WLB, pay and opportunities at International Finance Corporation (IFC)
Really curious to learn what pay, work life balance, culture and just work in general are like at a development finance institution such as World Bank's International Finance Corporation. I am surprised to see several top MBAs and ex-McKinseys/ex-bankers working for IFC, so I feel like the pay has to be pretty decent since you wouldn't otherwise see that many people make this kind of job switch? Am also genuinely super interested in the type of work a development finance institution does, so any insight would be greatly appreciated.
Also interested in hearing about e.g., EBRD, EIB, New Development Bank (BRICS' DFI) etc., and whether there are any major differences between the different DFIs out there. If anyone with any experience from/insight on these firms could comment that would be super helpful.
Pay is between public service and finance type of roles and in DC it is significantly better than USG salaries and thus a cushy gig there.
Comp gets maximized by moving around the network on expat assignments and maximizing fringe benefits.
WLB is very good especially at the junior level when compared to higher intensity gigs that most join from at that level. Extensive (business class) international travel is a pro and a con depending on what you're into.
Fairly strict MBA requirements (with some exception) but also strong placement into those programs is relevant for the junior recruitment there (i.e. stepping stone between IB and MBA).
You get great access to EM opportunities but have to deal with all sort of politics - some people can make the most of it and thrive in the organization and others burn out/hate it.
All DFIs deal with a mix of the above although IFC probably has the better balance of pay, interesting deals/work, govt interference on day to day work. Some of the other entities will really feel like working for the government whereas the process at IFC is relatively commercial (by DFI standards).
These are great insights, thanks a lot!!
Do you know how the recruiting process works? Is a lot of networking required or should you just apply through the website, and does recruiting differ significantly between regions/countries? Also do you know if they have any preference for people who have IB experience over people with consulting experience or vice versa?
Really great insights. Any info on how the job progresses/what it looks like as you get more senior?
I think it depends a lot on whether you're on the ground or in DC. If you're committed to EM and work in the respective geographies that IFC operates in, I think the gap between working at the IFC and in a normal finance role isn't all that wide. Plenty of senior people move into banking, SWFs, pensions, strategics etc. since the job gets you good exposure not to just deal execution but also senior leadership at the relevant counter parties (arguably, better than the equivalent banking or buy-side roles). You get invited to speak at every industry panel; governments will drag you into high profile initiatives with their SWFs; institutional players consider IFC as a collaborator rather than a competitor so if you're savvy, you can harness that as your personal capital and convert it into something lucrative post-IFC.
In the US, it's harder to position the experience towards domestic opportunities but ultimately it's still full of smart people with interesting work experience so people end up in all sorts of places from what I've seen. Living in DC on an IFC salary is also a pretty good sweet spot: you make [a lot] more than a federal worker with somewhat similar hours; big-law might pay more but will be also a lot more grueling; you have a lot of job stability and strong retirement contributions so its easy to see a long-term path and never leave which is why the organization is full with lifers.
Do you think it is a good pre-MBA experience if you want to recruit for PE post MBA? I know that they do a lot of debt financing / loans but they have some equity investments
I am post-MBA working in PE in Asia, exploring DFI as a more stable career option.
Could you please comment more about these fringe benefits from living 6 months in local markets?
Also, I would be curious to hear any perspectives you might have on people who have worked with DFIs for 5+ years. Are they extremely frustrated with any aspects about life at a DFI?
I can't give you specific details other than to highlight that when there isn't an ability to pay out performance comp, a disproportionate amount of energy is directed towards maximizing other available benefits (travel per-diem, housing, schooling etc under expat programs). I think this is universal to most DFIs (and public sector) and in particular at places like IFC and ADB which have seemingly very elaborate benefits policies compared to the private sector.
People who typically do well at DFIs are those that stop benchmarking themselves to the private sector and embrace the organizations including their limitations. If you go to IFC (or similar DFIs) to cosplay as a PE investor, then you will likely be really frustrated even if in practice, you spend 75% of your time doing the same job. Depending on the market in Asia, I think IFC could offer very good trade-off between comp/wlb/interesting work as well as a path to continue being relevant in the market. My only other advice is to be firm on the level that you come in at as there is a wide divergence in how the place seems to map external candidates to their internal seniority matrix.
