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Investment Banking. Hedge Funds. Private Equity. Venture Capital. Value, Growth, Blend Long-only, Long/Short, Short-only Fundamental, Distressed, Macro, Event-Driven, Trading, Quant. Growth Equity Large-Cap Fund Middle Market Control Equity Secondaries Co-Investing. Control Equity

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select financial services segments

Investment Banking

Hedge Funds

Private Equity

Venture Capital

  • Value, Growth, Blend
  • Long-only, Long/Short, Short-only
  • Fundamental, Distressed, Macro, Event-Driven, Trading, Quant
  • Growth Equity
  • Large-Cap Fund
  • Middle Market
  • Control Equity
  • Secondaries
  • Co-Investing
  • Control Equity
  • Co-Investing

Select Financial Services Segments

Front Office

  • Client Pitching
  • Valuation / Modeling
  • Deal Execution
    • M&A
    • Leveraged Finance
    • Equity & Debt Solutions
  • Investment Analysis
  • Portfolio Management
  • Trading
  • Deal Origination
  • Valuation
  • Investment Analysis Modeling
  • Portfolio Management
  • Deal Origination
  • Valuation
  • Investment Analysis Modeling
  • Portfolio Management

Industry Coverage

Product Group

Capital Markets

Sales & Trading

Equity Research

Middle Office

  • Portfolio Credit Analysis
  • Pricing
  • Counterparty Risk
  • Ratings
  • P&L Reporting
  • Mark to Market
  • Cash Operations
  • Settlements
  • CFO/COO
  • Cash Management
  • Marketing
  • Legal
  • Cash Management
  • Legal Entities
  • Tax Structuring
  • Investor Reporting
  • Fund Valuation
  • Cash Management
  • Legal Entities
  • Tax Structuring
  • Fund Valuation
slide3

Investment Banks serve as intermediaries between providers and users of capital

Chinese Wall

Strategic advisory

Securities underwriting

Sales & Trading

Investment Banking

Users of capital

Providers of Capital

Research

  • Corporations
  • Governments
  • Municipalities
  • Individuals
  • Pension Funds
  • Insurance Companies
  • Asset Managers
  • Corporate Treasuries
  • Sovereign Wealth Funds

Private side

Public side

slide4

Overview of Investment Banking

Capital Markets

Advisory

  • Equity capital-raising
    • Initial public offerings (IPOs)
    • Follow-on offerings
    • Equity-linked (convertible)
  • Debt capital-raising
    • High-grade or investment grade
    • High-yield
    • Syndicated loans
    • Tax-exempt
  • Mergers & Acquisitions
    • Buyside
    • Sellside
    • Spin-offs / Splitoffs / Carve-outs
    • Hostile defense
    • Hostile takeovers / proxy fights
    • Joint Ventures
  • Financial Sponsors / Leveraged Finance
  • Restructuring
  • Ratings
slide5

What Does An Investment Banker Do?

Origination

Execution

  • Client Relationship Management
    • Ongoing dialogue on financial markets, industry developments, new products
    • Long-term relationship as advisor to Senior Management and Boards
  • Idea Generation and Problem Solving
    • Strategic Alternatives
    • Capital Raising
    • Optimizing Capital Structure
    • Risk Management, Dividend Policy
  • Assessment Of Opportunities
  • Financial Analysis
  • Communication
    • Management, Board of Directors
    • Internal Committees
  • Identify Potential Investors
  • Negotiation / Structuring Transactions
  • Due Diligence
  • Documentation
slide6

Investment Banking Groups

Capital Markets

Industry Coverage

Product

  • Equity Capital Markets
  • Debt Capital Markets
  • Tax-exempt
  • Leveraged Finance
  • Securitized Products
  • Consumer & Retail
  • Healthcare
  • Technology
  • Media & Telecom
  • Industrials
  • Natural Resources
  • Real Estate
  • M&A
  • Corporate Finance

“Markets”

“Technical”

slide7

Investment Banking Competitive Landscape

Bulge bracket

Middle Market

Boutique

Low

Capabilities

High

slide9

Overview of Investment Banking analyst programs

Two-year program with opportunity for a 3rd year

6-8 week training

Mentorship programs

Networking opportunities

Summer internship program serves as primary feeder to full-time analyst positions

slide10

Role of an Investment Banking Analyst

Be a member of a deal team, executing day-to-day activities surrounding live transactions

Perform financial analysis and modeling

Develop and prepare client presentation materials (pitches, roadshows, board materials, etc.)

