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Investment Banking Discussion Thread - Page 4

post #46 of 486
3/26/12 at 11:57pm
Quote:
Originally Posted by jslade View Post


Also, how is VC and PE completely unrelated? Venture capital is at its core a subset of private equity.
Based off of this logic, if you don't have prior PE experience, no PE firm wants you. How exactly do you go about getting PE experience then, if you can never get your foot in the door in the first place? 


It's good you started this thread because, in all honesty, both the questions you asked show you very unprepared for interviews.

 

A previous poster made a very good analogy that comparing VCs to PE is like comparing a dentists the brain surgeons. In the simplest terms, VC use a shotgun approach, making many, many very small bets (read: $10K - $100K per round); PE funds make very, very big bets (read: deals greater than $20 million, although underwriting criteria varies fund-to-fund).

 

Your second question is the paradox of the PE and VC worlds.  You can't get in without experience and you can't get experience without getting in.  Everyone one in the financial services world knows that . . .

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post #47 of 486
3/27/12 at 8:10am
I don't think investment banking is going anywhere, as I don't foresee any sea change in the long-term demand for capital raising and M&A services. However, the structure of the industry is certainly in flux. Increasing numbers of boutiques and new firms will crop up as senior bankers at bulge bracket banks leave for the promise of greater compensation. So, I think it will be much more diffuse space five years from now.

I've interviewed dozens of analyst candidates. The most common reason for an auto-ding: you can't say what investment banking is. Easily a third of the candidates I've met don't have an intelligible explanation for what makes investment banking different from management consulting. So, do yourself a favor and acquaint yourself with the job before interviewing. Talk to alum of your school and get a strong sense of what they do day to day. Ask them why they like investment banking. Then, when you are asked in interviews why you want to do investment banking, you'll have the right answer ready.

Your major doesn't really matter. Your school, scores, and grades do. That said, you'd better be ready to tackle technical questions. Memorizing the Vault guide is not enough (though, you'd better know the Vault guide). You have to understand the concepts enough so that you can discuss them intelligently when your interviewer pushes you beyond the basics. That doesn't mean you must know the answer to everything. I am most impressed when a candidate doesn't know the answer to a moderately difficult question but effectively explains how he'd think about it.

Personally, I don't understand why every junior banker wants to move to the buyside. But then, I've never been an analyst, so maybe that makes a difference.
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post #48 of 486
3/27/12 at 11:44pm
Quote:
Originally Posted by mafoofan View Post

I don't think investment banking is going anywhere, as I don't foresee any sea change in the long-term demand for capital raising and M&A services. However, the structure of the industry is certainly in flux. Increasing numbers of boutiques and new firms will crop up as senior bankers at bulge bracket banks leave for the promise of greater compensation. So, I think it will be much more diffuse space five years from now.
I've interviewed dozens of analyst candidates. The most common reason for an auto-ding: you can't say what investment banking is. Easily a third of the candidates I've met don't have an intelligible explanation for what makes investment banking different from management consulting. So, do yourself a favor and acquaint yourself with the job before interviewing. Talk to alum of your school and get a strong sense of what they do day to day. Ask them why they like investment banking. Then, when you are asked in interviews why you want to do investment banking, you'll have the right answer ready.
Your major doesn't really matter. Your school, scores, and grades do. That said, you'd better be ready to tackle technical questions. Memorizing the Vault guide is not enough (though, you'd better know the Vault guide). You have to understand the concepts enough so that you can discuss them intelligently when your interviewer pushes you beyond the basics. That doesn't mean you must know the answer to everything. I am most impressed when a candidate doesn't know the answer to a moderately difficult question but effectively explains how he'd think about it.
Personally, I don't understand why every junior banker wants to move to the buyside. But then, I've never been an analyst, so maybe that makes a difference.

Foo, you went JD > IB Associate? I had no idea.
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post #49 of 486
3/28/12 at 7:13am
I'm shocked how one can get an interview with a bb and not know the difference between banking and consulting... But then again kids from target schools get interviews left and right and don't know anything
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post #50 of 486
3/28/12 at 7:20am
when it comes to campus recruiting, typically there's a resume drop of sorts and recruiters pick from these based mostly off of scores and grades. And because most anybody can apply regardless of major and because IB tends to pay way more right out of college than most other professions, you'll see a lot of resumes from people who don't really know what it is.

