The Finance Connection’s 2010 Summer Analyst Recruiting Newsletter, Fall 2009

In this Issue

Introduction 2 The Summer Analyst Position 2-3 The Recruiting Process 3-4 Resources 5 Alternative Options 6 Resume Reviews/Mock Interviews 7 IB Resume Template 8 Sample “Good” Resume 9 List of Investment Banks 10 Closing 11

Contact Information

General Inquiries: fc.ucsb@gmail.com

Resume Review: ucsbmentorship@gmail.com

Website: www.sbfinanceconnection.com

Interested in an Investment Banking Summer Internship?

The Finance Connection’s Fall Quarterly provides

you with all the information you need to

know!

By

Tai Toribio, Vice-President

Ron Nussbaum, Co-Founder & President

Stephen Tang, Co-Founder, Advisor, & Mentor

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Introduction

The purpose of this newsletter is to provide a resource for UCSB Juniors seeking Summer Analyst positions in investment banking. If you are interested in pursuing an internship in investment banking this summer we strongly encourage you to review this newsletter over Winter Break. Although these internships are extremely competitive, by following our advice you can significantly increase your chances of securing a position. If you are unsuccessful in landing a Summer Analyst position, no need to panic; there is always full-time recruiting to look forward to. Towards the end of this newsletter, we have created a list of alternative options you should pursue to increase your chances of landing a full-time investment banking offer down the road. If you have any questions regarding this newsletter or the recruiting process in general, feel free to send us an e-mail at fc.ucsb@gmail.com or send us a message through the “Contact Us” page on our website. We anticipate you will find this newsletter helpful and hope you ultimately succeed in your pursuit of a successful career in investment banking.

The Summer Analyst Position

The Summer Analyst position usually lasts 8-10 weeks, beginning around the 2nd week of June and concluding around the 2nd week of August. Summer Analyst positions are available to “rising seniors” (students who just completed their junior year of college) as well as to those who will be graduating from a Masters program the following year. As a summer analyst, most banks will offer a one week training program at the internship’s onset, where basic accounting and finance concepts are covered. Following that, interns are expected to hit the ground running and assume the role of a full-time analyst, at a temporary, 8-10 week capacity. Responsibility given to summer analysts will largely depend on individual performance and staffing needs. Banks will assign interns work to the extent that the individual is capable of completing it at a satisfactory level. Type of work done may include: pitchbook creation, presentation compilation, valuation, financial modeling, research, and memorandum drafting. Not only are summer analysts expected to perform tasks that a full-time analyst would do, they will be fully integrated into the firm. This includes being lent a Blackberry and laptop, being staffed on deals, and working late nights if necessary. The program is intended to be an 8-10 week interview, in which summer analysts can determine whether the firm and industry is right for them, and for the firm to decide whether they want to commit the next 2-3 years to the individual. At the end of the internship, summer analysts are subject to a final review, in

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which they will receive feedback on their performance and at the discretion of the employer, an offer to return full-time after they graduate. In addition to the work aspect, some banks will offer extra activities for their summer analysts to participate in, such as, inviting executives to speak, community service outings, mentorship programs, and networking events. Again, experience will vary by bank, as some firms offer structured programs while others are more informal. Overall, an investment banking summer analyst program is not only a great way to learn about the industry, but also to get a foot in the door at some of the largest financial institutions in the world.

The Recruiting Process

Of the entire recruiting process, your biggest hurdle will most likely be actually landing the interview. Coming from UCSB, we recommend that you network with as many professionals in the finance industry as possible to increase your chances. For your convenience, we have created a list of investment banks you should consider applying to, which can be found in page 10. Make sure to cast your net wide and apply to all these firms, not just the top tier ones. To apply, go to each firm’s site and visit their career page. Fill out an application or e-mail your resume to the Human Resources director, with a short (5-6 sentence) cover letter introducing yourself and explaining why you deserve to be considered for the internship.

First Round Phone Interview The recruiting process for Summer Analysts usually begins in January when schools are returning from Winter Break. Firms have a set of “target” schools from which they recruit students and conduct on-campus interviews. Because these firms do not recruit at UCSB, your first round interview will consist of a 30-45 minute phone interview by first and second year analysts. The bulge brackets will typically select 40-60 candidates for this initial stage, asking you a combination of fit and technical questions, and possibly even a few brainteasers. At the end of this section is a brief list of common questions you can expect over the course of your interviews. For a more comprehensive list of questions, study the guides listed in the “Resources” section.

