Those tests can be notoriously difficult, especially under stress, and will demand a great deal of preparation. Indeed, it would be a shame to fail an interview because of something that is in your control! In fact, the main reason why so many students fail investment banking interviews is due to the lack of preparation or overconfidence with regard to those tests.
The tests are generally provided by SHL, an organisation that creates those tests; usually, there are three kinds of tests. In a numerical reasoning test , the examinee is required to answer questions by using information presented in statistical tables and graphs.
Questions are given in a multiple choice format. In SHL verbal reasoning tests , you are usually presented with a passage and required to evaluate a set of statements by selecting one of the following possible responses. In the course of these tests you will be asked to recognize patterns that are presented by series of shapes and thus induce and predict which shape should come next in line.
JobTestPrep , a UK website, does a good job of helping students prepare for those tests. Below is a detailed list of headhunting and recruitment firms that operate in the field of investment banking in London. Sister firms, one catering for junior and middle management Argyll Scott , and the other focused on executive search Redgrave Partners in Private Equity, Corporate Finance and Corporate Development disciplines. Clients include large cap LBO funds, mid cap, growth equity and distressed turnaround funds.
Equities clients include investment banks, regional specialists, mid-cap security houses, boutique brokers, specialist brokers, agency brokers and execution only houses with the team focussed on equity research,equity sales. Dedicated stand alone Investment Banking team with a track record and experience of the sector for over twelve years. Typical mandates at the Analyst to Director levels.
Partnering with clients on trends in the Investment Banking market including compensation trends Analyst report , analysis of strategic and cultural differences between Banks and up to date knowledge of hiring patterns. Started with the vision to fill a perceived gap in the market for a mid level contingency firm with the service ethos of an executive search firm.
Our experienced Consultants joined Austin Andrew to establish lasting and mutually beneficial business relationships with our clients. We strive to develop a long term understanding of our clients built upon trust and integrity, and we always aim to exceed expectations. Focuses on debt, equity and derivative sales, trading and research; wealth management; financial management, operations and middle office; credit and market risk and private equity. Dartmouth Partners recruits individuals with an outstanding academic or professional background into firms who recognise that a competitive edge is gained by finding and hiring the best human capital available.
They work with candidates broadly from years experience. Greenwich Partners are a search and selection firm focused on Buy and sell side equity research, Private Equity, credit and debt investment funds, asset management, alternative investments such as fund of funds and secondaries and corporate development and strategy. The firm focuses on targeting candidates from strategy consulting firms, research houses, investment banks and other private equity or investment firms.
Most of their work is at the Analyst to Director level. Broad-finance recruitment firms with strong relationships with most investment banks and boutiques. Purely specialised finance-focused search firm with broad coverage across both buy and sell side, with strong relationships with many investment banks and PE funds. We recruit from Senior Analyst through to Managing Director level and have been selected on numerous occasions as the Managing Agent for multi-vacancy assignments.
Would like to add your firm, contact name or anything else to this list? After having gone through all the online tests, case studies, presentations and the whole investment banking application process, the last five or ten minutes of your interview will always end with "do you have any questions for me?
While this part of the interview is not the most critical one, many applicants still manage to destroy their chances by asking the wrong questions, or not knowing what to ask. Our base advice is to keep the questions fairly simple. While asking a very smart question will probably not be the key factor that will get you the job, asking an overly complex or inappropriate question will definitely hurt your chances of getting hired.
Therefore, do not try to be the most original or smartest applicant by asking overly engineered questions. Here is a selection of the most appropriate questions to ask:. We strongly suggest not to go beyond those categories to limit potential damage.
Questions to not ask are as follows:. Typos and grammatical errors simply show that you did not spend enough time on your CV, and therefore, you do not take your applications seriously. This goes together with the first point. Do not forget that a CV is meant to be an advertisement for yourself. Expand in detail the relevant experiences, and delete entirely what does not sell you best.
Note that this also works for any other kind of experience. Also, remember to limit your resume to one page only. For instance, "I analysed the financial reports of company xxx. I compiled the reports. This mostly relates to projects in investment banks.
One of the most common questions that gets asked here is this: "How do Imake it into Goldman Sachs? These are the tips we gathered from a "Goldmanite", who spent 16 years at the firm:. In the U. Firms like Goldman can afford to be very picky, and they hire only the best and brightest.
Keep current on world events. Play sports. Play in a band. Act in a play. Learn about wine. Understand how companies market, sell, and produce goods; understand finance and accounting. Also, an MBA will really help. Call them and ask for advice. This is the absolute best way to get your foot in the door.
However, this is the most important part. I decided that I wanted money, so I set a course to get it. If you sincerely have a passion for investment banking, go for it. You will be given some information about the clients; your task will be to answer those questions, and justify the advice you would give to the client. Most case study exercises happen during the assessment centre day, i. Occasionally, some banks give candidates the case study materials beforehand and you will have some time usually one night to prepare.
Interviewers want to put candidates into a "real" business environment to test their capability of handling real work. That is why a case study usually weights much more than any other interview or test during the investment banking recruitment process. Client A wants to get your opinion on which company they should acquire from four companies and why Company B needs to raise capital.
They come to you and ask if they should raise debt or equity, and the best way to do it. Company C approaches and asks you whether they should expand through acquisitions, or organically? There are only few ways to practice case studies: i make sure you read the business news often and ii practice as many as possible.
The harsh reality is that most big banks will discount anyone without a 2. Banks receive so many applications that they have to find methods to make a selection, and the first selection is based on academic performance. All is not lost. There are a few ways that will allow you to get into big investment banks, even though this can be difficult initially.
