East Cost vs West Coast vs Midwest Investment Banking… is one better than the other?

So I guess when I learned about what investment banking was I automatically assumed it only really existed in New York… I couldn’t have been more wrong. These days it seems as if new investment bank offices are opening up in locations we would never expect, which bring us to the discussion is one location better than another for investment banking. I actually won’t be answering that question for you because I honestly believe it depends. It depends on what type of person you are, what you value, and what you want to do in the future. What I will you be telling you today is about the differences you can expect by pursuing a career in investment banking in each of these locations, and you can decide what place sounds like the perfect fit for you.

One of the biggest differences between these location, if not the biggest is the industries that each of these location focus in on. Banks in major cities for finance each specialize/focus on different industries.

1. NYC — Diversified
2. San Francisco — Technology / Healthcare
3. Chicago — Industrials
4. Los Angeles — Gaming & Lodging / Media
5. Houston — Oil & Gas

Since each city focuses on a different industry, there really cannot be a “best” location. The “best” locations depends on what you would want to focus your finance career on as chances are you might be working in the same finance industry that you originally start in. However, if you are not sure where you want to go or what you want to doNew York might be your best bet due to the diversity in opportunities one will find there.

This brings us to the next point of discussion. If cities have different industry focuses, then the recruiting process must be harder or easier in one location compared to other. The reality is that investment banking recruiting is pretty much the same process no matter where you are recruiting. No matter where you want to go, you will still have to network with current analysts and associates and you will still have to interview. And for the most part the questions from region to region will not really be that different either. The only subtle difference is that you need to show interest in the specific industry in the regional bank you are focusing on, but in no shape of form do you need to be an expert in this industry.

The last point I want to bring up is exit opportunities. The field of investment banking is popular for the exit opportunities it provides for young people still fresh in their careers in finance. This brings up the question: are some of my exit opportunities limited if I am not working in New York? The answer to this question is yes and no. More people from New York do recruited into mega funds but that is simply just because New York is a bigger financial district. Numerous people from Chicago and the west coast still get offers into mega funds. The main dilemma with exit opportunities is that it is difficult to transfer locations, as it is harder to network with firms further away and many times just easier to find a job where you are already working. Here are common areas investment banker exit to after there two years in a respective location. In no way are these the only exit oppurtunities bankers receive in this location, as the firm and group you work in most likely plays a bigger role in exit oppurtnities than the region you are employed in.

1. Houston — Energy Focused PE firms and Hedge Funds
2. San Francisco — Tech Focused Funds / Tech Starups
3. Chicago — Industrial Middle Market Funds
4. New York — Diversified

I hope from reading this, you realized that at the end of the day investment banking is still investment banking no matter where you go. The decision between choosing where you want to recruit for investment banking has many different factors and everyone needs to figure out what is best for them. And yes, I purposefully did not answer which region I prefer the most. East Coast vs West Coast vs Midwest… the choice is yours.