SuperDay Following first rounds, top candidates will be invited back to the firm’s office for a “SuperDay” (Final Round Interviews). On SuperDay, the candidate usually interviews with about 5 to 7 people in the office, ranging from first year analysts to Managing Directors and

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possibly even the office head. The bulge brackets in Los Angeles tend to hire around 2-5 Summer Analysts, with the San Francisco and Silicon Valley offices hiring a few more. On SuperDay, firms are trying to assess your technical knowledge, overall interest in the industry, and whether or not you fit in well with their culture. Technical questions will test your knowledge of accounting, valuation, mergers & acquisitions, and financings to name a few. You should also be prepared to discuss current events taking place in the financial markets and certain trends occurring in various industries. Reading articles from the Wall Street Journal, the Economist, the Deal.com, and other financial magazines and websites can help prepare you for these types of questions.

Common Fit Questions: Walk me through your resume. Why do you want to do investment banking? How have your experiences prepared you for the job? Can you give an example of a time when you displayed teamwork in a group project? Why do you want to work for this firm and in this division?

Common Technical Questions: What are the 3 main ways to value a company? Walk me through each technique. How are the 3 main financial statements linked? What are some multiples you use when conducting a comparable company analysis? What is free cash flow and how do you calculate it? What are the different types of financings and why would you choose one over the other?

Brainteasers: How many golf balls can you fit in a 747 plane? What is the angle formed between the hour and the minute hand at 3:15? If you toss 4 pennies in the air, what is the probability of them all landing heads?

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Resources

The column to the left displays a list of resources which should assist you in preparing for your interviews. “Resume & Interview Advice” features two websites providing career advice, sample resumes and cover letters, and also sample investment banking interviews. Wallstreetoasis.com is an online forum where students discuss various finance topics as well as post questions. Mergers & Inquisitions features articles posted by a former investment banker, with multiple issues relating to the industry. Under “Fit & Technical Interview Prep” you will find three study guides which contain a comprehensive list of fit and technical questions asked by investment bankers. Lastly, “News Articles” contains a brief list of recommend news sources you should read to understand the current financial environment. As mentioned before, your interviewer will be looking to engage with you in a discussion relating to the financial markets.

Additionally, by logging into GauchoLink (http://career.ucsb.edu/students/gaucholink.html) you can actually visit other career sites and download some guides for free. You can also log into Vault.com and download their guides for free by using your UCSB e-mail and password.

Resume & Interview Advice GottaMentor.com Vault IB Interview Video (http://www.vault.com/wps/portal/usa/videos). Click on “Job Search and Interview Advice”

Blogs

Wall Street Oasis (www.wallstreetoasis.com)

Mergers & Inquisitions (www.mergersandinquisitions.com)

Fit & Technical Interview Prep Vault Guide to Finance Interviews (Can be downloaded through GauchoLink)

200 Investment Banking Interview Questions and Answers (http://www.mergersandinquisitions.com/investment-banking-questions-and-answers/)

Wall Street Oasis Technical & Behavioral Interview Guides (http://www.wallstreetoasis.com/wsoguides)

News Articles

Wall Street Journal The Economist TheDeal.com

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Alternative Options

As mentioned before, Summer Analyst positions are difficult to come by. Therefore, it is imperative you have a back-up plan to make yourself a more attractive candidate for full-time investment banking recruiting. Below we have created a list of alternative companies you might look to for an internship in case you are unable to land the investment banking summer analyst position. Although this list is not exhaustive, it serves as a good starting point. If these companies don’t suit you, try searching for others through Vault.com. The best way to approach these alternatives is to begin by visiting the websites of companies that interest you. Here, you can familiarize yourself with a company’s internship program by reviewing the content on its careers page. Next, we recommend that you contact a company representative and request to arrange a 10-15 minute informational interview (in person or over the phone, whichever they agree to). This is an effective, unobtrusive strategy for gathering reliable information about a company and for establishing your network with a prospective employer. Although you may be rejected more often than you’d like, with respectful persistence you are sure to find someone who will lend you their time. From this initial contact, you can begin asking more specific questions about available positions/internships within their firm. Though a position with these companies may differ greatly from investment banking, you may find that these positions better suit your interests and skills after all.