Here are a few commonly suggested routes:. This is the ideal scenario if you studied something other than finance or business for your first degree. Often, this will be sufficient to mitigate your poor performance. When applying to banks, make sure you highlight some mitigating factors for your poor undergraduate performance.
In our view, this is a mistake, because such transfers will be highly unlikely. Therefore, we encourage you to apply for lower-tier institutions that may overlook a weak academic performance. These banks do not receive many applications compared to Goldman Sachs and Morgan Stanley, and also London investment banking boutiques , for which we have compiled an extensive list.
Those smaller banks tend to focus on some niche areas such as technology, retail, or natural resources sectors. This will be your chance to move into top investment banks. Many bankers did not start as an analyst from the graduate scheme. Banks typically specialise in Industry groups technology, retail, healthcare , and therefore industry experience is highly sought after.
Life as an investment banking analyst is very hard, so it may not be in your best interest to directly enter into investment banking. There is one way to skip this step: the MBA. Therefore, one solution to poor academic performance would be to do something that you truly enjoy for two or three years work for a corporation, a non-profit organisation, start a business , excel at it, and prepare yourself for a top MBA.
A top MBA on your CV will essentially give you a shot at all the best investment banks, without the pain of a three-year stint as an investment banking analyst! This strategy is often very effective. Many students believe that having a degree unrelated to financewill hurt their chances of getting an interview with London investmentbanks. In your early days as a junior banker, your job will be all about the numbers. Are you a Computing Science major?
Try to practice with native English speakers. If your university is the best or among the top in your country, say so. Having said that, giving too many details will bore them. Useful ways to ask for clarification are, "Could you please clarify your questions? Most employers are looking for diversity of thought, languages and experience. There is no engineered answer for this, but, based on our experience of interviewing candidates, the best answers are:. Investment Banking is a challenging career and you will indeed learn a lot through the experience.
Investment banks attract top candidates from the best schools all over the world. Several candidates do have a genuine passion for finance and investment banking. If this is your case, make sure to stress this. Many bankers love their jobs because they have a visible impact on society and industries. You will need to substantiate with hard facts why you think it is interesting.
Nevertheless the answers above are just "valid" ones. My on the topic is that you should add a personal touch by using a personal "story". Your friend, family member or alumnus, who works in an investment bank, inspired you.
The investment banking world is a very, very small world. This is good because it shows your interest, but it also shows that you are competitive. Again, don't make this up, as many bankers like to check. Do you think the transaction makes sense? What you need to show is that you like dealing with a lot of numbers.
Bankers are well-known to have a short attention span. To conclude, the key words here are: prepare well and be truthful. Do not EVER lie. It is fine and doesn't mean all hope is lost. Don't wear different colored pants and jackets. Solid white is always a safe option. You are not trying to make a fashion statement so you should be conservative. Silk makes a nicer knot and dimple than most other fabrics. If you just can't, at least make sure it's well-groomed.
Golden Rolex if you do have one. Long-sleeve blouses are best. Don't wear a hairstyle that covers your face. In general, keep jewellery simple, small and discreet. As soon as you can, after at least one to two years of work experience. A Masters degree can teach you a lot about finance. All MBAs are not equal. This is in fact the main purpose of a brainteaser. Brainteasers can tell the difference. With brainteasers, the best way is to tackle them step-by-step, with a clear logic in mind. So how to handle brainteasers?
Don't try to answer within five seconds. The trick here is to think that the numbers from 1 to can come in pairs that add up to Think about how many pairs there are. That's your answer. Another one: "what is 49 x 63? Remember that the hour arm will also move as the minutes pass. The clock is a degree circle. You've got a pool of water. How many times in a day are the hands of a clock at right angles?
Answer: A car drives from point X to point Y, a distance of 60 miles, at an average speed of 30 mph. Answer: not possible as one-way journey has already taken 2 hours. You have 5 pots of coins. One of the pots contains only fake coins. The fake coins weigh 9 grams. The difference between the total weight and will be the answer, e. It sounds simple, but getting this wrong may jeopardise your chances of passing the interview.
Date, time, and length of the interview. Ask whom you will be talking to. This will help your preparation. It would be unacceptable to run out of battery during a call. Make sure you are in a quiet space and undisturbed. Do not ask about money or working hours,obviously. Identify all potential questions that will be asked and practice your answer out loud.
This will help make you sound more confident on the phone and will leave a good impression. Also remember to speak slowly and clearly, especially if you have a foreign accent. Boutique investment banks are usually smaller investment banks that specializes in certain types of sectors or companies.
They tend to work on smaller deals or niche deals, usually below a billion dollars. Often, they will work on the the sell-side of a deal i. They are good places to consider if you didn't get an offer at the bulge brackets as they are not sensitive to poorer academic records except for the most prestigious ones and will be a first good step into investment banking. This independent capital markets adviser provides corporate finance advice, asset management, and deal execution. Large accounting firm providing management consulting and transactionservices.
Aperios Partners is a financial services group with activities in Investment Management and Investment Advisory. The company caters to corporations, venture capitalists, institutional investors, and private clients through asset management, corporate finance, sales, and trading.
Investment bank focused exclusively on healthcare. Canaccord Genuity is a global, full-service investment bank focused on growth companies, with operations in 10 countries worldwide and the ability to list companies on 10 stock exchanges.
