Industry Coverage

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Select Financial Services Segments
Private Equity
Investment Banking
Hedge Funds
Venture Capital

• Industry Coverage
• Product Group
• Capital Markets
• Sales Trading
• Equity Research

• Growth Equity
• Large-Cap Fund
• Middle Market
• Control Equity
• Secondaries
• Co-Investing

• Value, Growth, Blend
• Long-only, Long/Short, Short-only
• Fundamental, Distressed, Macro, Event-Driven,
  Trading, Quant

• Control Equity
• Co-Investing

• Client Pitching
• Valuation / Modeling
• Deal Execution
• MA
• Leveraged Finance
• Equity Debt Solutions

• Deal Origination
• Valuation
• Investment Analysis Modeling
• Portfolio Management

Front Office

• Investment Analysis
• Portfolio Management
• Trading

• Deal Origination
• Valuation
• Investment Analysis Modeling
• Portfolio Management

Middle Office

• Portfolio Credit Analysis
• Pricing
• Counterparty Risk
• Ratings
• PL Reporting
• Mark to Market
• Cash Operations
• Settlements

• Cash Management
• Legal Entities
• Tax Structuring
• Investor Reporting
• Fund Valuation

• CFO/COO
• Cash Management
• Marketing
• Legal

• Cash Management
• Legal Entities
• Tax Structuring
• Fund Valuation

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Investment Banking Overview
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Investment Banks serve as intermediaries between
providers and users of capital
Chinese Wall
Strategic advisory Securities underwriting
Sales Trading
Investment Banking
Providers of Capital
Users of capital
Research

• Individuals
• Pension Funds
• Insurance Companies
• Asset Managers
• Corporate Treasuries
• Sovereign Wealth Funds

• Corporations
• Governments
• Municipalities

Public side
Private side
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Overview of Investment Banking
Advisory
Capital Markets

• Equity capital-raising
• Initial public offerings (IPOs)
• Follow-on offerings
• Equity-linked (convertible)
• Debt capital-raising
• High-grade or investment grade
• High-yield
• Syndicated loans
• Tax-exempt

• Mergers Acquisitions
• Buyside
• Sellside
• Spin-offs / Splitoffs / Carve-outs
• Hostile defense
• Hostile takeovers / proxy fights
• Joint Ventures
• Financial Sponsors / Leveraged Finance
• Restructuring
• Ratings

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What Does An Investment Banker Do?
Execution
Origination

• Financial Analysis
• Communication
• Management, Board of Directors
• Internal Committees
• Identify Potential Investors
• Negotiation / Structuring Transactions
• Due Diligence
• Documentation

• Client Relationship Management
• Ongoing dialogue on financial markets, industry
  developments, new products
• Long-term relationship as advisor to Senior
  Management and Boards
• Idea Generation and Problem Solving
• Strategic Alternatives
• Capital Raising
• Optimizing Capital Structure
• Risk Management, Dividend Policy
• Assessment Of Opportunities

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Investment Banking Groups
Product
Industry Coverage
Capital Markets

• MA
• Corporate Finance

• Consumer Retail
• Healthcare
• Technology
• Media Telecom
• Industrials
• Natural Resources
• Real Estate

• Equity Capital Markets
• Debt Capital Markets
• Tax-exempt
• Leveraged Finance
• Securitized Products

Markets
Technical
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Investment Banking Competitive Landscape
Bulge bracket
Middle Market
Boutique
Low
High
Capabilities
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Life of an Investment Banking Analyst
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Overview of Investment Banking analyst programs

• Two-year program with opportunity for a 3rd year
• 6-8 week training
• Mentorship programs
• Networking opportunities
• Summer internship program serves as primary
  feeder to full-time analyst positions

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Role of an Investment Banking Analyst

• Be a member of a deal team, executing day-to-day
  activities surrounding live transactions
• Perform financial analysis and modeling
• Develop and prepare client presentation materials
  (pitches, roadshows, board materials, etc.)
• Coordinate roadshows, and MA processes
• Research and due diligence