Mgmt. Consulting Research Investment Mgmt. Corporate Development

Accenture Barclays Capital Alliance Bernstein Alcoa

Bain & Co. BofA Merrill Lynch American Ctry. Investments Altria

Booz & Co. Citi BlackRock Chevron

Boston Consulting Group Credit Suisse Franklin Templeton Disney

Deloitte Consulting Fitch Legg Mason Exxon Mobile

McKinsey Goldman Sachs Mesirow Financial IBM

Monitor Group JP Morgan PIMCO Johnson & Johnson

Navigant Consulting Moody's TCW Proctor & Gamble

Oliver Wyman Morgan Stanley The Vanguard Group Whirlpool

The Parthenon Group RBC Capital Markets Western Asset Yahoo

Hedge Funds Accounting Valuation Advisory Commercial Lending

Bridgewater Associates BDO Seidman Alix Partners BofA

Citadel Investment Group Deloitte Duff & Phelps GE Capital

D.E. Shaw Group E & Y Houlihan Lokey JP Morgan

Marathon Asset Mgmt. KPMG Marshall & Stevens Prudential Capital

Passport Capital Mgmt. PWC Trenwith Group Wells Fargo Foothill

* The “Accounting” section comprises Audit, Advisory, and Transaction Services

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Resume Reviews & Mock Interviews

The following page contains a resume template from Mergers & Inquisitions, an online blogging site for aspiring investment bankers. You can download the template from http://www.mergersandinquisitions.com/investment-banking-resume-university-student/. Additionally, a sample resume has been provided with content appropriate for application to an investment banking summer analyst program. Finance resumes are different than most other resumes so you should make sure that the person reviewing your resume has experience in writing/reviewing resumes in the industry. Your resume should be quantitative (using numbers when applicable) and should demonstrate your experience with financial statement analysis, financial modeling, deal/transaction experience, and research analysis. It is also beneficial to include any leadership experience you’ve had in the past. If you would like to have your resume reviewed by someone on the board, send your resume to ucsbmentorship@gmail.com, with “Resume Review” as the subject of the message. We will also be offering mock phone and in-person interviews early next quarter to help you improve your interviewing skills. To schedule an interview, send us an e-mail to the address listed above.

Winter Quarter Offerings

Mock-Phone/In-Person Interviews

Resume Review Workshops

Cover Letter Workshops

Resume Book Submission

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IB Resume Template

[Name] [Physical Address]

[Phone Number] | [Email Address]

EDUCATION

[University Name] [City], [State/Country] Bachelor of [Arts/Science] in [Major] Expected [Graduation Date]

� GPA: [xx] / 4.0; SAT: [xx] [If you’re outside the US, list grades under your system here instead]

� Honors: [xx]

� Relevant Coursework: [Economics / Accounting / Finance classes, anything business-related]

WORK & LEADERSHIP EXPERIENCE

[Company Name] [City], [State/Country]

[Position Title], [Group Name] [Start Date] – [End Date]

� [Summary sentence stating what you did and the overall results of your work]

� Selected [Client / Project / Transaction] Experience:

� [Project #1]

� [Led team to do xx, which resulted in more efficiency / time or money saved / higher sales]

� [Project #2]

� [Analyzed xx and concluded that key factor was xx, which made project viable / not viable; resulted in

company proceeding with project]

� [Project #3]

� [Created xx new method for doing xx; led to increased efficiency / sales]

[Company Name] [City], [State/Country]

[Position Title], [Group Name] [Start Date] – [End Date]

� [Summary sentence stating what you did and the overall results of your work]

� [Led team’s efforts to do xx by creating/managing xx; resulted in increased sales / profits / cost savings]

� [Analyzed options available for xx and recommended xx based on time and resource considerations;

implementation led to successful marketing of xx]

� [Developed strategy for marketing to new prospective clients / fund-raising / promoting brand; resulted in

increased awareness / capital commitments]

[Student Club Name] [City], [State/Country]

[Position Title] [Start Date] – [End Date]

� [Summary sentence stating what you did and the overall results of your work]

� [Recruited over xx members to club with promotional campaign]

� [Organized conferences, speaker events and community events]

SKILLS, ACTIVITIES & INTERESTS

Languages: Fluent in [xx]; Conversational Proficiency in [xx]

Technical Skills: [List any programming languages – not MS Office/Excel]

Certifications & Training: [Any extra courses or programs relevant to finance]

Activities: [Student Clubs, Volunteer Work, Independent Activities]