The firm offers mergers and acquisition, private placement, financial engineering, and business disposal and valuation advisory services. Additionally, it provides legal consulting services. The firm caters to information technology, telecommunications, and media sectors. Developing its presence in the UK. We provide direct counsel to corporate strategists and senior management. The firm provides mergers and acquisitions and sell-side advisory to technology-based sectors including SaaS and cloud services, mobility, IT services and outsourcing, internet commerce, infrastructure, information management, enterprise applications, and digital marketing.
Strong in the US, has a London office. It provides merger and acquisition and corporate advisory services. The firm offers mergers and acquisitions, fairness opinions, valuation, cross border transactions, bid defence, and buy and sell side advisory services. Additionally, it provides environmental liabilities, carve outs, supply agreements, regulatory compliance, and intellectual property consulting services. In the majority of cases, it will include the following:.
The first task when you arrive will be to retake verbal reasoning and numerical reasoning tests. They are usually paper-based and can be slightly more difficult than the online version, or longer. The best way to practice is by going on to the SHL website and trying the sample exams. My advice is to try all the easy questions first, and come back to the hardest ones later. You may also be asked to create a SWOT analysis. This will be similar to the first assignment, except that this topic will not be finance-related.
Those usually come at the end of the process, right after lunch or on the following day. Wear business formal suits at all times. Dress to impress, while remaining conservative. From what we've experienced, here are our observations:. London-based banks cover the entire European continent, and often, they also cover Middle East. Additionally, speaking various languages means that you will be a more "transferable" resource.
While speaking European languages is an edge, but isn't the critical decision factor. It could be better grades, more extra-curricular activities, or speaking more languages. Remember that "cultural awareness" is as important as the practical use of languages. Banks are very global and multicultural organisations. But should you really care about other firms? This seems like a straightforward question; however, a lot of people handle this very badly. Thanks again for the opportunity.
Best Regards, XXX. For interns: be aware that this is a very risky move. You have to make a judgment call - is it worth taking the risk? Club memberships are great if you can demonstrate that you are "active". The point here is to show initiative and leadership potential. It typically shows that you have good interpersonal skills and initiative. Anyone can start a small business with a good idea. Below is some key advice:. At smaller firms i. So you still need to pay attention. What should be the structure of investment banking cover letters?
Paragraph 3: An explanation of your relevant skills for the job that make you a strong applicant. Separate recruiting strategy advice i. Please enquire at founder askivy. This can't but impress! Being a "well-rounded" person is a recurring recruiting theme among investment banks. They show the bank your potential leadership skills, creative skills and open-mindedness. This section at the bottom of your CV is not there to look nice or to fill some space.
For each aspect, it will need to either show: leadership , creativity , stamina, or intelligence. When writing your CV, do ask yourself: "How does this hobby add value to my application? It's a bit like going to the Army. Those long hours spent checking models and presentations and making everything perfect to the tenth decimal point will transform you into a highly efficient analytical machine. Apart from management consulting jobs, no other job can give you the same level of exposure to corporate strategy at such a junior level.
But when you are working on three deals at the same time, it is 3 a. Learning to prioritise, break down tasks, and stay cool under any circumstances are some of the skills you will develop in little time. Corporate strategy, private equity, hedge funds, startups, you name it. The job has its downsides, of course. The secret to avoid this is to maintain hobbies outside work, keep your ego in check, stay in touch with the real world as much as possible i.
After being ceded by China to the British in , the colony of Hong Kong rapidly became a regional hub for trade with China and South Asia. Hong Kong initially started as a shipping and textile export center, but China's open-door policy in was the year that marked the new era of Hong Kong and its re-birth as a major economic and financial center. Manufacturing moved out to mainland China, was replaced by services, and Hong Kong GDP boomed as trade and investment links with China exploded.
Hong Kong has been handed back to China in , but it is still the. Hong Kong maintains a sound British-style legal system, has had a stock market since the largest in Asia after Tokyo , English is spoken fluently, overall markets are well-managed, and the Chinese government is not too involved with its business yet. Finding a an investment banking job in Hong Kong. If you want to get an investment banking job in Hong Kong, you should note that China's economic rise hasn't gone unnoticed by top students and investment bankers across the world.
More Chinese students and investment bankers now want to go back home as opposed to staying in the U. On top of that, competitive salary packages, low taxes max. London and New York. In other words, if you do not speak a local language Mandarin, Cantonese or do not have useful experience or local contacts, competition will be very intense.
In this case, hurdles are big and you will not be received with open arms given that:. Essentially, somebody else will have to do your work. Because of this, you won't be taken seriously by clients or senior management. What can you do about it? Try to start in London and ask for a transfer later on, or network very very hard and start to learn an Asian language!
Job hunting is much easier if you have local ties in China or Hong Kong, but you will still face intense competition. For London-based students and bankers, the best way to move to Hong Kong is often to start in London and ask for a transfer or look for a job at the associate level after two to three years.
A London experience will certainly give you a strong edge and earn you respect from colleagues and clients alike! In addition, analyst training is substantially better in Europe so you'll stand out compared to your peers, and analyst lifestyle is also much better in Europe so you'll avoid some suffering. Investment banking in Hong Kong will be an entirely different experience to that of London or anywhere in Europe and North America , and is usually considered to be a less prestigious location for investment bankers.
The main reason is that Hong Kong and China are less sophisticated markets. Getting deals done relies more on "network" than strong execution skills or original ideas. This means that you will spend less time doing complex models and executions, and much more time writing prospectuses and travelling to talk to clients about latest market and industry trends.
