks for another great video. Will you consider making a video on how to be a successful intern? There is still a few months before summer analyst program starts but Iâm really curious what qualities are the companies looking for on IB SAs. Thank you!
Sure, that's a good idea! It's mostly just being careful with your work and having a good attitude, but I can go into specifics in a video.
Thoughts on Corporate Banking as a work-life balance job? I feel like it is much easier to have a life doing that versus IB for example. Compensation isn't the worst either
Corp banking seems fine. It seems like a tolerable IB that builds a similar skillset. I would expect closer to 50-60 hours. Exit opps seem a lot worse though, seems to attract more bank lifers.
Pensions and endowments are a very interesting places to work. From my experience in the sector you get far more exposure to different asset classes and at a junior level you'll likely be working across most classes. It is hard to find a geographic specific job sometimes as they are very lean and recruit for new positions rarely. Advisory and research consulting for pensions is another great option with more concentrated jobs (names like Cambridge Associates, stepstone and Hamilton Lane).
Hi Matt, from a South Asian Country, currently have experience in Supply Chain. Can I think of changing career to finance at 30 years old?
For the long-only funds, would add that although a bearish market makes it hard to generate returns, most markets still have specific sectors which will be up / uncorrelated with wider market
Can you please speak about / lmk your opinion on secondaries? Was surprised you didnât include here. From what i can tell sounds like a solid lifestyle given no real diligence responsibility. Obviously lower âprestigeâ and real PE job experience. Comp takes a big hit too. But would be curious to know your thoughts
It seems good, but it's a relatively newer space and I'm still reserving judgement on it. It seems like you're at 70% comp for 70% hours of PE. Exit opps seem worse / you stay in secondaries and it is a relatively siloed skillset.
There's been a ton of growth and new secondaries funds popping up, but I don't know how good the strategy will do in the future. It seems by definition less value creating than PE / VC. I have a lot of friends who went to secondaries funds that seem happy, but it seems like it's no longer the career fast track.
A little bit off on the E&F and Pension space. These are the limited partners in private equity funds / hedge funds / etc. most of the job is underwriting fund investments, not making direct investments in companies. Another big portion of the role is portfolio construction - building a diversified roster of managers that usually takes on the risk profile of a 70/30 stock bond portfolio when itâs rolled up. Co-investment is by and large investing alongside managers and most offices do not do primary underwriting. You also are not able to invest alongside your pool of assets (you can with family offices).
Thank you, that's helpful context. I know a lot of pension funds invest as LPs, but it seemed like many pension funds bought assets directly when I checked their portfolio / annual reports. I believe CPP, GIC, Temasek, and PSP all have direct private equity groups having seen them across deals and in the news. On the other hand, I know funds like CalPERS act more frequently as an LP into other funds. My impression is that the strategy depended a lot based on the pension fund.
@@PeakFrameworks Yeah, some of the larger pension funds do have dedicated direct investing groups, but thatâs not the norm. Some endowments might also have direct real estates portfolios (MITIMCO comes to mind). But fund investing as a an LP is definitely the most common type of investing at each of these places. Youâll definitely see a ton of E&Fs and pensions show up in cap tables because if co-invest, but thatâs largely PE fund driven deal flow. This is also a relatively recent phenomenon in most cases. Iâm biased, but for my money itâs the most underrated and unknown career paths in the investment world. Work life balance is great and you can be making $500k+ starting in your mid to late 30âs.
Awesome, thanks for the great info
Thanks Tim for the insight. How difficult do you think it is to move from an endowment fund to a FoF (more corporate environment) like Alpinvest, Harbourvest etc assuming you are doing primary fund investing?
What is a âBiz Devâ role? Like what is another name for that sort of job??
Hi! how about roles like corp dev and corp strategy? are they similar to IR?
We have a video on corp dev coming out that should answer more questions! Corp dev is also solid. Would be in this category too, maybe a bit more hours than the other categories as it's essentially inhouse M&A. Corporate strategy really really depends on the company.
Thought's on Commercial Bankings? Thanks for these vids!
I don't know as much about commercial banking, but it seems like it would fall in this category of decent work / life balance. I think exit opps are generally worse and it seems like a slower-paced industry.
Hey Matt, Iâm a finance major and only have two semesters left, I plan on pursuing a masters degree and I work as a associate banker right now. Iâm trying to get into private equity but havenât done any internships. Would you have any advice for when I graduate as to what I should do in order to prepare or start my journey into PE?
I think PE internships are close to vital if you want to graduate with a PE job. Otherwise you kind of have to play the long game. From what I've seen, it often takes associates in IB a few years to even start getting buyside opportunities. Most do 2-4 years before they're able to effectively recruit. Post-masters recruiting is very ad hoc
@@PeakFrameworks Thank you. It seems I need to get into an internship as soon as possible.
Hey Matt, I was wondering about your opinion on corporate finance roles. Do they have the better work-life balance and decent earnings potential?
Yes they do, they're good jobs. Note that corp fin is a pretty loose term so the pay and lifestyle can vary a lot between different companies. It can be basic FP&A, supporting the CFO, sometimes some M&A stuff, etc. Generally though hours are a lot better than traditional finance.