Interests: [Keep this to 1-2 lines and be specific; do not go overboard]

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Sample “Good” Resume

Johnny I. Banker 123 Finance Blvd, Redwood City, CA

(555) 555-5555 | jbanker@ibanking.com

EDUCATION

University of California, Santa Barbara Santa Barbara, CA Bachelor of Arts in Business Economics with Accounting Expected Graduation: June 2010

� GPA: 3.8/ 4.0; SAT: 2275

� Honors: Dean’s Honors 7 consecutive quarters; College of L&S Honors Program

� Relevant Coursework: Intermediate Macroeconomics, Monetary Economics, Financial Management,

Corporate Finance, Intermediate Accounting, Financial Statement Analysis

WORK & LEADERSHIP EXPERIENCE

West Coast Capital San Francisco, CA Summer Analyst, Small Cap Energy Group May 2009 – September 2009

� Performed financial and market analysis of domestic, small cap energy companies

� Selected Project Experience:

� Inergy Holdings

� Led team to adopt new reporting procedure, resulting in 25% time savings on weekly financial reports

� Broadwind Energy

� Analyzed future cash flow projections and uncovered instability in key revenue source, proving

investment to be unpractical; resulted in company avoiding 20% loss on investment

� America West Resources

� Helped create pitch book to present to fund investors; book completed 2 weeks ahead of schedule

NRG Energy, Inc. San Francisco, CA Finance Intern June 2008 – September 2008

� Assisted in the creation of cash flow and capital budgeting reports, as well as cash flow projections

� Analyzed debt repayment options and provided recommendation based on time and resource considerations;

implementation led to 3% increase in free cash flow

� Reorganized cost recording system, resulting in 3hrs/week time saving for 6 engineers

Investment Club at UCSB Santa Barbara, CA President September 2008 – May 2009

� Created and implemented use of a new constitution; delegated club priorities to 5 board members

� Recruited over 40 members to club with promotional campaign

� Organized 12 conferences, speaker events, and community events over 30 week period

SKILLS, ACTIVITIES & INTERESTS

Technical Skills: Literacy in Visual Basic for Applications

Certifications & Training: Training in LBO, M&A, and IPO modeling

Activities: Alpha Phi Alpha Social Chair; intramural flag football and volleyball participant

Interests: Following domestic and international equity markets; following college and professional football

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List of Investment Banks

Bulge Brackets &

Prestigious Boutiques

Boutiques &

Middle Markets

Boutiques &

Middle Markets

Barclays Capital America's Growth Capital Macquarie Capital

Blackstone Group Baird McGladrey Capital Markets

BofA-Merrill Lynch BMO Capital Markets Miller Buckfire

Centerview Partners BNP Paribas Montgomery & Co

Citigroup BroadPoint Gleacher Morgan Joseph

Credit Suisse CIBC World Markets New Century Capital Partners

Deutsche Bank Cowen & Co. Oppenheimer & Co.

Evercore Partners Deloitte Corporate Finance Piper Jaffray

Goldman Sachs Duff & Phelps PJ Solomon

Greenhill & Co. Ernst & Young Corporate Finance PWC Corporate Finance

JP Morgan FBR Capital Markets RBC

Lazard Financial Technology Partners RBS

Moelis & Co. Financo Revolution Partners

Morgan Stanley FTI Consulting Roth Capital Partners

Perella Weinberg GCA Savvian Sagent Advisors

Rothschild Harris Williams Sandler O'Neill Partners

UBS Houlihan Lokey Seven Hills

Wells Fargo HSBC SMH Capital

Imperial Capital Stifel Nicolaus

Jefferies SunTrust Robinson Humphrey

JMP Securities The Mercanti Group

Keefe Bruyette Woods Think Equity

KPMG Corporate Finance Thomas Weisel Partners

Lazard Middle Market Wedbush Morgan

Lincoln International William Blair

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Closing

Although summer analyst positions with investment banks are most suited for juniors heading into their senior year, much of the information contained herein is applicable to all of those considering a career in finance. By studying the resources we have provided, and even more, by understanding the qualifications expected of first year investment banking analysts, you can become a competitive candidate in the market for jobs in finance. We hope this newsletter has given you some direction when it comes to planning for summer employment. If you encounter any difficulties in your career planning ahead, remember that we’re here to help. In the words of Jim Rohn, “You must either modify your dreams or magnify your skills.” Good luck! The Finance Connection Board