Should You Lateral? Pt. 4: Finance Associates
The BigLaw need for finance associates always seems to be high. Firms have a hard time staffing their finance departments because it is frequently an "underselected" practice when associates choose their specialization. But finance should not be overlooked. It is a broad practice that generally refers to attorneys who work with borrowers (companies) and lenders (banks) on large and complicated loan transactions. And finance is ultimately a great practice for going in-house or making partner.
In certain cases, a lateral move to a new (or different) finance practice may be necessary to achieve your long-term career goals.
Here are some reasons to consider lateralling as a finance associate:
To change your type of finance practice. The specialties within BigLaw finance practice are endless: general debt finance, leveraged finance for private equity deals, securitization, venture finance, project finance, etc. In the New York City market especially, there are many subspecialties. But not all firms have all specialties. And, for example, after a couple of years in a general debt finance practice, you may realize that you are actually more interested in working on specialized securitization. If your firm does not have this other specialty, a lateral move is very sensible.
To change the types of clients that you service. Many finance lawyers represent financial lending institutions, but not all. There are certain finance specialties like project finance or aviation finance that involve working with both lenders and borrowers within a very specific industry. Developing this kind of focus is key when you are interested in making a move in-house to a certain type of company. For example, it will be much more possible to lateral into a solar or renewable energy company if you are working in a project finance group that focuses on cleantech companies.
To increase the level of your responsibility at a faster rate. Some finance groups at the large firms are staffed in a similar way to capital markets and M&A groups: big teams working on big deals that have a lot of lawyers at different experience levels. Many associates start at firms like this where they can take time to build their skills and get trained. Other finance groups and teams are staffed more leanly with associates given the ability to run deals on their own very early on. This results in more meaningful client contact which is very helpful for internal advancement or making an in-house move.
To change the types of people with whom you work. Because finance practice is so wide and varied, it also draws a wide variety of personality types. There are attorneys who come from a finance or business background and have a deeper understanding of the business side of the work. And then there are others who came from a more traditional liberal arts background and learned the details of the practice on the job. Either way, there may be a tone or approach to the practice that does not fit with your own personality. This is a good reason to consider a move.
To relocate. Just like with other practice areas, certain types of finance practice are available in specific locations and not in others. Venture finance and project finance for cleantech companies is largest in the San Francisco Bay Area. Securitization and derivatives finance is particularly big in New York City and not many other major markets.