Industry Chat: Investment Banking - University of …...Industry Chat: Investment Banking September...
Transcript of Industry Chat: Investment Banking - University of …...Industry Chat: Investment Banking September...
Industry Chat: Investment BankingSeptember 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
Consulting15%
Real Estate3%
Investment Banking/Brokerage
27%
Diversified Financial Services
12%
Media & Entertainment3%
Social Impact10%
Private Equity5%
Investment Management8%
Technology6%
Other11%
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 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
Investment Banking Recruiting Timeline
Self-Assessment
Research & Strategy
Networking
Resume Development
Cover Letter Development
Interviewing
Offer Management
Transition to Work
August – November (explore your interests, motivators and skills)
August – January (research and identify target industries, functions and geographies. Create a job search plan.)
October – January (engage in conversations to build relationships, gather information and identify potential opportunities)
August – October (create a document that reflects your passion, experience and skill set)
November – February (create a document that complements your resume and reflects your interest and qualifications for specific jobs)
January – March (prepare for and engage in conversations about your interest and qualifications for specific jobs)
February – (evaluate job offer(s) and manage employer relationships)
May – June (prepare for internship)
MBA Career Management
Companies That Made Banking Internship Offers in 2016*Preliminary Data as of 7/1/16
Bank of America Merrill Lynch
Barclays
Citi
CITIC PE
Citigroup Global Markets Inc.
Credit Suisse
Deutsche Bank
European Stability Mechanism
Evercore Partners
Goldman Sachs & Company
Greenhill & Co, Inc.
Guggenheim Securities, LLC
Houlihan Lokey
J.P. Morgan
J.P. Morgan Asia Pacific
Jane Street
Lazard, LLC
Miller Buckfire & Co.
Millstein & Co.
Morgan Stanley
Perella Weinberg Partners
Peter J. Solomon Company
Piper Jaffray & Co.
PJT Partners
TAP Advisors
UBS
Wells Fargo Securities
XP Securities
Source of Investment Banking Internship Offers: Class of 2017 *Preliminary data as of 7/2/16
78%
9%
2%
6%
2%1%
2%
Wharton Job - On Campus Recruiting
Wharton Job - Job Posting
Other
Personal Networking Connections
MBA Career Management Contact
Trek Networking
Wharton Alumni Contact
Timing of Investment Banking Internship Offers: Class of 2017*Preliminary data as of 7/6/16
0
10
20
30
40
50
60
70
80
Timing of Investment Banking Full-Time Offers: Class of 2016*Preliminary data as of 7/6/16
0
10
20
30
40
50
60
70
80
FT Salary Breakdown: Class of 2016*Preliminary Data as of 7/1/16
Investment Banking
Number Accepted 89
Number Accepted (with salary
data)
88
% of Accepted 16.09%
Annual Salary Range $27,600-$175,000
25% Annual Salary $125,000
Median Annual Salary $125,000
75% Annual Salary $125,000
Number with Sign-On
Bonus
83
Median Sign-On Bonus $50,000
Companies That Sponsored Students in 2016 – Intern*Preliminary Data as of 7/1/16
Investment Banks
Bank of America Merrill Lynch
Barclays
Citigroup Global Markets Inc.
Credit Suisse
Deutsche Bank
Evercore Partners
Goldman Sachs & Company
J.P. Morgan
Lazard, LLC
Miller Buckfire & Co.
Millstein & Co.
Morgan Stanley
Perella Weinberg Partners
Qatalyst Group
UBS
XP Securities
Companies That Sponsored Students in 2016 – FT*Preliminary Data as of 7/1/16
Investment Banks
Bank of America Merrill Lynch
Credit Suisse
Deutsche Bank
Evercore Partners
Goldman Sachs & Company
J.P. Morgan
Lazard, LLC
Macquarie Holdings (USA) Inc.
Morgan Stanley
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
Total Students Recruiting for Banking 175
Total Students with 1st Round Bulge Bracket Interview 98
Total Students with 2nd Round Bulge Bracket Interview 75
Total Unique Offers Received from Bulge Bracket 57
Total Students Receiving Three Bulge Bracket Offers 18
Total Additional Offers due to Matching Program 7
Total Offers from Matching Program
(accounts for students who may have received multiple)
118
“Thank you for
implementing this
system”
Can we do this at
the other
schools?
“You did an
amazing job, you
should feel very
good about this”
• Results:
• This Year:• All boutiques recruiting on campus will participate.
• Students can receive a maximum of 3 offers across bulge/boutique firms.
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.
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
• Pillars of Wall Street
• Deep dive accounting
and Excel
• 3 Statement Modeling
• Training the Street
• Corporate Valuation
• M&A Financial Modeling
• 2Y Panel
• IB Recruiting – What to
Expect: Sept 15
• Success on the
Internship: April
WORKSHOPS
• Wharton Finance Conference:
October 21
CONFERENCE
Fast Facts:
• 450 Members 2015-2016
• Focus on Investment Banking and Private Wealth
Management recruiting
• 3 Annual Treks
• Houston, San Francisco/LA, London
Next Steps and Resources• MBACM
─ One-on-One Advising
─ MBACM Student Website
─ Career Workshops
• Finance Club
─ Sept 15th at noon, What to expect
─ Mock EIS, October 10th
• CareerPath
─ Complete your profile and set email preferences
─ Create saved job searches
• 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, Career Advisor
Melissa Nowaczyk, Recruiting Relationship Manager
Finance Club President Contact info
Follow MBA Career Management:
@WhartonMBACM
WhartonMBACM
Questions?