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Investment Banking Discussion Thread - Page 10

post #136 of 622
Quote:
Originally Posted by Khayembii Communique View Post

If you worked in both how did you transition between the two? What was your role in PWM?
Why do people prefer IBD over PWM? More room for advancement? Better pay? More interesting?
Just wondering because I might have a chance to interview for a position in Asset Management as my first position in the field from a career change from engineering, and wondering if I should take it or pursue IBD positions instead. This is a great opportunity though that I'm worried I won't be able to find in IBD.

People prefer IBD at a junior level because:
- training is thorough
- gain transferable finance/accounting skills
- clear career progression
- work with people your own age
- pay is higher (not measurably but it is higher)
- more exit opportunities

A PWM analyst prepares material on mostly asset backed credit, trusts, mortgages or investment advisory to high net worth people. There is not an established path (as there is in IBD) from analyst to senior banker.

At the associate/VP level, you are expected to begin sourcing your own clients and if you don't have any by a certain point (one to two years) you are let go. In some cases, senior bankers transfer some of their smaller clients to junior bankers if the client agrees.

Quote:
Originally Posted by aspasp View Post

pwm is back office, ibd is more prestigious, more exit opportunities, better pay and is going to build a stronger skill set. pwm is like being a salesman

I agree about what you say about IBD but PWM is not anywhere near back office at a bulge bracket. Private bankers who have a solid client base are known for having some of the best jobs on the street (high pay and extremely low hours).
post #137 of 622
Quote:
Originally Posted by Khayembii Communique View Post

How is PWM back office, especially if it's "like being a salesman"??? How can you relegate all of PWM/Asset management to the back office?

http://en.wikipedia.org/wiki/Investment_banking#Back_office

 

It is by definition

post #138 of 622
Quote:
Originally Posted by aspasp View Post

http://en.wikipedia.org/wiki/Investment_banking#Back_office

It is by definition

You are confusing the "Other Businesses" section as being a subset of the "Back Office" section.
post #139 of 622
Quote:
Originally Posted by aspasp View Post

http://en.wikipedia.org/wiki/Investment_banking#Back_office

It is by definition

Back office is generally anything that's non revenue generating. PWM still generates revenue and is front office.
post #140 of 622
Dude it's back office if you aren't working 100 work weeks. Okay?
post #141 of 622
Quote:
Originally Posted by Khayembii Communique View Post

If you worked in both how did you transition between the two? What was your role in PWM?
Why do people prefer IBD over PWM? More room for advancement? Better pay? More interesting?
Just wondering because I might have a chance to interview for a position in Asset Management as my first position in the field from a career change from engineering, and wondering if I should take it or pursue IBD positions instead. This is a great opportunity though that I'm worried I won't be able to find in IBD.

Don't let the AM/PWM people know that you'd be looking to use that as a stepping stone to IB.

They see that a lot and hate it.
post #142 of 622
Quote:
Don't let the AM/PWM people know that you'd be looking to use that as a stepping stone to IB.

They see that a lot and hate it.

lol I wouldn't. I'll take whatever I can get and be 100% committed to it, and worry about getting the dream job after I'm in the field for a bit.

I picked up some books on valuation because I'd like to do some more independent study in my free time. I don't think the CFA is worth all of the time involved for my position, though. I'll probably do some courses like IBI or BIWS.

Anyone have any good book recs? What websites do you follow besides WSO and M&I?

Sort of off topic but what is a viable career path into hedge fund management? Would it be better to start in IBD and move into PE or something else like asset management? Just trying to learn more about the different careers and pathways to them.
post #143 of 622
Quote:
Originally Posted by Khayembii Communique View Post

lol I wouldn't. I'll take whatever I can get and be 100% committed to it, and worry about getting the dream job after I'm in the field for a bit.
I picked up some books on valuation because I'd like to do some more independent study in my free time. I don't think the CFA is worth all of the time involved for my position, though. I'll probably do some courses like IBI or BIWS.
Anyone have any good book recs? What websites do you follow besides WSO and M&I?
Sort of off topic but what is a viable career path into hedge fund management? Would it be better to start in IBD and move into PE or something else like asset management? Just trying to learn more about the different careers and pathways to them.

Investment Banking by Rosenbaum and Pearl is a good overview on valuation, M&A, and also comes with access to completed models. PM me if you're interested in seeing the models.
post #144 of 622
I believe that's one of the three that I bought. I have currently:

Investment Banking Explained: An Insider's Guide to the Industry by Michel Fleuriet
Investment Banking: Valuation, Leveraged Buyouts, and M&A by Joshua Rosenbaum
Investment Valuation by Aswath Damodaran

The book has info on how to access the models on the Wiley site but if I have problems with that I'll PM you.

Any other suggestions or is this type of stuff just a waste of time?
post #145 of 622
Quote:
Originally Posted by Khayembii Communique View Post

I believe that's one of the three that I bought. I have currently:
Investment Banking Explained: An Insider's Guide to the Industry by Michel Fleuriet
Investment Banking: Valuation, Leveraged Buyouts, and M&A by Joshua Rosenbaum
Investment Valuation by Aswath Damodaran
The book has info on how to access the models on the Wiley site but if I have problems with that I'll PM you.
Any other suggestions or is this type of stuff just a waste of time?

It depends on what type of valuation you'll be doing and on what scale. The the Rosenbaum and Pearl text would be helpful to anyone, in a broad sense, but many smaller firms that are not valuing large, publicly traded companies may have little use for the actual framework used to build a DCF. A lot of smaller firms use proprietary models tailored to their needs. Having said that, I still think it's a good read for anyone in valuation.
post #146 of 622
I'm lucky enough to have a chance to speak with someone this week who is a CFO and manager at a long/short sector hedge fund managing about $200m. I have enough knowledge to speak of this in general terms but know nothing of the sector in question; I also only have access to their long positions through their SEC filings (13F and 13G) and other than this information am having trouble finding more info on this hedge fund in terms of very general strategic discussion. Their website is entirely behind a log in.

This contact was entirely through networking, and I'm sort of uneasy about going into this conversation with such little information. I also don't know what the tone is going to be: is he going to be quizzing me on my knowledge or answering questions I have for him? I really don't know.

Can anyone recommend where aside from SEC filings and Google/LinkedIn to look for more strategic information on firms? What about learning more in depth about long/short equity generally?

This is a really big deal and a miracle that I'm even going to be having this conversation with this guy so I want to be as prepared as possible going into it.

Sorry, I've sort of hijacked this thread.
post #147 of 622
Just call their general line/sales desk and say you're an interested investor and would like more information e.g. how can they help setup a temporary log-in.

Or you just be frank and say you would appreciate if you can get a log-in. They can give you that depending on who answers the phone.
post #148 of 622
^ don't do this
post #149 of 622
I have to email this guy to set up the phone meeting so I might as well just ask him. Thanks for the tip.
post #150 of 622
Quote:
Originally Posted by Khayembii Communique View Post

Can anyone recommend where aside from SEC filings and Google/LinkedIn to look for more strategic information on firms? What about learning more in depth about long/short equity generally?

When I was an intern my boss gave me The Handbook of Alternative Assets. If I remember correctly it has fairly good sections that discuss individual HF strategies. Useless to me now, it's being used to raise the height of one of my monitors.

edit: it has 2 pages on long/short, specifically
Edited by suited - 9/25/12 at 6:57am
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