Campus recruiting for the top consulting firms is similar.
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post #51 of 486
3/28/12 at 7:59am
Yup. For college recruiting companies MAY look at major but ultimately if you submit your resume and your GPA is within their cut off you're good for at least a phone interview.
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post #52 of 486
3/28/12 at 8:11am
Quote:
Originally Posted by Harbin View Post

I'm shocked how one can get an interview with a bb and not know the difference between banking and consulting... But then again kids from target schools get interviews left and right and don't know anything

Well, for what it's worth, i've never worked at a bulge bracket, so that could color my experience. That said, the candidates were often otherwise well-qualified on paper. It boils down to being a college kid that doesn't really know what he or she is doing and didn't properly prepare. We've all been there.
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post #53 of 486
4/12/12 at 2:14pm
How's everybody's summer plans looking? I tried using my school's OCR but that was a pretty dismal failure as I'm still a sophomore and most offers went to juniors/seniors this year. I still have hope as we're non target but strong regionally. I cold emailed ~100 boutique firms this weekend, most replies we're negative but I did get one potential interview with a local PWM firm. I'm wondering if this will be enough for junior year analyst recruiting, or should I seek out boutique IB gigs in other areas? (pretty much given up on BB's/structured internships at this point...) I'd be open to audit gigs as well as I'm acct/fin but not sure how translatable the skills are.
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post #54 of 486
4/12/12 at 3:44pm


I'd also like to add that VC is more based on investing in the talent and the idea. Whereas PE is based more on the business fundamentals and ability to take on leverage.

Quote:
Originally Posted by cropknox View Post


It's good you started this thread because, in all honesty, both the questions you asked show you very unprepared for interviews.

 

A previous poster made a very good analogy that comparing VCs to PE is like comparing a dentists the brain surgeons. In the simplest terms, VC use a shotgun approach, making many, many very small bets (read: $10K - $100K per round); PE funds make very, very big bets (read: deals greater than $20 million, although underwriting criteria varies fund-to-fund).

 

Your second question is the paradox of the PE and VC worlds.  You can't get in without experience and you can't get experience without getting in.  Everyone one in the financial services world knows that . . .



 

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post #55 of 486
4/12/12 at 8:03pm
There is typically a difference in personality needed as well.

PE is very often zero-sum; VC is more plus-sum. So VC partners tend to be friendlier. Perhaps they can afford to be, but they also have to be, since you never know whom you'll be asking for help down the road.
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post #56 of 486
4/14/12 at 1:57pm
anyone know of any boutique ib in texas that want an intern for the summer? my bro is looking for one without any luck.
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post #57 of 486
4/16/12 at 2:32pm

He is as late in the game for this summer's intern cycle as possible.

http://www.wallstreetoasis.com/jobs/commodities-broker-summer-intern-houston

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post #58 of 486
4/16/12 at 2:55pm
Quote:
Originally Posted by facebookdigg123 View Post

anyone know of any boutique ib in texas that want an intern for the summer? my bro is looking for one without any luck.

Shouldn't he broaden his geographical scope?
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post #59 of 486
4/30/12 at 10:11am

 

Quote:
Originally Posted by mafoofan View Post


Shouldn't he broaden his geographical scope?

 

This…I applied to boutiques in LA/SF even though I'm based in NYC. As an update…I followed up on some leads and now I have 2 internships lined up for this summer, one at a tech startup and the other at a boutique PE firm. When its this late in the recruiting cycle smaller companies are the way to go.

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post #60 of 486
4/30/12 at 12:19pm
Wanted to follow up on this thread:

What is the difference in obtaining your CFA license vs. attending an MBA program? I feel the former may be more technical and applicable in the analyst position whereas an MBA may be better suited for management. Thinking about it though, it may seem that the CFA has an upper hand because they will be more involved with the technical side of the business before making the jump into management.

Currently still in PWM industry but considering the CFA, 6 months later, still even though my current position is indifferent about the idea

CFA I feel will give me a good scope and broad understanding and will pair well with my finance + statistics b.s. degrees

FWIW I have another year till I hit the "25 yo mild stone"
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