Industry Chat: Investment BankingSeptember 2017

Sunshine Singer, Director of Student Advising

Melissa Nowaczyk, Senior Associate Director

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

• Wharton Matching Program

• Finance Club

• Next Steps and Resources

• 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 SINGERDIRECTOR OF STUDENT ADVISING

MELISSA NOWACZYKSENIOR ASSOCIATE DIRECTOR

Industry Overview

Industry Overview

Investment Banking

Product Groups

Industry Groups

Geographic Groups

Fixed IncomeEquities

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

Recruiting Trends in Investment Banking

• Earlier interviews = earlier prep!

• Direct group recruiting

• Technical questions earlier in process

• IB Matching Process

Global Hiring for Investment Banking

The Job Search

Two Strategies, One Search

MATUREMATURE ENTERPRISE• Navigate unstructured process

and timeline

• Be ready if an opportunity becomes available

• 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

• Manage heavy recruiting schedule in fall/winter

Tailor your strategy to the company/roleto ensure recruiting success

Tips for International Students/Global Job Seekers• Recruiting for APAC region typically starts early

• London Banking Summit

• Visa Quotas

• Language Skills

• Most banks sponsor international students

What Investment Banking Recruiters Seek…

• Quantitative

• Analytical

• Articulate

• Motivated

• Good judgment

• Manage stress well

• Good negotiation skills

• Record of achievement

• Attention to detail

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

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

Career Switching

84%

93%

73%

33%

42%

71%

53% 54%

64%

75% 75% 75%79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% 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 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

September October November December January

Work on your Resume

MBACM Resume Book 9/11(feedback)

EISs begin Oct. 23

Networking Expo: Oct. 30

EISs continue

Informational Days in NYC

(Thanksgiving Week!)

FRP apps due Dec. 2 & 3

Interview Prep Session

FRP: Jan. 8-16

Receive Offer Jan. 16 at 5p

February March April May June-Sept

Interviews

Offer Management

Interviews

Offer Management

Interviews

Offer Management

Interviews/offers

Report your offers

Intern

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 LynchBarclaysBlackArch PartnersCitiCITIC PECitigroup Global Markets Inc.Credit SuisseDeutsche BankEvercore PartnersGoldman Sachs & CompanyGreenhill & Co, Inc.Guggenheim Securities, LLCHoulihan LokeyJ.P. MorganLazard, LLC

Lincoln InternationalMacquarieMoelis & CompanyMorgan StanleyMTS Health PartnersPerella Weinberg PartnersPeter J. Solomon CompanyPJT PartnersRabobankRBC Capital MarketsThe Raine GroupUBSWells Fargo SecuritiesWilliam Blair & Company, LLC

Source of Investment Banking Internship Offers: Class of 2018 *Preliminary data as of 7/2/16

2% 1% 11%

1%1%

7%

77%

MBA Career ManagementContactOther

Personal NetworkingConnectionsReturn to Previous Employer

Wharton Alumni Contact

Wharton Job - Job Posting

Wharton Job - On CampusRecruiting

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 BankingNumber Accepted 75Number Accepted (with salary data)

73

% of Accepted 13.56%Annual Salary Range $81,000-$175,00025% Annual Salary $125,000Median Annual Salary $125,00075% Annual Salary $135,000Number 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

2016Bulge Brackets

2017BB and Boutique

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 MBACMEmployer 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

• Training the Street• Corporate Valuation• M&A Financial

Modeling

• 2Y Panel• IB Recruiting – What to

Expect: TBC• Success on the

Internship: April

WORKSHOPS

• Buddy system• Assigned 2Ys to help

guide you through process

• Sundays at Bonner’s (recurring during EIS season)

• 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

Next Steps and Resources• MBACM

• One-on-One Advising

• MBACM Student Website

• Career Workshops

• Finance Club

• “What to Expect” Date TBC

• Mock EIS, October 9th at the Rittenhouse Hotel

• CareerPath

• Complete your profile and set email preferences

• 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 Management50 McNeil Building, 3718 Locust Walk, 215-898-4383

Website: http://mbacareers.wharton.upenn.edu/studentGeneral Email Inquires: mbacareers@wharton.upenn.edu

Sunshine Singer, Director of Student Advisingsusinger@wharton.upenn.edu

Melissa Nowaczyk, Senior Associate Directormnowa@wharton.upenn.edu

Finance Club President Contact infofinanceclub@wharton.upenn.edu

Questions?

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@WhartonMBACM

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