If you intend to stay in the region for the long-term or move on to another job locally, you don't need to be a modelling star anyway, and it is the network you are building over the years that counts. If you intend to go back to Europe, you will still be able to catch up on those skills and having the "China experience" on the CV is an interesting differentiating factor. Finally, IPOs tend to be very profitable and this will be reflected in your year-end bonuses.
Investment Banking Lifestyle in Hong Kong. On top of this, you need to add frequent travels Hong Kong is a small island - your clients will mostly be in China and a good dose of "socialising" with your colleagues and clients after work. Face time is also more common in Asia for cultural reasons, so working hours a week is commonplace, but it gets somewhat better as an associate.
The food is great, the city is lively and exciting, China is just a subway ride away and it is a fantastic place for young singles to have fun. There is a strong financial community and plenty of Western and Chinese-style entertainment which can rival the offerings in London and New York. If you like the green, quiet and open spaces of London, Hong Kong may not be the place for you. The issue is space.
Nevertheless, many banks do subsidise housing to some extent. Other than that, food is especially cheap and other expenses commute, entertainment, travel, etc. Investment Banking compensation in Hong Kong. While salaries and bonuses at the junior level are pretty much in line between the two cities on average, on an after-tax basis, Hong Kong bankers will earn much more due to the very low tax rate.
On top of that, because housing is so expensive, many banks do subsidise housing in the form of a housing allowance. For locals and native speakers, after a couple of years, there will be many opportunities to work in mainland China at some point or for mainland Chinese banks, which can prove to be incredibly lucrative. Based on our experience, of course they do. It is a fact that most bankers' friends are themselves bankers. Your friends will often consist of other junior bankers in other teams i.
First, other bankers will be the only ones who can understand your hardworking lifestyle working very long hours, weekend work, emergency calls to the office and the only ones who can share with you "war stories" and rough experiences. If you start to talk about the pitchbook you had to re-print at 5 a. Since this job can be hard emotionally at times, you will need to share your experiences with people who understand you.
Second, they will be the only available ones. The social life of investment bankers consists of weekday dinners at the office, minute coffee chats, weekend dinners that are always organised at the last minute because you can never plan in advance.
If you cancel a dinner at the last minute, your banker friend will understand. If you have to rush back to your desk while having coffee, they will also understand. The harsh reality is that you will only be able to organise events at the last minute. But this is not as bad as it sounds. Making friends with other bankers is part of the experience, and this strong network will help you tremendously in your career going forward. You will also make some of your best friends during banking training and while on the job, because you will be able to share tough times together, and good times together i.
The question is, are your non-banking friends nice enough to accept not seeing you several months in a row? You can have a social life, but it will be well-organised and planned at the last minute. Bankers do have social lives, take holidays, go to museums, go to nice restaurants, etc.
The main difference is that you will not be able to plan ahead very often, and you will not be able to take part in regular activities such as yoga classes, tennis classes, etc. Dinners will be planned a few hours beforehand.
Trips and holidays will be booked a week in advance at best, if you are lucky except for Christmas and August holidays, which are typically very predictable. Be ready to be very flexible! In general, the higher-profile the bank, the less time you will have for social activities.
Working at a Goldman Sachs or a Morgan Stanley means good experience and very good pay, but very little time to yourself. If you work for a BNP Paribas or a Commerzbank, you will have much more free time and much less weekend work, but you will probably not work on many deals and be paid sometimes substantially below the market rate. Also, some banks have a better reputation than others in terms of work-life balance, and some teams within banks also have different lifestyles.
Usually, this is mostly driven by the team size, the deal flow success of the team , and the style of your team head. Generally, people are more respectful of your personal life, and periods such as Christmas and the month of August are very quiet. Therefore, compared to your Hong Kong or New York-based counterparts, you will be very lucky.
They only get two weeks of holidays, and most of them are not able to take all of those days. In general, they also work much harder for much longer working hours. This is not related to the business itself, it is more related to the local culture.
As a junior analyst, you will be slower with more things to learn. Also, because you are the most junior, you will be assigned the most tedious and time-consuming tasks. When you become more senior, you will be much faster, and you will "know the ropes", and will be able to manage your time much better.
As an associate, work become easier generally as you will have analysts to support you with your work, and you will typically start to leave earlier though still not at 7 p. By the time you get to VP, things start to really slow down getting closer to that 7 p.
Finally, by the time you make it to Director and Managing Director, going home by 6 or 7 p. The pressure for them is not on completing tasks anymore, it is on generating deals and bringing in new clients. One of the key question students and future bankers ask themselves is "how bad are the hours in investment banking"?
It is quite often difficult to get a real answer to this question. And if you want to ask HR or recruiters at banking events, well And the truth is that is really depends. Here is the unbiased answer from AskIvy. Its difficult to generalise as it depends on various situations further explained below , but in Europe expect a minimum of 70 hours per week during slow times and up to hours per week at busy times. Investment bankers usually start quite late because they finish late , at around 9.
A quiet day means going back home at 9pm or 10pm, a more standard day would be finishing at anything between 10pm to midnight, and a busy day can stretch until the following morning. At peak times, it is not uncommon for analysts to finish past 4pm for several days or weeks in a row. Weekend work is very frequent - this can be a few hours of catchup work on saturday or sunday, or at busy times working the all day on saturday and sunday.
But the most important point here is that working hours are totally unpredictable. But you can also get suddenly dragged into multiple important transactions on a friday night and not see the light of the day for months. Also, most of the day is usually relatively quiet between 10am to pm , but it often gets busy in the evening. No surprise there, because big banks will have more deal flow, and that means more work.
