Industry Chat: Investment BankingSeptember 2016

Sunshine Singer, Director of Student Advising

Melissa Nowaczyk, Recruiting Relationship Manager

MBA Career Management

Agenda

• Working with MBACM

• Industry Overview

• Functions and Roles

• Recent Trends and Global Hiring

• The Job Search

• Recruiting for Investment Banking

• Offer Statistics

• Investment Banking at Wharton

• Finance Club

• Wharton Matching Program

• Q & A

How can we help?

If we don’t know you,

we can’t help you.

MBA Career Management Investment Banking Team

Career Advice

• Self-assessment & decision

making

• Networking

• Industry Insight

• Resumes, Cover Letter &

Interview Prep

Corporate Relationships

• Develop employer outreach

strategy with RRM

Programming

• Develop programs for students

interested in investment banking

careers

Corporate Relationships

• Strategize best recruiting

approach for variety of employers

• Co-manage employer

relationships with Career Advisor

• Manage recruiting events

Student Support

• Assist students with logistics of

on-campus interview process, job

board postings, etc.

Collaborate with professional clubs and research centers, including the Finance Club.

SUNSHINE SINGER

DIRECTOR OF STUDENT ADVISING

MELISSA NOWACZYK

RECRUITING RELATIONSHIP

MANAGER

Industry Overview

Industry Overview

Investment Banking

Product Groups

Industry Groups

Geographic Groups

Fixed Income

Equities

Trading

Sales

Research

Private Equity

Investments

Private Client

Services

Investment Bank

Capital Markets

Equity Capital Markets

Debt Capital Markets

Functions in Investment Banking

Investment

Banking

Capital Markets

Sales & Trading

• Provide strategic, financial and valuation advisory services

• Raise capital through the issuance of securities

• Advise companies in merger & acquisition and restructuring transactions

• Offer specialized products and services that satisfy the needs of corporate and government clients

• Raise capital for a company through an initial public offering, a follow-on offering, a convertible offering or a debt offering

• Monitor global rate and credit market dynamics and how they affect clients’ liability portfolios and issuance decisions

• Manage direct dialogue with Investment Banking coverage, debt and equity partners

• Provide clients for traders

• Intermediary between trader and client

• Provide liquidity to the market

• Commit the firm’s capital and/or buy and sell securities

• Manage firm’s risk and make markets by setting process

Associate Roles in Investment Banking

Investment

Banking

Capital Markets

Sales & Trading

• Perform financial modeling / analysis

• Responsible for crafting marketing materials to win a mandate

• Conduct due diligence and manage deals

• Work with capital markets to raise capital through investors and sales force

• Advise clients on marketing, timing and pricing of debt or equity issuance

• Coordinate with syndicate, sales and trading to price and sell stocks or bonds

• Know all priority clients and key financing decision makers

• Develop marketing materials for client’s management

• Maintain relationships with institutional investors

• Provide comprehensive client coverage (market updates, pricing, executing client orders, marketing ideas)

• Assist senior traders in managing risk, liquidity and exposure

• Track supply and demand, evaluate market development

• Responsible for matching trades

• Settling trades with other dealers

Recent Trends in Investment Banking

• Junior banker lifestyle initiatives

• Technical questions earlier in process

• IB Matching Process

Global Hiring for Investment Banking

The Job Search

Mature & Enterprise Recruiting

• Established employer relationships

• Annual, steady demand

• Extend multiple offers/yield multiple

students

• Understand MBA recruiting value

prop

MATURE

• Developing employer relationships

• Inconsistent demand year-to-year

• Just-in-time hiring

• Less clear on MBA recruiting value

prop

ENTERPRISE

Consulting, Banking, Sales & Trading, CPG Private Equity, Venture Capital, Media, Retail