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Why Investment Banking?
Challenges
Benefits

• Everyday is different
• Exposure to senior management
• Steep learning curve
• Work with talented and motivated people
• Gain a strong background in financial analysis
• Help execute exciting, landmark transactions
• Networking
• Exit opportunities

• Long and unpredictable hours
• Traveling
• Demanding senior bankers
• High stress/pressure environment

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Tools of the Trade
Positives/Drawbacks
Banker Skill Set

• Exposure/network
• Magnitude/notoriety of deals
• Responsibility
• Skill and knowledge base development
• Compensation

• Long hours
• Work-life balance
• Stressful environment
• Intensity
• Focus on detail

• Motivated
• Team player
• Quantitative
• Personable
• Flexible
• Articulate

• Aggressive
• Deal oriented
• Willing to take initiative
• Handle stress well
• Professionalism
• Responsible

• Little things can mean a lot and poor execution
  can mask good skills
• attention to detail
• aesthetics
• professionalism
• timeliness
• Communication is the key to good teamwork and
  efficiency
• understand what expectations are
  (timing/deliverable), aka underpromise and
  overdeliver
• Analysts generally treat their years as an
  investment in personal capital
• seek out workbe an entrepreneur
• vary the people and types of projects to work
  with/on
• maximize client exposure and value add

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Qualities that Investment Banks Look for in
Candidates

• No one facet is more important than the rest. A
  well-rounded candidate who strives to encompass
  awide-variety of talents and interests often
  finds success

• A Strong Interest in Finance
• take courses that demonstrate your interest in
  finance
• ability to explain what is investment banking?
  what does an analyst do? why would you be a
  strong candidate?

• Coursework or Work Experience
• that demonstrates comfort with numbers/knowledge
  of financial statements
• that shows comfort in front of people (e.g.,
  sales position,student government)
• any work experience that demonstrates drive

• A Team Player
• team-driven (job/athletic/academic)
  accomplishments on resume
• the objective is to demonstrate that you work
  well with others

• A Record of Success and Achievement
• academic GPA, scholarships/honors, test scores

• Leadership of student organizations or teams
• a high level of athletic accomplishment
• community service with a record of achievement

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General Preparation

• Network with peers and alumni
• Internships
• Research - Do I want to do Investment Banking?
  What type of firms?
• Make sure your resume is clear, concise and error
  free
• Take advantage of resources available to you
  (alumni, Feld Career Center, etc.)
• Everything is fair game
• Practice, practice, practice

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The Interview

• Be prepared know as much about the bank and
  position as possible
• Know yourself what motivates you, your strengths
  and weaknesses and be able to articulate those
  points
• Know EVERYTHING on your resume
• Be honest and demonstrate enthusiasm and
  motivation
• Read the Wall Street Journal EVERYDAY and use the
  Vault Guides
• Practice interviewing (mock interviews, preparing
  answers, etc.)
• Ask questions

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Resources

• Vault Career Guides
• Breaking Into Wall Street
• Wall Street Prep
• Wall Street Training
• DealMaven
• Wall Street Training

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Corporate Banking Overview
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What is Corporate Banking?

• Provides Corporate Finance advisory, structured
  finance, and the extension of capital to
  corporate clients
• Corporate Bankers are coverage officers who are
  the primary point of customer contact (aka
  Relationship Managers). Corporate bankers are
  responsible for
• forming trusted advisor relationships with
  clients
• developing integrated financing strategies to
  satisfy complex client financing needs
• providing innovative intellectual and financial
  capital to clients
• Corporate Bankers partner with Investment Banking
  and product groups such as Capital Markets,
  Derivatives, and Cash Management/Treasury groups
  to provide the full spectrum of banking services
  to clients

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Corporate Banking

• The Corporate Banking product offering is focused
  on debt and other corporate finance products