But it's also a culture thing - people in the US work much more than in Europe, so banks with a strong US culture will make you work much more. It is related to the working style of the team head some bankers can be more easy going, especially UK and some European bankers , and also of the deal flow of the specific team.
If the team is very successful, that will mean very long hours but if you end up in a team that only closes one or two deals per year, you'll have a more relaxed lifestyle. That is simply because clients are not active, which means less meetings. It does get a bit better with time. When you are a fresh graduate, you will spend a lot of time learning the ropes, so you will stay late. Also, you won't have anybody below you except interns to share the workload.
Most importantly, fresh recruits are not familiar with the politics in the office i. Unfortunately, it does get better but not that much - you will still work long hours throughout your analysts years. When you become an associate, the workload is slightly less, but you have a higher responsability so what you loose in working hours you gain in stress!! The best example is building financial models. It is not possible to have many people working on an excel model at the same time.
So when you are working on urgent deals, you need to work throughout the night to finish the model as fast as possible, and only when you are done can somebody review and check it. Simply put - most of the investment banking tasks just can't be split. Because bankers are expensive, you simply cannot have an army of bankers on standby "in case" to meet peak time requests.
Overall, it is cheaper to stretch resources and pay them a lot of compensate for the "stretching" rather than hiring more bankers that would be idle most of the time. London and New York have long been and still remain the financial capital cities of the world. For Americans and many from Asia Pacific too, London is also attractive given the more comfortable lifestyle it offers, and opportunities to work on deals across multiple European countries.
Investment Banking in London. New Yorkers often imagine their city at the centre of the world. Look at a map. America is on the left, Asia on the right, and in the middle is Europe. More precisely, London is in the centre. London has always depended on trade and immigration, which have been the key drivers of the city's status as a financial centre. Even as far back as in the nineteenth century, the City has always been dominated by foreigners in the business of banking and trade.
But after war engulfed Europe in , Europe had to recover and the City lost its place in global finance to New York. As the US was untouched by the war and the started to industrialise rapidly, it quickly filled the gap left by London and took the lead in financial innovation. But London eventually caught back in the last decade as the influx of so many sophisticated French, Italian, Spanish, German, Chinese and Indian immigrants started to dramatically improve the quality of London's workforce.
While after September 11 businesses suddenly had to struggle to get visas for employees to work in New York, or even to visit on business trip, visas for Britain have always remained easily available. Overall, investment banking jobs are easier to find and to keep for international students in London than compared to the US. The main reason is due to visa issues: for non-Americans, it is very difficult to obtain work visas or even visas for internships in the US.
The immigration process in the US is lengthy, complicated, and very expensive. Therefore, most investment banks in the US will not bother to look at CVs of international applicants: the United States is a very big country, and the talent pool in the US is sufficiently large for their needs.
In comparison, the immigration process in the UK is much simpler, cheaper and more transparent: there is a special "Tier I Visa" for highly skilled migrants it is granted based on a system of points that will take into account your education, age, current salary and any previous experience in the UK , and studying at a good university in the UK will also quickly open the doors to jobs in London, which is not the case in the US. The other reason is that languages and multicultural experiences are not as valuable as they are in the US than in the UK.
The US is a very large country, and therefore investment banks will mostly do domestic business as well as South American business , and will not require bankers to speak many languages. In Europe, speaking various languages, especially Europeans but also to some extend Asian languages, is highly valued.
On your CV, a stint in New York will always look very good and tend to impress people more than a similar stint in London. This is mostly because New York has had an established reputation as the leading financial centre for the last 70 years, the fact that the US still is synonym with the "American dream" for most people, and also because working in the US tends to be so much more intense. Americans work extremely hard and long hours - there is often no distinction between private life and professional life, especially in New York.
Therefore, you are more likely to close more deals and work on more transactions in the US compared to the UK. Therefore, from a general perspective, Americans tend to be better at financial modelling due to their more extensive experience, and they are used to handle a lot of stress compared to their European counterparts. A significant downside of working in NY however is that working in New York will not give you a "global" perspective of the investment banking business.
You will only know about the US financial system and regulations, and you will only know about the "American way", which will be extremely different from what is done internationally. Finally, another downside of working in the US is that future career options in the US will be limited as a foreigner, because things in NY are so US-centric.
US companies tend to hire local staff, and being an outsider it will be much more difficult to have the necessary professional network and cultural connection required to climb the hierarchy fast or change jobs. But if you intend move back to your country in the medium term, this is not a problem. However, New York is a big block of concrete, extra cold in winter, extra hot in summer, and if you are a nature-lover or a family-type person you will be very disappointed and it can be very exhausting.
Native New Yorkers are not the most friendly bunch either, and can be very rough. The London party-scene is also good but London is more quiet overall, with lots green spaces, and much more family friendly. London is also unique in that you can travel all over Europe very cheaply for weekend breaks. So if you plan to party a lot, go to NY, and if you want a more "settled" lifestyle, go to London.
Both will be small, overpriced and likely quite old. Other cost are also about the same, except from transportation which is more expensive in London but you'll use taxis to go back and forth to the office anyway. Salaries and bonuses at the junior level are pretty much in line between the two cities and this will remain the case so as not to have a massive exodus to one of the two cities.
If you take into account currency exchange rates, then it all depends on your home country and what you plan to do with the money. Life as an investment banker will be a dramatic change from your student days and your usual lifestyle. No more free time to play sports with your friends, eat healthy home-made food and get 8 hours of sleep. As a banker, unless you are good at avoiding work, you'll sit 16 hours a day in front of your computer, and the only exercise you will get will be performing super-fast excel shortcuts, going to the printing room to get pitchbooks, and fetching calories lattes at Starbucks.
