SG
Classicist
I studied a humanities degree at Oxford and I’ve recently completed a two year graduate programe at a Big 4
consultancy, but I’d much prefer to be working in Finance. I really enjoy investment and I like work where I have
to follow high-level sector developments and industry trends.
For this reason I think I’d ultimately like to work in Asset Management or at a hedge fund. I’d appreciate some
advice on how to make the switch.
So far I’m thinking I should use this year to apply for:
1) Top MBA programs (HSW, LBS, INSEAD)
2) Sell side roles in a big-brand investment bank (what level? Are they even hiring anyone??)
3) Perhaps apply straight for a hedge fund / investment management position (this is the option I’m least certain
about. Is this even possible?)
I’d also like to know if there’s anything else I should do in the mean time. Some people have told me I should
study for the IMC, some have said I should start the CFA, some have said I should try to transfer to Transaction
Services or Corporate Finance roles within my Big 4 firm (but I worry that banks look down on these practices -
maybe I’d be better off staying in consulting??).
Advice on any of the above would be much appreciated!
Hi. The best way to make a career change into financial services is often an MBA, but this is high cost and high risk to the extent that you may graduate into a difficult market. Equally, MBAs have traditionally been most heavily recruited by investment banks, although this is changing and asset managers are becoming more proactive in terms of MBA hiring too.
It’s not clear what kind of role you see yourself taking in an asset management/hedge fund firm – an analyst/trader/marketer? If you want to go into analysis, it would probably help if you have an ACA – although I’m guessing you don’t have this as you’ve been in consulting.
In the first instance, therefore, you need to clarify precisely which role you’re interested in. It will almost certainly help you to get started on a CFA. Start by seeing up a portfolio of your own and try applying for graduate trainee programmes at investment management firms. If this gets you nowhere, think about the MBA – or an MSc in investment management (Cass runs one http://www.cass.city.ac.uk/courses/masters/courses/investment-management).
You’re effectively making a career change, so you’ll need to network heavily and do whatever you can to get experience in the new sector. Be prepared to take a short term cut in pay in order to get in.
I’m sorry but last bit of Sarah’s advice is a nonsense. With your undergrad from Oxford an MSc from e.g. Cass would be a good way to undermine your CV (sorry, it’s just true). There is also no point getting a CFA if you are not working in the industry – people know you’re clever enough but just took the ‘wrong’ job out of university.
She is right that you need to decide what you want to do in investment. Your background is also a little unclear to me – its obvious you don’t mean a Big 4 Strategy Consultancy such as McKinsey/Bain/BCG/OC&C but if you are e.g. in PwC Strategy Consultancy you’ll find it much easier to go into private equity for example. If you are in a generic, IT-like consultancy within e.g. KPMG or Deloitte, then Sarah is right, it is effectively a career change. So yes, an MBA is an option – normally I would strike out LBS for that list and suggest INSEAD or one of the top US firms, but LBS could be a route into an experienced hire position in banking. But as Sarah pointed out, it is high cost, and there are a hell of a lot of good experienced people competing for a small number of jobs at the moment (e.g. most of HBS’ intake would have worked in PE (or Hedge Fund or Banking/Strategy Consultancy) already).
Considering you are a) only 2 years out of uni which is a bit shy of MBA experience anyway by European standards and b) have an Oxford undergrad (even in Classics), I would seriously consider applying for graduate programs at banks or long-only funds (big caveat: you are too late for Sep-12 entry, but its the same for an MBA). You will struggle to get in as an experienced hire and getting a good bulge bracket bank name on your CV will open up all the above opportunities, including hedge funds. You could also consider somewhere like McKinsey depends on what you want to do in investment. I appreciate it might seem like a step backwards to start as graduate again – plus you are looking at some pretty horrible hours – but in the current climate it’s acceptable and it’s only when you are much older you realise two years’ is nothing if it means getting a 40 year career you want. On the flip-side, you will not have to take a pay cut unlike Sarah claims. I would guess you’re currently on something like £40k + £10k bonus and any front-office bulge bracket role will pay new graduates something like £45k + £25k+ (if you get a bonus of course). Lastly, I would get onto Oxford Careers Network right now and ask anyone on there for a coffee for some advice rather than rely on eFC, and make sure this is what you want to do.
Best of luck!
P.S. Sorry I did not answer your questions re: TS or CF in a Big 4. They are more likely routes into some times of investment funds, but a) depends on the fund, but many would want a banker anyway and b) especially in TS, there is no point doing this unless you’re willing to commit for 2-3 years and get ACA qualified. If consultancy isn’t what you want to do long-term don’t stick around thinking it will build your CV, but if you’re applying for jobs now, there’s no point moving IMHO. But this is a bit less black and white.