At what level? I don't think it's an easy question to provide a generalized answer to. At the junior end, they do not hire recruiters and I've known people who got in by just applying online but also a fair amount of networking (and nepotism). IB candidates definitely favored at the investment analyst (i.e. pre MBA) level but a lot more diversity at the mid and senior level and there is an army of non investment roles as well at the organization.
Easiest way to enter is to have real world experience in a private sector finance gig with a genuine (and maybe demonstrated) interest in EM.
I see, sorry for being unclear but I was thinking both for pre-MBA and post-MBA level tbh - so you pretty much answered my questions. Thanks again
Former IFC investment analyst here, from a field office (arguably the best office globally for a number of reasons - I would have HATED to work in DC having spent some time in 2121 pennsylvania avenue - but won't disclose where exactly I was). Did my MBA and now in PE.
What Teller in PE said was generally true to my experience, but adding some more colour particularly as a non-US citizen working for IFC outside of the US.
Pay is HIGHLY variable and many field offices get low pay which is often below market for that particular region. As mentioned, the way to maximize on pay is to take on as many international assignments (usually for 6 months at least at a time, with extensions) as possible, as you get a lot of benefits / extra pay etc. I heard DC folks complaining about pay pretty much constantly, but doesn't everyone in this industry? You also have to negotiate a strong package on entry as yearly pay rises are awful (think 2%, 3.5% for top performers lol). One thing I will forever be indebted to though is the pension payout - after your analyst stint you get a big payout from your pension accrual (if you stay less than 5 years) in a lump sum, and that really helps people afford b-school.
WLB is also highly variable - yes, for most its good, but the juniors in my office got absolutely crushed. The team was high calibre and most seniors came from HSW+M&A backgrounds and honestly at times it was banking 2.0, which was really not what I was expecting. Add to the fact that the "bonus" is never more than 1 month salary at most, it starts to get pretty frustrating. That said, tons of juniors globally (looking at you, DC "global" analysts) did absolutely nothing for their 3 years and just sat around doing internal reporting BS. PTO policies are fantastic though, if you can take it (it's highly encouraged).
Progression from analyst to associate is now almost impossible without an MBA - prior to a few years ago CFA and other masters were acceptable, now it's much more strict (at least in my former industry group).
MBA placement is strong-ish, but not as strong as you would expect. In my class at IFC globally everyone got into M7 or LBS/INSEAD, but only female candidates got H (no S). W is pretty likely from IFC depending on your pre-IFC job (bankers/MBB preferred). Although HSW is still relatively tough, you are pretty much guaranteed a spot at the other M7s and will walk into LBS/INSEAD. If you have a unique profile, come from an EM, etc. etc., then you have a very strong chance of HSW - know a few people who received full rides at either or (and some cases both) H and S, but they had extremely unique profiles.
Will IFC set you up post-MBA for good PE roles? It depends heavily on pre-IFC experience, but generally what I found was that although the name was known, it was not respected in the private sector. IFC has a reputation as a DFI (which is not deserved IMO) of being slow, not commercial, bureaucratic etc. Your experience is quite heavily discounted, and honestly if private sector investing is your goal it's not a great stepping stone - avoid IFC. I disagree that its easy to move to SWFs, PE etc. - I tried for a while prior to my MBA but was forced to fork out for b-school to eventually get the job. People who do move successfully are usually either very senior (see Jim Kim former CEO who is now a partner at GIP), or very junior (know some people who moved to SWF's/LMM/MM funds shortly after commencing the post-MBA young professionals program). For reference, the former COO/CIO left recently to go be a garden variety MD at Citi, which is a worrying indication of the reputation of IFC. I personally have found the network to be useful outside of IFC, and have got interviews / internships with IFC alums. There's just not that many in the best roles!
