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Isn't equity research a training ground for working on the buy side where the money is made? And isn't the work very interesting? (at least for the first 8 hou

• _sword 8y ago
  It is a pathway into buyside research analyst seats, and I have a number of colleagues who attempt that path. I just don’t see that as something I’m interested in doing. There’s less opportunity to move into areas like private equity, which tends to recruit from banking, though I firmly believe networking effectively can change the odds. In terms of compensation, sell side research associates tend to work 60+ hour weeks for total comp around $120-$170k depending on where you’re at. Senior research analysts may tend towards $250k-$1mn+ depending on sector, seniority, following, and relationships with potential banking clients (though I need to stress this side of the business is highly regulated). On the buyside comp skews higher, and those that perform at good shops make good money, but it’s far more competitive now. I’ve seen a number of buy siders move into industry or back to the sell side recently as their funds cut headcount. There’s also almost no end of young and hungry bankers looking to move to the buyside and grind. Pressures include lower fee investment vehicles putting pressure on all sidies of the industry, as well as problems including widespread hedge fund underperformance.