Social Impact, Start-Ups

Healthcare, Technology, Energy, Hedge Funds, Real Estate

Recruiting

Strategy/Timing

Wharton

Strategy

Student

Strategy

• Employer Info Sessions, Employer

Networking Night, Sponsorships, On

Campus Recruiting

• Heavy Fall/Winter Recruiting

• Postings, resume book, networking

• Throughout year; late in year/summer offers

Wharton

Strategy

• Differentiate vs. other schools

• Build market share

• Find new ways for company engagement

• Develop compelling Wharton value prop

• Expand/maintain vibrant Wharton network

• Manage outreach with clubs/partners

• Prepare for EIS, Interviews, how to

decide between firms, etc• Networking-intensive

• Alumni-intensive

Student

Strategy

Two Strategies; One Search

Mature

• Employer Information

Sessions

• Networking Expo

• Coffee Chats

• On-Campus Interviews

Enterprise

• Networking Connections

• Job Postings

• Wharton Community/Alumni

• Informational Meetings

• NYC and SF Expos

• Digital Brand

Conduct a well-prioritized and balanced search

to ensure recruiting success

Tips for International Students/Global Job Seekers

• London Banking Summit

• Visa Quotas

• Language Skills

• Most banks sponsor international students

Consulting15%

Real Estate3%

Investment Banking/Brokerage

27%

Diversified Financial Services

12%

Media & Entertainment3%

Social Impact10%

Private Equity5%

Investment Management8%

Technology6%

Other11%

Pre-MBA Experience: Investment Banking

What Investment Banking Recruiters Seek…

• Quantitative

• Analytical

• Articulate

• Motivated

• Good judgment

• Manage stress well

• Good negotiation skills

• Record of achievement

SKILLS

• 3 to 5 years of work

experience

• Prior finance

experience a bonus

• Ok with career

switchers, as long as

excelled in prior position

• Impressive GPA and

test scores

• Leadership positions

EXPERIENCE

• Personable

• Communication skills

• Team player

• Leader

• Humble

• Confident without being

arrogant

• Hungry

SOFT SKILLS

Career Switching

94% 94%

85%

63%

46%

71%

48%

65%60%

86%

63%

80%

87%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% Intern Accepted Offers – Reported “Industry Change”

Is Investment Banking for You?

• Hard working

• Multi-tasking

• Detail-oriented

• Quantitative

• Analytical

• Strong communication

skills

• Persuasive

• Thrive under pressure

SKILLS

• Flat organization

• Take responsibility early

• Passion for winning

• Team-oriented

• Strive for excellence

• Service-oriented

• Client-driven

CULTURE

• Fast-paced

• Long hours in IB,

weekend work

• Tied to desk in S&T,

early start, entertaining

clients

• Client comes first

• Long-term wealth

creation

WORK/LIFE

Tips for Recruiting in Investment Banking

• Know how the firms are internally structured

• Industry vs. product groups

• How they place summer associates and new hires

• Know how the firms perceive themselves

• Strengths, recent significant transactions /strategic new hires

• How do they view their own culture?

• Perfect your story

• Why are you at Wharton?

• Why do you want to work in Investment Banking?

• Who else are you interviewing with, why?

• Why did you choose to work at your previous employers, why did you leave?

• Try to understand firm culture and personal fit

• Meet as many people as you can

Investment Banking Recruiting Timeline

Self-Assessment

Research & Strategy

Networking

Resume Development

Cover Letter Development

Interviewing

Offer Management

Transition to Work

August – November (explore your interests, motivators and skills)

August – January (research and identify target industries, functions and geographies. Create a job search plan.)

October – January (engage in conversations to build relationships, gather information and identify potential opportunities)

August – October (create a document that reflects your passion, experience and skill set)

November – February (create a document that complements your resume and reflects your interest and qualifications for specific jobs)

January – March (prepare for and engage in conversations about your interest and qualifications for specific jobs)

February – (evaluate job offer(s) and manage employer relationships)

May – June (prepare for internship)

MBA Career Management

Companies That Made Banking Internship Offers in 2016*Preliminary Data as of 7/1/16

Bank of America Merrill Lynch

Barclays

Citi

CITIC PE

Citigroup Global Markets Inc.

Credit Suisse

Deutsche Bank

European Stability Mechanism

Evercore Partners

Goldman Sachs & Company

Greenhill & Co, Inc.

Guggenheim Securities, LLC

Houlihan Lokey

J.P. Morgan

J.P. Morgan Asia Pacific

Jane Street

Lazard, LLC

Miller Buckfire & Co.

Millstein & Co.

Morgan Stanley

Perella Weinberg Partners

Peter J. Solomon Company

Piper Jaffray & Co.

PJT Partners

TAP Advisors

UBS

Wells Fargo Securities

XP Securities

Source of Investment Banking Internship Offers: Class of 2017 *Preliminary data as of 7/2/16

78%

9%

2%

6%

2%1%

2%

Wharton Job - On Campus Recruiting

Wharton Job - Job Posting

Other

Personal Networking Connections

MBA Career Management Contact

Trek Networking

Wharton Alumni Contact

Timing of Investment Banking Internship Offers: Class of 2017*Preliminary data as of 7/6/16

0

10

20

30

40

50

60

70

80

Timing of Investment Banking Full-Time Offers: Class of 2016*Preliminary data as of 7/6/16

0

10

20

30

40

50

60

70

80

FT Salary Breakdown: Class of 2016*Preliminary Data as of 7/1/16

Investment Banking

Number Accepted 89

Number Accepted (with salary

data)

88

% of Accepted 16.09%

Annual Salary Range $27,600-$175,000

25% Annual Salary $125,000

Median Annual Salary $125,000

75% Annual Salary $125,000

Number with Sign-On

Bonus

83

Median Sign-On Bonus $50,000

Companies That Sponsored Students in 2016 – Intern*Preliminary Data as of 7/1/16

Investment Banks

Bank of America Merrill Lynch

Barclays

Citigroup Global Markets Inc.