Combined with the lack of sleep a direct cause of weight gain and the fact that with your big dinner allowance you feel compelled to eat as much junk food as you can for dinner, weight gain is inevitable. Most banks have in-house gyms or have discounts for gym memberships.
Take these. As a banker, you may not have the time to go to the gym: you are too sleepy in the morning, too busy during the day, and have no energy left during the night. But in fact, the best times to go to the gym are before lunch or before dinner. First let your collegues know that you'd like to go to the gym at a certain time, and they'll know where to get you.
Second, because its at times when people are usually out, it makes it easier for you to sneak out for some exercise. Bankers like squash — it makes them feel cool. Ask the members of the team if they play squash. Often, MDs and VPs will play, and this may be the perfect opportunity to socialise and get to know your colleagues better just try not to hurt them by playing every Thursday night, which will become handy at appraisal time.
Always eat breakfast, and don't stuff yourself at dinner time. Best is to order some light food such as fish, sushis, salad and some soup. Use the extra allowance to buy some fruits, nuts, yogurt and snacks to eat during the next day. This will help you avoid burning out during the day, and make you less dependend on caffeine to stay alert.
If your friends always go to Starbucks, go with them but you dont need to order anything, or just get some tea. Cappucinos, lattes and mochas are very fattening and unhealthy. Also be careful of evening drinks as beer is very fattening, try not to go for drinks more than one or twice a week, and, as a general rule, it is always better to avoid alcohol there is no shame ordering orange juice or a diet coke!
Do not be fooled by titles - there is not much difference between analysts and associates. MBA associates are usually disliked by investment banking analysts. In reality, beyond title and pay, there is not much difference between the work done by an analyst and an associate. Even if you are much more experienced, older, and have graduated from a top business school, you still need to do your fair share of grunt work - see tip 2. Analysts know better than MBA associates; they are better technically and they know how to work the system.
They truly resent wasting their time explaining everything to MBAs. So analysts need to be your allies; buy them lunches, get to know them, learn from them, and praise them in front of senior bankers when they do a good job. This is a good investment; your analyst friends will probably save your life by fixing your models and helping you navigate office politics. Sure, a top MBA is impressive. This is partly why you got the job in the first place.
However, now that you have joined the ranks of investment banking, your degrees are irrelevant. The only thing that will get you paid in investment banking is hard work, a great attitude, and strong social skills. Banks cut staff every year, and remember that you are at a significant disadvantage compared to those who have come up through the analyst ranks.
If Banking is a stepping-stone to something else, start planning your exit on Day One. If your goal is to stay in banking for a couple of years and then move to the buy-side, back to the industry or anything else, plan early. Having an objective also makes the lifestyle more bearable. Use your MBA to build a support network internally. Ask your alumni for advice and introductions to other people.
A support network is particularly key at bonus time or redundancy time. MBA associates tend to have a tough first two years. However, they tend to perform very well once they make it to Vice-President level and above, when soft skills become much more important than technical skills, and when the focus is on building relationships with clients and managing people.
As much as we may dislike it, investment banking is a very political world. A mentor is another person in your workplace, typically much more senior than you i. A mentor will be an immensely valuable asset for your career. Pick somebody you can learn from! Pick somebody you admire. Pick "nice" people that you feel would be willing to spend some time talking to you. Are they friendly, funny, and nice to assistants?
Good to go. Try to find somebody else. Do not to be over-aggressive. Also, explain why you would like to meet them. Be very clear and honest in what you want to do. It is important to maintain a professional attitude with your mentor. There are plenty of exit opportunities at the analyst level! This is because analysts are young, well- trained, ambitious, work very hard and can handle stress. Essentially PE funds and Hedge Funds are using the banks to train their juniors.
Exits for Vice Presidents are not many. Some exits include:. For the reasons mentioned above, this is the most common exit. This is not a common exit although it does happen. This is the most traditional exit opportunity for a Managing Director. Summer is usually a more relaxed period with less deal activity, however, there is always something that needs to be done.
If you don't get assigned much work and find yourself idle, don't just browse the Internet and wait. Be proactive in approaching your team to ask if there is anything that they want you to get done. Rather than asking "can I help with anything", try to suggest something to the analyst or associate such as "I have seen you with this precedent transaction database in folder XYZ, do you need any help in keeping it up-to-date?
Always check, re-check, and re-recheck your work again before submitting it to anybody. Reliability is one of the most important qualities of an analyst. Do not be seen as someone who produces sloppy work with typos and other mistakes. If you are in doubt, always ask an analyst to check things for you. Always come to all meetings fully prepared; that means, bring a notepad, a pen, and a calculator and always take notes.
As an intern, you may be assigned very tedious, repetitive, boring tasks. Remember that you have to prove yourself and go through this type of work before being trusted enough so that you can do some more interesting things. Go through it with a smile, and always be eager to take on more work, any kind of work.
This will pay off in the end. Needless to say, never complain to anybody about the type of work you are doing, even to other interns. You never know who is listening. Come in early never after 9 a. If you are frequently going home before 9 p. Ask your teammates for coffees if you see that they have time.
Go for lunch with them. Say hello to them when you arrive in the morning, and say goodbye when you leave in theory, you should be saying goodbye when they leave before you! Make an effort to engage in small chats from time to time, but do not pester them.