We have a video on corp dev (not fin) coming out in a bit that will address this.
what do you mean by corporate finance roles ? working in the financial Division of a large companies ?
Thank you !
Hi Matt, what software do you use to edit your videos? For example, the animations at 1:23 is it advanced PowerPoint animations?
I stopped editing my own videos a few months back. My editor uses After Effects and Premiere Pro. I used PowerPoint and Premiere Pro in my older videos!
Hey Matt, do you have any insight into the potential of data science/big data in finance? I am considering doing data science as a dual degree at Ivey Business School, and I want to know the job scope in that overlap, especially in the fintech space? Thank you!
It's still a bit too new and I think jobs usually end up skewing one way or another (more data or more finance). You could work at a quant fund or data scientist at a hedge fund. Both have great pay
Hey man! have you made a video on hours of associates + in IB? if not do you think you can make a breakdown video?
There is an IB hours video, but associates are generally 5-10 hours per week less than analysts at a given firm. Analysts are usually 65-85 hours, so associates could be 60-75.
Great video! Thoughts/insights on strategic finance roles?
Also great jobs, though they seem to be a lot more flexible in nature. Generally good work / life balance and it's more of a direct CFO track. Hard to distill because it really depends on the company - I've heard very different things from different people.
@@PeakFrameworks how to get to strategic finance roles? is it risk management?
Hi Matt ! I have been trying to get into finance for a while now.With a bachelor's in CompSci and a master's in econometrics, I only have a professional work ex of 9 months. That too an internship with a fintech company. Banks mostly have been turning down my application. I am 27 now and not sure if I should quit my dream of landing a job in finance
You likely have to change your approach up if this much time has passed and you only have one internship. Reach out to alumni of your econometrics program, do virtual internships for small funds, start doing finance extra-curriculars if possible. I think people would be receptive to your background, so just make sure your recruiting approach is polished.
@@PeakFrameworks Thanks Matt.
Thanks for the useful info.
Bruh you didn't even see it
@@lucasooo3606 All his content is useful so I was just commenting what I already knew to be true :)
Is it possible to lateral from an endowment fund to IB and can you go directly to PE/HF from endowment funds?
I think endowment fund is more like an end state - I'm sure it's theoretically possible to move to IB, but it'd be very uncommon. Yes, you can do PE/HF to endowment fund. That's probably one of the most common paths.
@@PeakFrameworks Appreciate the reply Matt. Curious how difficult do you think it is to move from an endowment fund to a FoF (more corporate environment) like Alpinvest, Harbourvest etc? Thanks.
@@PeakFrameworks And what's your thought on working for big PE FoFs
what would mid level bus dev roles pay? in a market like NYC
I think mid level (4-8 years of direct finance experience) is going to be like $250-$450k all in. It's fund dependent, but I think it's often like 60-70% of what deal team professionals make.
the IR team at my team works crazy hours especially around earnings
Damn I'm sure it's rough at certain places - from my view it still always seemed better than the deal teams though.
@@PeakFrameworks I've worked in IR at multiple HFs / FOFs and it's always really busy because it's considered a cost that needs to be kept to a minimum. I'm working in ODD now and it's both more relaxed and higher paying. Just my 2c.
What do you think about REPE?
It generally seems like a grind to me based on my friends' experiences. I don't know a ton of people in it though. Seems like a good field that builds a relatively specialized skillset.
Thoughts on private banking / wealth management?
I think there's huge earnings potential, but it's like sales in that you have to be great at your job. It doesn't seem as lucrative at the junior level when you're still building out your network, but it seems extremely comfortable for senior level people.
if it's a firm like jp morgan then it's a solid place to be, i wouldn't recommend a wirehouse
What would it be like to work as an Investment banker on a deal like Microsoftâs $68 billion acquisition
Probably extremely busy for a long period of time. But deals this big are often driven by ego / desire at the top level, so it's less about the analysis being right and more about doing an enormous volume of work in a short amount of time. Behind every mega deal is tons and tons of sweat
Iam in my late 30s and just got into Ibanking, grinding my ass off . Font know how he is saying bout making 300k in early 30s
Bankers are making 300k in their mid 20s especially in this market
Iâm curious how you got into IB at such a late stage. Iâm in my early 30âs and I was thinking that Iâm too old to enter the industry, given IB analysts/associate are in their early to mid 20âs. Interested to hear your insights. Cheers
@@british021 if u go the mba route then its still very acceptable to enter IB in your 30s as an associate
@@MichaelZLim Great to hear! I wasnât sure if that was still the case as Iâve heard so many stories of being âtoo oldâ regardless of your qualifications etc. But great to hear that thereâs still an opportunity to pursue this. Iâm currently living in Finland and working in corporate finance and realistically will probably be ready financially and career progression wise (for the MBA applications) by the time Iâm 35/36, so fingers crossed!
Hm, I think it's pretty common to make >300k in your mid to late 20's at any BB / EB. It was posted that GS VPs made >$750k.
your skin is great no homo
Funny how some people blame their jobs, bosses, or companies when they have no work-life balance when in fact they should look in the mirror.
Yo, please do me a huge favor and follow @peakframeworks on Instagram. I'll post fun and relatable memes! instagram.com/peakframeworks/
Deal but only if you promise to consider pulling a litquidity and opening up shop as a HH haha