Will you get a lot of kudos and soft power / capital? Yes for sure. Everyone picks up the phone to the WBG/IFC. You will almost certainly work on very interesting transactions that you wouldn't in a run of the mill PE fund, and meeting high level government officials and having their ear was a thrill (as was the UNLP quasi-diplomatic passport lol). Although one big worry even during my time there was IFC's growing irrelevance. Commercial bankers are financing the same deals, global PE funds are now in the same markets etc., so the organisation really needs to ramp up to stay relevant in today's world. That said, I do think it's a great time to join though in this market downturn - it's by nature counter cyclical and there will be a LOT of need for IFC funding in EMs over the next few years.
The YP program post-MBA is pretty good, it manages to attract a lot of well polished/credentialed starry-eyed do-gooders who, like previously mentioned, either love it or hate it after a couple of years. You can really game the system though as a YP and earn up to $300k tax free in some cases by doing tons of development assignments etc.
Despite what I say above, I honestly loved my time at IFC though. I learned a fair amount, the firm invests TONS in training you, my particular team was really amazing and although I did not get paid particularly well, it was enough. I would absolutely not have stayed long-term as I think the best time to join is as a principal (very senior) to maximise on benefits and avoid the tedium of the internal reporting work (of which there is a LOT), and plus I was terrified of being pigeonholed as a DFI person forever. There are certainly worse places to be, and if you are passionate about EM, then there is arguably no better place to be for at least part of your career.
Feel free to shout if any more questions.
This is really good feedback and consistent with a lot of what I've heard/seen from those that went through the organization.
I would just add - respectfully - that IFC seems to be plagued by having really smart and ambitious people setting themselves up for disappointment with expectations and benchmarking.The MBA placement is a perfect example - the commentary is that the median analyst will only land at Wharton rather than Harvard and unlikely to end up at Stanford (this is similar to what I've heard a decade ago too when my peers were going through those programs). The same I think can be said about mid six-figure salaries with tons of job security at the mid/senior career level while working for an institution with a dot org email address. Most would view those outcomes as very favorable but if you're benchmarking outcomes to a HBS/megafund path (and many at IFC do...) then you're bound to be disappointed.
I should also clarify, since this is WSO, that if the ultimate goal is to maximize a career in PE, then IFC and other DFIs will not be the most direct or quickest path to that destination.
Absolutely agree with everything you say here. Also I would add that the best people at IFC - those who had unmet expectations as you say and strong backgrounds - are leaving the organisation in droves, for the best roles they can get. My old team in particular I hear has completely hollowed out.
the other one ridiculous policy is seniors on a management track and outside of DC having to rotate office every 4 years (it used to be 7, and people could game that). Insanely impractical when you have a family.
What's the timeline for getting into the YP program post-MBA - does it happen during the program or 1-2 years after? I would imagine it's hard for MBA students to prioritize it over something like IB given how early IB recruiting is?
It happens early in second year. There are internships at IFC available for first years but they bizarrely have no relation to the actual YP program so are useless.
I should add that they have a ridiculous policy of not sponsoring their analysts through MBA, and not even guaranteeing a spot on return. Many analysts do want to stay at IFC for many reasons, but they are forced to go do an MBA on their own dime and then reapply with everyone else for the YP. Insane.
what's pay for a post-MBA associate? if you're able to share.
I believe the YP pays $150k tax free in DC base (bonus would be 8-10% max). As I said I know many who got double this by doing assignments in other countries.
What would you say the equivalent of "Associate Investment Officer" and "Investment Officer" titles are in IB/PE?
Hard to say because of how long the promotion cycle can be - minimum 3-4 years at AIO and indefinite for IO. Roughly equivalent would be Associate Investment Officer is similar to a senior IB associate/junio VP and up, and IO can be anywhere from VP - senior Director lol (can take 8 years to get to Senior IO, honestly, then another few years to principal). Principal at IFC is MD level at a bank.
Thanks for the detailed post! Do you mind commenting on how your experience at IFC helped you get where you are now (MBA, PE Associate)? Was it a supporting factor or did you have to fight against potentially negative perceptions against IFC? Ex post, what lessons do you draw from your analyst experience? More specifically, how do you view an analyst role (in the field) at IFC as a pathway to EM DCM?
the career path is usually the opposite of what you describe, people normally move from DCM to IFC/DFIs
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