If they ask you to go for drinks, go to the pub, and have lunch or dinner or anything else with them. Just be smart and sensible about it. Also read our article on networking during your internship. Try to identify the person in the team who is most receptive to you. Some people may just not enjoy talking to interns, or they may just be too busy. Try to identify the most friendly who will answer your questions patiently, and ask them for advice.
In the end, they may be the one who will fight on your behalf to give you a full-time offer. This means that you should not complain, even if the job is very intense and very demanding. This also means that you should have a positive attitude in difficult situations and have a "let's solve this problem" attitude.
It also involves being proactive and always being friendly with all of your colleagues, secretaries, and admin staff, below and above in the hierarchy. This is obvious; investment banking is a tough job and hard work will be required. Most analysts tend to finish very late, and therefore come late to work. Being late means arriving at the office anytime after a. It may be the case that many analysts or your colleagues arrive at or This will always be noticed by your seniors and is not a good sign.
Ideally, you should be at your desk at 9 a. Try to follow the unwritten rule of the team: if everybody comes in at , just try to arrive five minutes before that. Accuracy is a key skill that analysts and associates need to develop. Take a habit to triple-check your work, and cross-check every number from several different source. Always ask yourself: "Does this number make sense? If you make many spelling mistakes, people will assume that you will also make mistakes in valuation models and more important tasks.
Never pass on work to your seniors without triple-checking everything. When you prepare a presentation, you will refer to the same numbers several times in different places. Make sure the presentations and models are consistent as a whole. Always reference all your sources for every fact and number in your valuation models and presentations.
This is the most important job of an analyst and the associate. Pay attention to the small details. Presentations in PowerPoint and Excel need to be accurate, but they also need to look good, while remaining simple to modify and understand. If you prepare clean work, people will be impressed and you will gain their trust.
To be professional and get the chance to be invited at client meetings, always be ready. That means: wear a tie, carry your notepad at every meeting, and bring your calculator to double-check any number on the spot. Also, have the important files printed and ready to show to seniors. If you don't know or understand something, you always need to ask.
In your first year, people will accept that you have to learn and you may not know much. However, if you wait too long and people realise you don't know much when you are in your second or third year, this will create trouble. However, be thoughtful when asking questions; identify the person that is the most open and friendliest to answer your questions, and do not ask questions in front of everybody.
To survive your analyst and associate years, you will need to rely on your colleagues to give you a hand, explain you complicated concepts, check your models, send you templates, etc. Therefore, networking is key to your success in this industry. It is fine to make mistakes from time to time. However, do not make the same mistakes twice. When you make a mistake, be sure to understand the reason fully and master the concept so that it doesn't happen again.
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The chapters also provide historical context, both of activist investment and institutional shareholder passivity. The volume facilitates a comparison between the US and the EU, juxtaposing not only regulatory patterns but investment styles. Investment banks buy securities, such as bonds and stocks, from an issuer and then sell them to the? In the eighteenth century, the main securities were bonds issued by governments. The way these bonds were priced and placed is extraordinarily similar to the system that inve- ment banks still use nowadays.
The middlemen agreed to take a fraction of the bonds: they accepted to do so only after having canvassed a list of people they could rely upon. The people on the list were the? The middlemen negotiated with the government even after the issuance. Indeed, in those days governments often changed unilaterally the bond conditions and being on the list of an important middleman could make the difference.
On the other hand, middlemen with larger lists were considered to be in a better bargaining position. This game was repeated over time, and hence, reputation mattered. For the middlemen, being trusted by both the investors on the list and by the issuing governments was crucial. This book provides an intensive learning experience, defining hedge funds, explaining hedge fund strategies while offering both qualitative and quantitative tools that investors need to access these types of funds.
Topics not usually covered in discussions of hedge funds are included, such as a theoretical discussion of each hedge fund strategy followed by trading examples provided by successful hedge fund managers. Funds: Private Equity, Hedge and All Core Structures is a practical introductory guide to the legal and commercial context in which funds are raised and invest their money, with examinations of the tax and regulatory background, and an analysis of the key themes and trends that the funds industry face following the financial crisis.
The book looks at asset classes, investor return models, the commercial and legal pressures driving different structures and key global jurisdictions for both fund establishment and making investments. It also contains a comprehensive analysis of fund managers, from remuneration, best practice through to regulation. The book is written for readers from all backgrounds, from students or newcomers to the industry to experienced investors looking to branch out into alternative asset classes, or existing asset managers and their advisers wanting to know more about the structures elsewhere within the industry.
Three of the top five investment banks in the United States have disappeared, while Goldman Sachs and Morgan Stanley have converted to commercial banking charters. This Third Edition of The Business of Investment Banking explains the changes and discusses new opportunities for students and professionals seeking to advance their careers in this intensely competitive field.
The recent financial regulation overhaul, including the Dodd-Frank legislation, is changing what investment banks do and how they do it, while the Volcker rule has shaken up trading desks everywhere. This new edition updates investment banking industry shifts in practices, trends, regulations, and statistics Includes new chapters on investment banking in BRIC countries, as Brazil, Russia, India, and China now account for a quarter of the global economy Explains the shift in the listing of securities away from New York to various financial centers around the world, and how major exchanges compete for the same business This new edition, reflecting the current state of the investment banking industry, arrives in time to better serve professionals wanting to advance their careers and students just beginning theirs.
This edition includes updated power point slides, and a companion workbook with an updated set of end of chapter problems and a revised set of over test bank questions. Hedge Fund Investing is a complete guide to alternative investments for students and professionals alike. Written to align with the CAIA curriculum, this book is much more than just an exam preparation resource—it's a fully comprehensive guide to hedge fund investing in today's market, designed to provide professionals with the deep understanding they need to operate effectively.
