Gecco Wrote:
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> Many JDs can be found in investment banking.
> Transaction work involves a lot of legal issues
> and contract negotiation (especially M&A - which
> is where most of the JDs can be found). I would
> think a JD / CFA combo would be very compellling
> here, especially if you have transaction
> experience from the legal side. ER will be more
> challenging. I strugggle a bit to see how a JD
> would be applicable in this field. The CFA
> obvioulsy is quite useful, but the JD does not
> provide much leverage here (unless of course your
> legal expertise is focused on a particular sector,
> which provdes some depth of knowledge).
I agree with Gecco here. I think it is most relevant in the transaction process because there are lots of legal documents to comb through at every step of the way, and the deal process itself is pretty repetitive from deal to deal. A fair number of the transaction and origination partners here have JD’s.
I also agree with Gecco in that in other cases, the JD/finance connection seems more applicable than it really is. I think it does help with respect to the healthcare space, particularly in devices and pharma because of all the IP litigation. However, most of the time, sell-side analysts have lawyers with whom they consult, and these lawyers have years of experience in a particular field that they live and breathe every day. I’m sure having a legal background can help you get through the documents much more easily, but there’s only so much time during the day and usually it makes more sense just to source the legal analysis to a legal team, who is not only more dedicated to that stuff but also has experience that is much more relevant and current. Your job in equity research will be much more on the finance side than the legal side, even if you think you have a legal background that can be “leveraged.”
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