Four years ago, almost to the day, I started work as an analyst in corporate finance. As is probably true of all new graduates, I was fresh faced and keener than mustard. In my own naive way, I was ready to handle anything and everything that could be thrown at me. I knew it meant hard work, but I was used to that, and I had a plan: two years as an analyst in corporate finance and then onto the bright lights of private equity.
In reality, I stayed in corporate finance for just short of four years and was never tempted by a move into private equity. But why did I stay on, and why did I go in the end?
Staying
The first two years I spent as a generalist (analyst), working in a number of different sectors in both client coverage and execution. I was paid two bonuses, the last of which was equal to my annual salary.
I worked on a number of deals, had exposure to senior bankers and attended countless client meetings. Even though I now had all this experience behind me, I felt I wasn’t ready to move to private equity; I still had a great deal to learn about corporate finance.
Going
As I moved towards my promotion to associate, I looked at the career progression in corporate finance and recognised that it was now set to slow down. After only three years on the job, I’m not saying that I knew all the ins and outs of corporate finance, but I had a good understanding of the basics. From now on, the emphasis was to be on gaining experience as I progressed through the ranks to vice president and then to director. There wouldn’t be many new concepts to learn, it would be about leading teams and ultimately entire projects.
The thought of being a managing director in corporate finance was attractive, but I decided I was not prepared to make the necessary sacrifices for the next 10 years.
What were these sacrifices? Well, during my time in corporate finance, I was unable to make concrete plans with my family or friends. In the end this lack of control coupled with a slow career progression made me realise I had to change my career to give me more control over my life. Most senior managing directors would regularly cancel holidays and other arrangements, and this was something I was no longer prepared to do.
Being a junior banker is a tough apprenticeship: you can lose weeks or even months of your life on a deal. But for the right type of individual, it’s exhilarating.
Three months after leaving corporate finance, I have not missed it for one second. I have many fond memories of my time as a banker, but none are sufficiently fond for me to go back in with my eyes open.
The author is a former corporate financier.
