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For the people who are that shallow to look down on other divisions based on perceived prestige, it’s all about $$$$. By that metric, the highest paid people are likely the BEST in PE, HFs, bankers, traders. But there’s a huge range even within each group
I agree. I was curious because I wanted to understand what the hierarchy was
Every industry is a little different… But assuming you’re talking front office roles, see below.
IB, PE + S&T will all be similar something like:
Intern -> Analyst (1,2,3) -> Associate (1,2,3) - VP -> Director/SVP -> MD/Principal/Partner
HF/Prop firm will be similar something like:
Intern -> Analyst -> Senior -> Port. Mgr. (PM)
Corporate/back office roles/F1000 will typically be something like:
Intern -> Analyst -> Senior analyst -> Manager -> Senior Manager -> Director -> VP -> SVP -> C suite
Generally the front office positions, aka, positions working with clients to generate revenue. At an IB, this would be the FO deal teams, aka “Investment Bankers”, each firm is different, and they may be split up by client industry, product type, or just “generalists”. Usually FO groups in IBs include “M&A advisory”; “ECM”; “DCM”; “Lev fin”; “restructuring”; aka teams that sell services. Similarly, S&T teams who generate revenue…
In PE, it’s the investment teams, generally not the Op/port co teams. In a HF, it’s the PM’s and the people under them. For a consulting firm its the actual consultants and partners who work on client engagements. In corporate/F1000 its product people/sales people but generally this is perceived in the finance world as a few stages of “prestige” below the aforementioned finance gigs.
Basically, if you work on the top of a P&L (aka generate revenue), you’re in the “cool” part of a business. But, prestige is relative, and just because others perceive it as prestigious doesn’t mean its a good fit for you. There are plenty of skills and talents required in the back and middle office of all businesses, and fundamentally revenue could never be fully delivered from even the most prestigious teams of almost any industry or product without support from product managers, operations people, technology, finance & accounting, legal, etc.
I think any of the front office role in the areas you listed are plenty prestigious. There really isn’t a hierarchy, people don’t really look down on anyone. For example, a sales trader’s clients can be a hedge fund mgr, a mutual fund mgr and/or, a family office. PE, HF and MF need wealth mgmt to distribute their funds.
According to OP, seems sell side feels the same about the buy side. The reality is that everyone could think they are better where they are currently at. There is no one hierarchy, it’s different for different people.