NuclearPhynance Archive

have been doing M&A for 4 years, now a new associate in the M&A team. sick of it, always wanted to be a trader, fell into M&A accidentally. is it possible to become a trader now (buyside, no interest in sellside).

"fell into it accidentally"? Start to be honest and we can talk. You "always" wanted to be a trader, so I take it from your comment that you knew about your aspirations before you "accidentally" joined an M&A team, right? Then why did you take the M&A job? Most likely for the money and prestige, correct? Then please tell so straightforwardly rather than saying you "accidentally" fell into the M&A category. I am saying that because you put to shame the whole M&A industry, saying people "fall accidentally" into this category. Its, as you probably know, quite hard to get into Sales and Trading and M&A positions. Nobody ends up there "accidentally". You could have said no, in case you rotated and were suggested to join the M&A team. I did so, when I was rotating as associate fresh out of grad school, I was supposed to work at a cash desk but wanted to be at the derivatives desks something that was promised to me upon signing the contract. I quit after three weeks and joined an exotic rates trading desk of another ibank. Everyone has a choice. Just saying, if you expect people to give you honest advice then please be honest in your problem description.



And, to your question: No, I dont think its possible you become a trader now. Well of course it could happen, out of luck, or if you show incredible talent or if you chose to trade on your own. But think about it: Why would I or anyone on a trading desk hire someone with M&A experience (unless we traded merger arb or the like)? There are tons of hungry guys (and I wished more ladies) out there who demonstrate they would forgo any other job for a trading position, no matter how entry level. You on the other hand have no issue to work for 4(!) long years within M&A before you realize you want to switch, quite a long time. Not sure this speaks to your decisiveness and real aspirations. Additionally, if I were you I would not make demands and be picky in terms of where such trading position lies, whether sell or buy side. You most likely demand a higher salary than a fresh new grad, you most likely do not bring as fresh a thinking and ideas with you than someone just out of school and you have most likely little to no prior trading experience.



I am just trying to analyze this very honestly for you and I have to tell you that your chances are extremely slim. You can look around whether opportunities arise, speak to people, but above all I would get engaged on the trading side on my own if I were you. Formulate a strategy, test it systematically, get empirical evidence that it works, possibly back it up with real funding, and then you have something to talk about and bring to the table. So far, you just do not come across as a hot candidate who is eager to deal with the ins and outs of trading. Sorry for not delivering better news I just share my 2 cents here from 13 years of trading experience and running a desk and now running my own fund. But get other opinions and make up your mind. Good luck!!!

Why do you want to be a trader, and what kind of trader do you want to be?



It is a long shot, but you may find something at a merger arb or special situations fund for example. Be ready to do grunt work - you've been doing it for 4 years already anyways, but at least in a fund there is a silver lining.

Yes, you can go from doing mergers and acquisitions to being a mergers and acquisitions portfolio manager, ie Merger arb, ie risk arb.

"is it possible to become a trader now"



Yes. I've encountered a few credit PMs who used to be in investment banking.

Yes but you will need to go via the research analyst route. This is not uncommon. As others have commented your background might be useful for analyst jobs including merger arb, distressed, hy analyst at a fund, and these jobs at the would normally consider your background for the more junior posts as you have useful experience (although doing 1-2 years in m&a would have been a lot more efficient from your perspective)



To move from analyst role to pm/trading would require luck + being good at it.