Coordinate roadshows, and M&A processes

Research and due diligence

slide11

Why Investment Banking?

Benefits

Challenges

  • “Everyday is different”
  • Exposure to senior management
  • Steep learning curve
  • Work with talented and motivated people
  • Gain a strong background in financial analysis
  • Help execute exciting, landmark transactions
  • Networking
  • Exit opportunities
  • Long and unpredictable hours
  • Traveling
  • Demanding senior bankers
  • High stress/pressure environment
tools of the trade

Tools of the Trade

Banker Skill Set

Positives/Drawbacks

  • Motivated
  • Team player
  • Quantitative
  • Personable
  • Flexible
  • Articulate
  • Aggressive
  • Deal oriented
  • Willing to take initiative
  • Handle stress well
  • Professionalism
  • Responsible
  • Exposure/network
  • Magnitude/notoriety of deals
  • Responsibility
  • Skill and knowledge base development
  • Compensation
  • Long hours
  • Work-life balance
  • Stressful environment
  • Intensity
  • Focus on detail
  • Little things can mean a lot and poor execution can mask good skills
    • attention to detail
    • aesthetics
    • professionalism
    • timeliness
  • Communication is the key to good teamwork and efficiency
    • understand what expectations are (timing/deliverable), aka underpromise and overdeliver
  • Analysts generally treat their years as an investment in personal capital
    • seek out work—be an entrepreneur
    • vary the people and types of projects to work with/on
    • maximize client exposure and value add
qualities that investment banks look for in candidates

Qualities that Investment Banks Look for in Candidates

  • No one facet is more important than the rest. A well-rounded candidate who strives to encompass awide-variety of talents and interests often finds success
  • A Strong Interest in Finance
    • take courses that demonstrate your interest in finance
    • ability to explain: what is investment banking? what does an analyst do? why would you be a strong candidate?
  • Coursework or Work Experience
    • that demonstrates comfort with numbers/knowledge of financial statements
    • that shows comfort in front of people (e.g., sales position,student government)
    • any work experience that demonstrates drive
  • A Team Player
    • team-driven (job/athletic/academic) accomplishments on resume
    • the objective is to demonstrate that you work well with others
  • A Record of Success and Achievement
    • academic GPA, scholarships/honors, test scores
  • Leadership of student organizations or teams
    • a high level of athletic accomplishment
    • community service with a record of achievement
slide14

General Preparation

Network with peers and alumni

Internships

Research - Do I want to do Investment Banking? What type of firms?

Make sure your resume is clear, concise and error free

Take advantage of resources available to you (alumni, Feld Career Center, etc.)

Everything is fair game

Practice, practice, practice

slide15

The Interview

Be prepared: know as much about the bank and position as possible

Know yourself: what motivates you, your strengths and weaknesses and be able to articulate those points

Know EVERYTHING on your resume

Be honest and demonstrate enthusiasm and motivation

Read the Wall Street Journal EVERYDAY and use the Vault Guides

Practice interviewing (mock interviews, preparing answers, etc.)

Ask questions

slide16

Resources

Vault Career Guides

Breaking Into Wall Street

Wall Street Prep

Wall Street Training

DealMaven

Wall Street Training

slide18

What is Corporate Banking?

Provides Corporate Finance advisory, structured finance, and the extension of capital to corporate clients

Corporate Bankers are coverage officers who are the primary point of customer contact (aka “Relationship Managers”). Corporate bankers are responsible for:

forming trusted advisor relationships with clients

developing integrated financing strategies to satisfy complex client financing needs

providing innovative intellectual and financial capital to clients

Corporate Bankers partner with Investment Banking and product groups such as Capital Markets, Derivatives, and Cash Management/Treasury groups to provide the full spectrum of banking services to clients

slide19

Corporate Banking

  • The Corporate Banking product offering is focused on debt and other corporate finance products:

InvestmentBanking

CorporateBanking

StructuredProducts

M&A

Equity

Debt

Cash Management /

Treasury

  • Strategic Advisory
  • Divestitures
  • Acquisitions
  • IPOs
  • Follow-On Issues
  • Preferred
  • Convertibles
  • Debt Issuance
  • Acquisition Finance
  • Bilateral & Syndicated Loans
  • Derivatives
  • Commercial Paper
  • Hybrids/ Convertibles
  • Receivables Securitization
  • Asset Based Finance
  • Project Finance
  • Synthetic /Leveraged Leases
  • Commodities / FX
  • Equity Derivatives
  • Pensions
  • Cash management
  • Securities Services
  • Trade Finance
  • Investments
  • Agency & Trust
  • Corporate Cards
slide20

Corporate Banking

Coverage

Product Offering

Board of Directors

Investment

Banker

Strategic and Financial Advisory

CEO

For large multi-national corporations, corporate bankers primary contacts in a company are the CFO and Treasurer

Corporate

Banker

CFO

Capital Structure Management

Treasurer

Assistant Treasurer

Cash Management and other Treasury Products

HR

Ops

slide21

Corporate Banking

  • Role of an Analyst:
    • Prepare client presentations and marketing materials
    • Participate in customer calls and client meetings
    • Perform industry and company research to develop a view on financing transactions
    • Coordinate due diligence process
    • Navigate and participate in term sheet negotiation
    • Analyze the risks associated with a transaction and the implications on relationship returns
    • Drive dialogue with Credit Risk Management on client credit analytics and recommendations
    • Evaluate impact of products on company’s future earnings, EPS accretion, and credit ratios
    • Analysis and dissemination of industry performance and trends
slide22

Corporate Banking

  • Although skill sets are similar, the role of a corporate banking analyst slightly differs from an investment banking analyst

Low

Somewhat Low

Medium

Somewhat High

High

Financial Modeling

Credit Analysis

Valuation

Pitching/Presentation

Deal Execution

Client Interaction

Hours in the Office

Investment Banking

Corporate Banking

slide24

What is Credit Risk Management?

  • Analyzes, monitors, and mitigates credit risk for individual clients by evaluating new transactions and managing a loan portfolio
  • Participates in deal teams with primary focus on the bank’s credit exposure to the client
  • Manages credit approval process (including preparation of credit approval memos)
  • Responsible for approval decision as to whether to lend/commit
  • Works with Banking (Investment Banking and Corporate Banking) and Product partners on client strategies relating to capital structure
  • Monitors the aggregate portfolio risk for corporate clients
  • Completes hedging strategies to mitigate risk from distressed loan exposure
slide25

Credit Risk Management

  • Group Interaction

Investment Banking

  • Work together on extending financing on M&A, LBOs
  • Bridge Loans

Derivatives and other

Traded Products

Corporate Banking

  • Work together on extending credit for capital structure financings and other banking products
  • Risk required to approve any credit exposure relating to derivative positions

Credit Risk

Management

Cash Management /

Treasury Products

Loan Capital Markets

(Leveraged Finance and

High Grade)

  • Risk required to approve any credit exposure relating to cash management positions (ie. Letters of credit, overdrafts, etc.)
  • Work together on structuring financings and negotiating credit agreements

Legal

  • Work together on identifying credit risks in credit agreements
slide26

Credit Risk Management

  • Role of an Analyst:
    • Prepares transaction credit approval memos
      • Focusing on credit quality of the borrower and bank’s commitment
      • Participates in due diligence process
    • Prepare financial models projecting cash flows and ability to repay debt
    • Compose annual and quarterly credit reviews to determine risk ratings of clients
    • Complete valuations of companies (discounted cash flow analysis, comparables) to determine loan to value
    • Perform portfolio stress testing to determine potential portfolio losses
    • Complete periodic industry and sector overviews, primarily focused on industry performance
    • Design hedging strategies (CDS purchases, asset sales) to mitigate outsized risk