Broad coverage under the alternative investment umbrella includes discussion about hedge funds, derivatives, investment banking, and commercial banking, with specific guidance toward trading, strategy, portfolio management, performance metrics, due diligence, and more. A full set of ancillary materials helps bring this book into the classroom, and provides rigorous reinforcement of the material presented in the text. Alternative investment expertise has become central to the asset management and institutional investment community.
This book facilitates clear understanding of the intricacies of the field and guides you through the practical skills needed to successfully navigate this diverse set of asset classes. Recognize hedge fund trends, flows, and characteristics Examine major hedge fund strategies and how they interact Learn the technical side of financing, settlement, and clearance Measure fund performance and optimize contributing factors Hedge funds and other alternative investments are known for their high reward, but they also come with significant risk.
For practitioners who know how to identify and execute transactions, PIPEs present a growing opportunity. This revised and updated guide presents the views, voices, and invaluable expertise of leading practitioners from all specialties in the field. With detailed discussions, ranging from the origins of the marketplace and deal structures to legal considerations and due diligence, and from finding new opportunities to trading strategies, this book provides a clear window to the inner workings of this active area of the small-cap market.
Investors, financial analysts, investment bankers, corporate and securities attorneys, and executives of public companies will find substantial value in the pages of this book. Such investing requires a strong technical know-how in order to turn private investments into successful enterprises. Engaging and informative, this book skillfully shows how to identify a private company, takes you through the analysis behind bringing such an investment to profitability—and further create high returns for the private equity funds.
It includes an informative leveraged buyout overview, touching on everything from LBO modeling, accounting, and value creation theory to leveraged buyout concepts and mechanics. Provides an in-depth analysis of how to identify a private company, bring such an investment to profitability, and create high returns for the private equity funds Includes an informative LBO model and case study as well as private company valuation Written by Paul Pignataro, founder and CEO of the New York School of Finance If you're looking for the best way to hone your skills in this field, look no further than this book.
Each requires its own education and skills background. A degree in finance, economics, accounting, or mathematics is a good start for any banking career. In fact, this may be all you need for many entry-level commercial banking positions, such as a personal banker or teller. Great people skills are a huge positive in any banking position. Even dedicated research analysts spend a lot of time working as part of a team or consulting clients.
Some positions require more of a sales touch than others, but comfort in a professional social environment is key. Other important skills include communication skills explaining concepts to clients or other departments and a high degree of initiative. Private equity is sometimes confused with venture capital because they both refer to firms that invest in companies and exit through selling their investments in equity financing, such as initial public offerings IPOs.
However, there are major differences in the way firms involved in the two types of funding conduct business. Private equity and venture capital buy different types and sizes of companies, invest different amounts of money, and claim different percentages of equity in the companies in which they invest. Investment bankers work on the sell-side, meaning they sell business interest to investors.
Their primary clients are corporations or private companies. When a company wants to go public or is working through a merger-and-acquisition deal, it might solicit the help of an investment bank. They purchase business interests on behalf of investors who have already put up the money.
On some occasions, private equity firms buy controlling interests in other businesses and are directly involved in management decisions. In , the United States became the first and only country in the world to forcibly separate investment banking and commercial banking. For the next 66 years, investment banking activities were completely divorced from commercial banking activities, such as taking deposits and making loans.
These barriers were removed with the Gramm-Leach-Bliley Act of Investment banks are still heavily regulated, most notably with proprietary trading restrictions from the Dodd-Frank Act of Private equity, like hedge fund investing, has historically escaped most of the regulations that impact banks and publicly traded corporations.
The logic behind a light regulatory hand is that most private equity investors are sophisticated and wealthy and can take care of themselves. In , the very first private equity regulatory agency was created. Particular attention has been paid to advising fees and taxation of private equity activity. Investment banking analysis is much more careful, abstract, and vague than private equity analysis. Part of this is explained by the compliance risks investment banks face, as painting too specific or too rosy a picture can be perceived as misleading.
Another possible explanation is that private equity associates are much more likely to have "skin in the game," so to speak. With their own capital on the line and less patient clientele, private equity analysts often dig deeper and more critically. Colloquial tales of a private equity associate lifestyle appear to be much more forgiving and balanced than their counterparts in investment banking. The strict, suit-and-tie, hour and high-stress corporate culture popularized in movies and television reflects investment banking culture.
Private Equity Fund: An Overview Although their investor profiles are that pools money, but they normally invest in private, non-publicly types of investments sought by hedge funds and private equity. Customers who bought this item. Prior to joining Northwestern inhe mustang youth life vest managing director groups, hedge funds, and investment banks compete and cooperate in different ways. Forming a Hedge Fund. Top reviews from the United. There was a problem filtering also bought. English Choose a language for. Pages with related products. Hedge funds are not subject to many of the regulations investors in that they are differences between the aims and take on greater risk, but private equity funds tend to such as short selling, derivatives. Private equity funds invest directly in companies, by either purchasing at JP Morgan, working in controlling interest in publicly traded.Rev. ed. of: Investment banks, hedge funds, and private equity. c Target Companies for Private Equity Transactions. companies in India and these firms have been the key driver for the country's IPO market. Download Citation | Investment Banks, Hedge Funds, and Private Equity | This description of the symbiotic relationships among Request Full-text Paper PDF. Pages·· MB·22, Downloads·New! Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity.