Industry Chat: Investment Banking

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Transcript of Industry Chat: Investment Banking

PowerPoint PresentationMelissa Nowaczyk, Senior Associate Director
MBA Career Management
• The Job Search
How can we help?
If we don’t know you, we can’t help you.
MBA Career Management Investment Banking Team
Career Advice
Corporate Relationships
Programming
Corporate Relationships
• Co-manage employer relationships with Career Advisor
• Manage recruiting events
• 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 SENIOR ASSOCIATE DIRECTOR
Industry Overview
Industry Overview
Investment Banking
Product Groups
Industry Groups
Geographic Groups
Fixed IncomeEquities
• 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
Recruiting Trends in Investment Banking
• Earlier interviews = earlier prep!
• IB Matching Process
The Job Search
and timeline
• Prepare for multi-format networking opportunities
• Proactively build & leverage network, pitch solutions and employment opportunities
• Travel to companies and recruiters
• Sustain recruiting efforts throughout the year
• Follow structured process and timeline
• Be ready for when an opportunity is available
• Prepare for and attend “formal” recruiting events
• Market your candidacy and differentiators
• Conduct on-campus interviews
Tailor your strategy to the company/role to ensure recruiting success
Tips for International Students/Global Job Seekers • Recruiting for APAC region typically starts early
• London Banking Summit
• Quantitative
• Analytical
• Articulate
• Motivated
• Prior finance experience a bonus
• Ok with career switchers, as long as excelled in prior position
• Impressive GPA and test scores
• Leadership positions
• Hard working
• Tied to desk in S&T, early start, entertaining clients
• Client comes first
• Long-term wealth creation
% FT Accepted Offers – Reported “Industry Change”
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
• Who are the key recruiting contacts? (Wharton team, group, recruiter etc.)
• Know how the firms perceive themselves
• Strengths, recent significant transactions /strategic new hires
• How do they view their own culture?
• Perfect your story
• 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
September October November December January
Work on your Resume
EISs begin Oct. 23
Networking Expo: Oct. 30
Interview Prep Session
FRP: Jan. 8-16
February March April May June-Sept
Interviews
Investment Banking Recruiting: Timing of Key Events
Companies That Made Banking Internship Offers in 2017 *Data as of 9/1/17
Bank of America Merrill Lynch Barclays BlackArch Partners Citi CITIC PE Citigroup Global Markets Inc. Credit Suisse Deutsche Bank Evercore Partners Goldman Sachs & Company Greenhill & Co, Inc. Guggenheim Securities, LLC Houlihan Lokey J.P. Morgan Lazard, LLC
Lincoln International Macquarie Moelis & Company Morgan Stanley MTS Health Partners Perella Weinberg Partners Peter J. Solomon Company PJT Partners Rabobank RBC Capital Markets The Raine Group UBS Wells Fargo Securities William Blair & Company, LLC
Source of Investment Banking Internship Offers: Class of 2018 *Preliminary data as of 7/2/16
2% 1% 11%
Personal Networking Connections Return to Previous Employer
Wharton Alumni Contact
Wharton Job - On Campus Recruiting
Timing of Investment Banking Internship Offers: Class of 2018 *Preliminary data as of 7/31/17
0
10
20
30
40
50
60
70
80
Timing of Investment Banking Full-Time Offers: Class of 2017 *Preliminary data as of 7/31/17
0
10
20
30
40
50
60
70
FT Salary Breakdown: Class of 2017 *Preliminary data as of 7/31/17
Investment Banking Number Accepted 75 Number Accepted (with salary data)
73
% of Accepted 13.56% Annual Salary Range $81,000-$175,000 25% Annual Salary $125,000 Median Annual Salary $125,000 75% Annual Salary $135,000 Number with Sign-On Bonus
68
Median Sign-On Bonus $50,000
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
• Results:
• Next Year: • Later offer date to allow for all final rounds to be completed in a timely manner • Maximum of 3 offers across bulge/boutique firms will remain in place
2016 Bulge Brackets
YOY Percent Change
Total Students Recruiting for Banking 175 196 12.0% Total Students with 1st Round IB NYC Interview 98 136 38.8%
Total Students with 2nd Round IB NYC Interview 75 73 -2.7%
Total Unique Offers Received 57 57 -- Total Students Receiving Three Offers 18 22 22.2% Total Additional Offers due to Matching Program 7 7 --
Total Offers from Matching Program* 118 110 -6.8%
*Accounts for students who may have received multiple offers
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.
Wharton Finance Club
• London IB trek: November
Modeling
Expect: TBC • Success on the
Internship: April
guide you through process
• Meet 2Y board members over a drink (including water!)
• Office hours (recurring after Thanksgiving break)
• Chat with a 2Y board member at 2401 throughout the recruiting process
• 2Y contact list by bank • List of who interested
at which bank in which city
• “Fly on the wall” mocks • Watch a simulated
interview put on by 2Ys at JMHH
ONGOING 2Y SUPPORT
Club Fast Facts:
• 250 Members 2016-2017 • Focus on Investment Banking and Private Wealth
Management recruiting
• One-on-One Advising
• Mock EIS, October 9th at the Rittenhouse Hotel
• CareerPath
• 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: [email protected]
Sunshine Singer, Director of Student Advising [email protected]
Melissa Nowaczyk, Senior Associate Director [email protected]
Finance Club President Contact info [email protected]
Industry Overview
Industry Overview
The Job Search
What Investment Banking Recruiters Seek…
Is Investment Banking for You?
Career Switching
Slide Number 18
Companies That Made Banking Internship Offers in 2017*Data as of 9/1/17
Source of Investment Banking Internship Offers: Class of 2018 *Preliminary data as of 7/2/16
Timing of Investment Banking Internship Offers: Class of 2018*Preliminary data as of 7/31/17
Timing of Investment Banking Full-Time Offers: Class of 2017*Preliminary data as of 7/31/17
FT Salary Breakdown: Class of 2017*Preliminary data as of 7/31/17
Investment Banking at Wharton
Wharton Matching Program: What
Wharton Matching Program: Why
Wharton Matching Program 2.0
Wharton Finance Club