InvestmentBanking
CorporateBanking
MA
Equity
Debt
Cash Management / Treasury
StructuredProducts

• Strategic Advisory
• Divestitures
• Acquisitions

• IPOs
• Follow-On Issues
• Preferred
• Convertibles

• Receivables Securitization
• Asset Based Finance
• Project Finance
• Synthetic /Leveraged Leases
• Commodities / FX
• Equity Derivatives
• Pensions

• Debt Issuance
• Acquisition Finance
• Bilateral Syndicated Loans
• Derivatives
• Commercial Paper
• Hybrids/ Convertibles

• Cash management
• Securities Services
• Trade Finance
• Investments
• Agency Trust
• Corporate Cards

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Corporate Banking

• For large multi-national corporations, corporate
  bankers primary contacts in a company are the CFO
  and Treasurer

Coverage
Product Offering
Board of Directors
Investment Banker
Strategic and Financial Advisory
CEO
CFO
Corporate Banker
Capital Structure Management
Treasurer
Assistant Treasurer
Cash Management and other Treasury Products
HR
Ops
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Corporate Banking

• Role of an Analyst
• Prepare client presentations and marketing
  materials
• Participate in customer calls and client meetings
  
• Perform industry and company research to develop
  a view on financing transactions
• Coordinate due diligence process
• Navigate and participate in term sheet
  negotiation
• Analyze the risks associated with a transaction
  and the implications on relationship returns
• Drive dialogue with Credit Risk Management on
  client credit analytics and recommendations
• Evaluate impact of products on companys future
  earnings, EPS accretion, and credit ratios
• Analysis and dissemination of industry
  performance and trends

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Corporate Banking

• Although skill sets are similar, the role of a
  corporate banking analyst slightly differs from
  an investment banking analyst

Low
Somewhat Low
Medium
Somewhat High
High
Financial Modeling
Credit Analysis
Valuation
Pitching/Presentation
Deal Execution
Client Interaction
Hours in the Office
Investment Banking
Corporate Banking
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Credit Risk Management Overview
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What is Credit Risk Management?

• Analyzes, monitors, and mitigates credit risk for
  individual clients by evaluating new transactions
  and managing a loan portfolio
• Participates in deal teams with primary focus on
  the banks credit exposure to the client
• Manages credit approval process (including
  preparation of credit approval memos)
• Responsible for approval decision as to whether
  to lend/commit
• Works with Banking (Investment Banking and
  Corporate Banking) and Product partners on client
  strategies relating to capital structure
• Monitors the aggregate portfolio risk for
  corporate clients
• Completes hedging strategies to mitigate risk
  from distressed loan exposure

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Credit Risk Management

• Group Interaction

Investment Banking

• Work together on extending financing on MA, LBOs
• Bridge Loans

Derivatives and other Traded Products
Corporate Banking

• Work together on extending credit for capital
  structure financings and other banking products

• Risk required to approve any credit exposure
  relating to derivative positions

Credit Risk Management
Loan Capital Markets (Leveraged Finance and High
Grade)
Cash Management / Treasury Products

• Risk required to approve any credit exposure
  relating to cash management positions (ie.
  Letters of credit, overdrafts, etc.)

• Work together on structuring financings and
  negotiating credit agreements

Legal

• Work together on identifying credit risks in
  credit agreements

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Credit Risk Management

• Role of an Analyst
• Prepares transaction credit approval memos
• Focusing on credit quality of the borrower and
  banks commitment
• Participates in due diligence process
• Prepare financial models projecting cash flows
  and ability to repay debt
• Compose annual and quarterly credit reviews to
  determine risk ratings of clients
• Complete valuations of companies (discounted cash
  flow analysis, comparables) to determine loan to
  value
• Perform portfolio stress testing to determine
  potential portfolio losses
• Complete periodic industry and sector overviews,
  primarily focused on industry performance
• Design hedging strategies (CDS purchases, asset
  sales) to mitigate outsized risk