Industry Chat: Investment Banking - University of ... Industry Chat: Investment Banking September...

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Transcript of Industry Chat: Investment Banking - University of ... Industry Chat: Investment Banking September...

  • Industry Chat: Investment Banking September 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

  • Consulting 15%

    Real Estate 3%

    Investment Banking/Brokerage

    27%

    Diversified Financial Services

    12%

    Media & Entertainment 3%

    Social Impact 10%

    Private Equity 5%

    Investment Management 8%

    Technology 6%

    Other 11%

    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 Inves