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Originally Posted by anoldanalyst
If you look across the top rated analysts today, say in Asiamoney or Institutional Investor, how many started off in their early/mid 20's in investment banks. I know many of them and can only think of one chap. Most of the top analysts came in from the industry. These days, even if you are from Harvard, Yale, Princeton, its still very competitive to get into graduate programs at BB investment banks so you can't waltz in.
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Yes of course, but notice I said 'networks are strong and basics are not lacking' too.
Quote:
Originally Posted by anoldanalyst
I assume you are talking about CF (M&A just being a small part of CF) being the most prestigous place to be. I don't agree. Most of the analysts there are quite invisible and its a real slog. I know, because I worked with them on deals. Deals happen because of the firm's reputation, distribution capability, quality of research etc rather than the skill of the CF analyst in putting together the pitchbook. I don't find that very satisfying at all even if there is a big paycheck. There is some skill in structuring deals, but quite frankly, I've met so many people that can structure well, its not exactly a unique skill. As a sellside analyst, it may be an intense job, but there are the fun parts... the long broker lunches, playing golf with corporates, winning in the polls etc. As a top ranked analyst, you are respected by corporates and your peers.
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Yes, but rainmaking/career development does not happen in IBs. I will move on to my MBA in 2 years' time and thereafter to PE/HFs. The hours there are not as bad as in IB and 1st years at a top-ranked PE (carlyle, KKR, TPG) draw a pay comparable to 1st yr associates. My point is that experience in CF (TMT/M&A etc) is what PEs would look for during recruitment.
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Originally Posted by anoldanalyst
When you put 'Prepared precedent transaction and comparable multiple ....', how much was it really your work that secured the deal vs your firms reputation and other high level management manuvering? Very little I suspect. I was often dragged in during the beauty parade to convince the client that we have an analyst that can influence the stock price. When I put "Top ranked in internal polls by Capital, Fidelity and GIC", people would hire me because of my ability to get voted by the largest and most important fund managers in the world. |
Yes, it was all due to the rainmaking capabilities of the senior bankers. But This "'Prepared precedent transaction and comparable multiple ...." is what I'll be able to put in my resume after barely 1 yr of work. To be a top-ranked research analyst, i'll would probably need at least 5, and I would not stay that long just to get it. And as I said earlier, PEs do not hire 1st/2nd yr analysts who think they can make rain. They hire analysts who can churn out relatively acceptable (not accurate. figures usually given by your MD) pitchbooks and valuations in an inordinately short amount of time. Valuations in IB is more of an art rather than hard science.
Of course all of this assumes that young mr hws intends to follow the usual route into pe/hf through ib.