Credit Suisse

Deutsche Bank

Evercore Partners

Goldman Sachs & Company

J.P. Morgan

Lazard, LLC

Miller Buckfire & Co.

Millstein & Co.

Morgan Stanley

Perella Weinberg Partners

Qatalyst Group

UBS

XP Securities

Companies That Sponsored Students in 2016 – FT*Preliminary Data as of 7/1/16

Investment Banks

Bank of America Merrill Lynch

Credit Suisse

Deutsche Bank

Evercore Partners

Goldman Sachs & Company

J.P. Morgan

Lazard, LLC

Macquarie Holdings (USA) Inc.

Morgan Stanley

Investment Banking at Wharton

Wharton Matching Program: What

A matching application developed by MBACM allowing companies

and student interviewees to rank candidates and banks. Using an

algorithm developed by Wharton faculty, these rankings are used

to match candidates and banks resulting in enhanced recruiting

and offer outcomes for both parties.

Wharton Matching Program: Why

• Bank Benefit

• A lot of time and resources are invested in recruiting Wharton MBA students.

• It can be frustrating if an offer is given to a student who is not interested in accepting and/or an individual

who delays their decision only to decline.

• Our goal is to eliminate these circumstances by recommending matches to the banks based on student

and bank preferences.

• Student Benefit

• There is a subset of students who are only considering 1-3 banks, but go on to receive multiple offers

(5+).

• As a result of banks exhausting their offers on this group, their classmates’ chances of receiving an offer

are diminished.

• Our goal is to limit the number of offers a student can receive to 3 so that more students have the

opportunity to receive offers.

Wharton Matching Program 2.0

Total Students Recruiting for Banking 175

Total Students with 1st Round Bulge Bracket Interview 98

Total Students with 2nd Round Bulge Bracket Interview 75

Total Unique Offers Received from Bulge Bracket 57

Total Students Receiving Three Bulge Bracket Offers 18

Total Additional Offers due to Matching Program 7

Total Offers from Matching Program

(accounts for students who may have received multiple)

118

“Thank you for

implementing this

system”

Can we do this at

the other

schools?

“You did an

amazing job, you

should feel very

good about this”

• Results:

• This Year:• All boutiques recruiting on campus will participate.

• Students can receive a maximum of 3 offers across bulge/boutique firms.

MBACM and the Finance Club

Finance Club MBACM

Employer Relationships

• Industry relationships and firm

knowledge

• Identify job opportunities

• Facilitate employer-student

relationships

Skill Development

• Job search skill workshops

• Resume reviews

• Mock interviews

Advising

• Self assessment tools

• Support in setting priorities, job search

planning, etc.

Career related events

• Treks

• Conferences

• Coffee chats

• Speaker Series

Skill Development

• Company educational events

• Job search skill workshops

Advising and Mentorship

• Student mentoring options

• Alumni mentorship programs

Wharton Finance Club

• Houston IB trek: November

• Bay Area/LA IB trek:

November/December

• London IB trek: November

CAREER TREKS

• Pillars of Wall Street

• Deep dive accounting

and Excel

• 3 Statement Modeling

• Training the Street

• Corporate Valuation

• M&A Financial Modeling

• 2Y Panel

• IB Recruiting – What to

Expect: Sept 15

• Success on the

Internship: April

WORKSHOPS

• Wharton Finance Conference:

October 21

CONFERENCE

Fast Facts:

• 450 Members 2015-2016

• Focus on Investment Banking and Private Wealth

Management recruiting

• 3 Annual Treks

• Houston, San Francisco/LA, London

Next Steps and Resources• MBACM

─ One-on-One Advising

─ MBACM Student Website

─ Career Workshops

• Finance Club

─ Sept 15th at noon, What to expect

─ Mock EIS, October 10th

• CareerPath

─ Complete your profile and set email preferences

─ Create saved job searches

• Wharton Community

─ Begin networking with second years and your classmates

Read emails from MBACM for important information

on upcoming events and deadlines

Contact Information

Wharton MBA Career Management

50 McNeil Building, 3718 Locust Walk, 215-898-4383

Website: http://mbacareers.wharton.upenn.edu/student

General Email Inquires: mbacareers@wharton.upenn.edu

Sunshine Singer, Career Advisor

susinger@wharton.upenn.edu

Melissa Nowaczyk, Recruiting Relationship Manager

mnowa@wharton.upenn.edu

Finance Club President Contact info

financeclub@wharton.upenn.edu

Follow MBA Career Management:

@WhartonMBACM

WhartonMBACM

Questions?